The global trade market provides valuable opportunity for Canadian importers and exporters. Complying with Canada’s international trade law is an inescapable part of successfully leveraging trade relationships that Canada maintains around the globe.
From trade laws to customs regulations, businesses must navigate legal considerations to achieve compliance, mitigate risks, and ensure the economical movement of goods across borders. Companies that efficiently steer through regulations and international trade contracts can reduce trade costs to help protect margins.
Canada's international trade regulations play a pivotal role in shaping business operations inside and outside the border. Trade sanctions, forced labor regulations, export and import rules, anti-corruption laws, and fair procurement processes highlight some of the most relevant and crucial legislation that businesses need to understand.
Canada’s export and import control
The Export and Import Permits Act (EIPA) provides regulations that outline the movement of goods flowing in and out of Canada. Companies need to comply with permit requirements and goods restrictions for items such as firearms, agricultural imports, controlled goods, and potentially hazardous chemicals.
Customs and border laws
Compliance with Canada's customs laws is an essential aspect of smooth import processes. Failure to adhere to requirements can result in disruptions, seizures, or fines levied by the Canada Border Services Agency (CBSA) or other government agencies. Businesses must accurately report imported goods and pay the applicable duties and taxes.
Canadian international trade agreements
Canada’s diverse trade relationships include a variety of multilateral trade agreements, such as the Canada-United States-Mexico Agreement (CUSMA), the Canada-European Union Comprehensive Economic and Trade Agreement (CETA), and the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). These relationships provide Canadian companies with access to a diverse range of markets. Compliance with trade agreement obligations, such as government procurement rules and investment protections, ensure that you access global markets seamlessly.
Government procurement rules
Trade agreements often contain provisions that outline government procurement processes, promoting fair and open competition. These rules ensure that both local and foreign suppliers can challenge procurement practices through different dispute resolutions that ensure equitable treatment.
International trade sanctions
Canada imposes sanctions via the Special Economic Measures Act (SEMA), the United Nations Act and other legislative acts. International trade sanctions are typically implemented to punish violations of international law, human rights, and corruption. Non-compliance can result in severe penalties, such as frozen freezes and even criminal charges.
Anti-corruption trade laws
Canada's anti-corruption laws, such as the Corruption of Foreign Public Officials Act and the Criminal Code of Canada, combat domestic corruption, international corruption, and bribery – including bribes enabled by importing and exporting activities. Companies that don’t comply with legal standards for ethical and transparent trade can experience significant legal repercussions.
Forced labour laws
Businesses must adhere to Canada's prohibition on goods produced through forced labor. Bill S-211 is an act that’s designed to fight against forced labour and child labour across the world. If the CBSA suspects that the goods you import were created using forced labour, you’ll need to prove that your goods comply with the practices outlined in Bill S-211.
Anti-dumping and subsidized imports rules
Canadian law includes the Special Import Measures Act (SIMA) that protects Canadian companies and industries from the negative economic effects of anti-competitive behaviour. Businesses involved in international trade must ensure that they comply with investigations and rules that help to prevent subsidized imports and unfair trade practices.
Navigating Canadian trade law and regulations requires a comprehensive understanding of a shifting legal landscape. Companies must prioritize compliance ensure sustainable growth and avoid serious business disruptions.
Adhering to legal requirements and embracing ethical business practices will help you establish a strong foothold in the Canadian market en route to capitalizing on vast opportunities. Customs consulting is what we’ve been doing for more than half a century. Connect with us today.