A brief overview Neil Withers VP CERBA withers@dol.ru +7 916 505 6066 Exporting to Canada A brief overview Neil Withers VP CERBA withers@dol.ru +7 916 505 6066
Russia – Canada Trade
Russian Exports to Canada 2015
Russia’s key Exports Product HS Code Product Type Volume 2015, USD thousand Change in 2015, % 27 Mineral fuels, oils, distillation products, etc $266,409 203% 40 Rubber and articles thereof $101,114 2% 31 Fertilizers $98,040 -10% 72 Iron and steel $53,186 -50% 28 Inorganic chemicals, precious metal compound, isotopes $44,679 22% 71 Pearls, precious stones, metals, coins, etc $39,635 39% 74 Copper and articles thereof $36,050 51% 03 Fish, crustaceans, molluscs, aquatic invertebrates nes $27,771 5% 44 Wood and articles of wood, wood charcoal $26,423 -3% 88 Aircraft, spacecraft, and parts thereof $22,572 -14% 81 Other base metals, cermets, articles thereof $16,725 40% 29 Organic chemicals $12,854 363% 84 Machinery, nuclear reactors, boilers, etc $12,230 18% 73 Articles of iron or steel $7,724 68%
The legal structure of Canada Federal and provincial jurisdiction Branches of government: legislative, executive and judicial. Common law and civil (Quebec) law traditions
Business structure Sole proprietorship Partnership Corporation Residency requirements Branch operations obtaining a licence or otherwise registering in the province resident agent, representative, warehouse, office, real property or regulated type of business Joint venture
Visa to Canada Tourist or Business visa? Tourist: Business Visa Hotel reservation and travel within Canada Demostrate intention to return to Russia Business Visa Generally invitation from business contact Not to look for job
Business Visa to Canada Typically foreign nationals who enter Canada temporarily to engage in international business activities for a short time - general criteria: Business visitors must have no intent to enter the Canadian labour market (not looking for a job). The intended activity in Canada must be international in scope. The primary source of remuneration must be outside of Canada. Their employer’s accrual of profits must be outside of Canada.
Good reasons for a Business Visa Attending business meetings Exploring business opportunities in Canada Negotiating the sale of non-Canadian-origin goods to Canadian customers Providing some types of after-sales service to Canadian customers Training Canadians employed within the same corporate group as the trainer Attending seminars or trade shows
International trade Importation of goods Anti-dumping and countervailing duties Export controls and sanctions Controlled goods regime (Exports) Investor-state disputes Canada's blocking legislation: The Foreign Extraterritorial Measures Act Proactive trade compliance
Ask advice from your Customs Agent Importation of Goods a. Duties and tax Customs duties are levied on imported goods (Schedule to the Customs Tariff). In addition to customs duties, imported goods and some services are subject to the federal Goods and Services Tax (GST) There are many special tariff items under the Customs Tariff that allow for duty relief, such as goods destined for particular end uses. Canada also has duty-relief programs for temporary importations. b. Valuation. c. Rules of origin d. Appeals e. Import restrictions Ask advice from your Customs Agent
Dispute resolution & litigation The court system in Canada Civil litigation (including alternative dispute resolution) Class proceedings Product liability Canada Consumer Product Safety Act (CCPSA) and federal Food and Drugs Act. A blanket prohibition on the marketing of unsafe products Support by a supplier of the safety of their product An obligation on a supplier to report adverse events Broad governmental investigatory and enforcement powers, including ordering product recalls Penalties in the form of fines of up to $5,000,000 and prison terms of up to two years for breaches of the CCPSA
White collar crime/corruption Foreign corruption Antitrust/competition law Securities prosecutions Fraud Corporate criminal liability Regulatory prosecutions Anti-money laundering and terrorist financing
Trade Shows and Canadian contacts Алекс Гришин / Alex Grichine Regional Director - Russia Canada Eurasia Russia Business Association (CERBA) Tel +7 495 215 0964 Mob +7 985 762 1240 alex@cerbanet.org www.cerbanet.org
Legal Advice There are several international firms I Moscow with strong Canadian capability Gowlings