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Access to Markets Matters… In a recent survey of members, Canadian Manufacturers and Exporters (CME) reported that while Canada and the US dominate as the lead markets for Canadian sales and sourcing, Western Europe, Mexico, China, and India, are rapidly picking up steam as markets of interest for Canadian exporters and importers. The passport to world trade is knowledge of the intricate details governing Customs laws in foreign markets, and a well thought out compliance strategy is essential to ensure access to new markets and suppliers is not compromised.
Cost Certainty Matters… While service, quality, and innovation are key ingredients, accurate pricing is often the critical component that makes or breaks deals. Building an accurate costing for your exported products or imported goods depends on factoring in the correct Customs-related costs. Underpaid duty can trigger a future liability with Canada or US Customs that once detected will require payment long after the sale, which will be unrecoverable, eroding or destroying expected profit margins. Overpaid duty can create pricing inequities that could render your products uncompetitive, as a 5% input cost will often double or triple in impact as final markups and retail margins are accounted for.
Risk Matters… Business leaders hate surprises, especially the kind that create retroactive liabilities reaching back several years, as can be the case with regulatory non-compliance. Global Customs regimes are utilizing sophisticated detection mechanisms to monitor and enforce trade regulations, that quickly evolve to forensic assessments regarding value, tariff classification, and origin information used to report your imports and exports. Canada and US Customs have introduced stiff penalties that escalate with the value and frequency of the contravention, and that are retroactive up to four years. The cost of penalties and retroactive corrections can be significant, stretching into the tens and hundreds of thousands of dollars, eroding or eliminating anticipated profit from past and present sales.
Reputation Matters… International business is based on the fair exchange of goods, services, and currency. Once a corporate or personal reputation is tarnished because of a perception of not playing by the rules, opportunities can be compromised, and deals killed, notwithstanding considerable personal liability for corporate officers deemed to be negligent by intention or neglect. Conversely a solid reputation as a diligent and compliant global trader can open doors to new opportunities and markets — it still is a small world after all.
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