Exporting Your Goods

Laws and Regulations

General the laws and regulations covering export markets are either international trade law or the laws of the export market. The following 14 questions and answers can help you be prepared:

Where can we find current information on applicable tariffs?
What do we need to know about international contracts?
What types of disputes might occur when we export?
What is our best recourse for resolving disputes?
Why should we adopt international standards?
How can we find information on the international standards we need to meet?
What distinguishes a contract for the sale of goods?
What are our rights once transfer of title has occurred?
What methods may we use to deliver the goods to our buyer?
What is considered the place of delivery?
What conditions control acceptance of goods by the buyer?
What conditions control rejection of goods by the buyer?
Must we allow the buyer to examine the goods before accepting or rejecting them?
What is our best protection against non-payment?

Where can we find current information on applicable tariffs?

Both the Canadian Transportation Agency (CTA) and Air Canada offer detailed information on applicable tariffs.

What do we need to know about international contracts?

While certain basic issues are common to all international contracts, the most fundamental principle is that of specifying the “applicable” law of the contract. The applicable law determines liability and how disputes will be resolved.

What types of disputes might occur when we export?
  • Disputes with agents or representatives
  • Collection of payments due
  • Breach of contract or warranty
  • Intellectual property rights
  • Secured creditors’ rights (e.g., seizure of assets)
  • Enforcing foreign judgments

What is our best recourse for resolving disputes?

The best strategy is to avoid disputes through due diligence and building strong relationships with intermediaries and customers. Resolving disputes formally through the legal system can be costly, not only in time and money but also in negative publicity.

Why should we adopt international standards?
  • Increased competitiveness in the global marketplace.
  • Faster, easier access to foreign markets.
  • Simplify the exchange of technical information with experts in other countries.
  • Avoid the cost and bother of testing and recertification when entering a new market.

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How can we find information on the international standards we need to meet?

The Standards Council of Canada (SCC) is the best source of current information. SCC has an Export Alert! program that you can register for, which provides you with automatic email notification of proposed regulatory changes in global markets. Two other SCC tools that you may find useful are RegWatch, a database of standards referenced in federal legislation, and Standards Alert!, which allows you to monitor Canadian, ISO and IEC standards and get automatic notification of changes.

What distinguishes a contract for the sale of goods?

The transfer, or agreement to transfer, goods to the buyer, in return for a sum of money.

What are our rights once transfer of title has occurred?
  • The buyer may not reject the goods, despite valid complaints regarding quality, quantity or description.
  • You may sue the buyer for the full unpaid price, rather than merely for the lost profit.
What methods may we use to deliver the goods to our buyer?
  • Physically, by delivering a legal document of title, such as a bill of lading.
  • Symbolically, by delivering, for example, the key to where the goods are stored.

What is considered the place of delivery?

Typically your contract should specify where the delivery will take place, using such International Commerce (INCO) terms as Cost, Insurance and Freight (CIF) or Free on Board (FOB).

If the contract does not specify the place of delivery, then the place of delivery is understood to be your place of business and delivery is considered complete when you deliver the goods to a carrier.

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What conditions control acceptance of goods by the buyer?

If you meet all the conditions of the contract, your buyer must accept the goods. Refusal to accept them without justification gives you the right to sue for damages. The buyer is also bound to accept the goods if the buyer does any of the following:

  • Conveys their acceptance to you or your intermediary.
  • Acts in a manner that is inconsistent with your ownership of the goods (e.g., by reselling the goods after they are delivered).
  • Keeping the goods without notifying you that they have decided to reject them.

What conditions control rejection of goods by the buyer?

If you breach a condition of the sale, the buyer can legally reject the goods. The buyer may not reject the goods without justification.

Must we allow the buyer to examine the goods before accepting or rejecting them?

Yes, upon request.   

What is our best protection against non-payment?
  • Payment in advance or upon delivery.
  • Payment by confirmed letter of credit (preferably irrevocable).
  • Security for the unpaid purchase price (e.g., a written guarantee or a mortgage against real estate).