Exporting Your Services
Taking Equipment Across the Border
Exporting services often involves the movement of equipment, supplies, and other goods across borders. Laptops, software, trade show booths, and conference materials, for example, may be required for conducting your business abroad. There are a variety of methods for temporarily exporting such items from Canada to the target market.
The first is a Temporary Import Bond (TIB) with the importing country. Under a TIB, exporters place a bond for twice the amount of the duty and taxes on the item that would otherwise be owed if imported. Depending on the country, TIBs are typically good for one year, at which time the item must be returned back to Canada. Customs brokers can assist you with obtaining TIBs.
A second method is the ATA Carnet, an international customs document that can be used to temporarily import goods, duty free, around the world. It replaces the need for customs documents and guarantees the duties on the goods will be paid if they are not subsequently re-exported. This “passport” for equipment and sample products can be issued for up to one year and can be obtained from the Canadian Chamber of Commerce.
The last method is to formally export the items, pay duty on them, and, once they are re-imported into Canada, apply for a refund on the duty and taxes. Whichever method is used, it is critical to be aware of the fact that even samples, trade show booths, and some documents (such as specs) must make formal entry into the market through the appropriate documentation.