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by John Goodrich
At 5,525 miles, the U.S.-Canadian border is the longest peaceful frontier in the world. Despite that impressive statistic, Canada remains an enigma for many U.S. business people. According to the U.S. Census Bureau there are more than 300,000 companies that export from the U.S. Canada is the United States' single largest trading partner with annual goods and services trade of about $1 trillion. With such an important export market at our doorstep it is a wonder how little the average U.S. exporter really knows about Canada; present company included.
It seems some of our perceptions of Canada were formed early in childhood through the exploits of Dudley Do-Right and Snidely Whiplash. Perhaps, like me, you gained an appreciation for Canada through consumption of some of its finely brewed adult beverages. Or maybe you have been touched by one of their cultural exports such as actor William Shatner or singers Anne Murray, Celine Dion or (gasp) Justin Bieber.
But do you know anything important about Canada? Quick! Who is the current president of Canada? Well if you answered that Canada does not have a president, good for you! Canada has a constitutional monarchy with the Queen as its figurehead represented by an appointed Governor General and with principle leadership provided by an elected Prime Minister. By the way the current Prime Minister is Stephen Harper.
Perhaps even more discouraging than the lack of awareness of all things Canadian is the tendency to treat our business with Canada cavalierly, as if it were just one more domestic truck shipment across country. You don't think I'm talking about your company? Think again. Many U.S. businesses I have encountered manage their shipments to Canada through their domestic transportation group, even when they have an import/export department!
News flash! Canada is separate country with laws and regulations that differ from those in the U.S.
Your company's lack of knowledge and experience dealing with Canada's commercial and trade regulations is causing your northern customers considerable frustration and might be costing you business. Your Canadian counterparts are probably too polite to share their vexation with you. Secretly, however, they are giving themselves the V-8 salute, slapping their foreheads in exasperation.
It starts with your lack of understanding of their holidays. One customs broker in Canada shared with me that she chuckles every time she is greeted with Happy Thanksgiving in late November. For her, Thanksgiving occurred six weeks earlier in mid October. Her frustration grows, however, when you demand her office be open on July 1, Canada Day.
Of course more serious is the failure of U.S. companies to recognize that their goods are subject to regulatory oversight. Goods traveling from the United States to Canada are subject to the same U.S. export reporting and export control laws as goods sent to other countries.
This is easy to forget because most shipments are exempt from U.S. export reporting and export licensing when shipped to Canada. Nevertheless, U.S. exporters should screen their goods and Canadian transactions and retain transactional records with the same diligence and rigor they would for exports to other destinations. (You are controlling your other exports, aren't you?)
Goods entering into Canada are subject to comparable regulatory oversight as in the United States but with a slightly different twist or accent. For example, food in Canada is subject to regulations under the Canada Food Inspection Agency (CFIA). CFIA has slightly different regulations relative to food additives than the U.S. This results in goods that might pass U.S. FDA standards not meeting Canadian CFIA standards.
The Canadian customs entry process is also different. While Canada uses the Harmonized System Convention as the basis for its customs tariff, it has a unique set of 10-digit codes. These codes may require identifying additional or different product specifications or determining a different reporting quantity.
Canada has also designed a special customs invoice that incorporates more data elements than a standard commercial invoice. Your Canadian customer would like for you to complete that document, or at least provide all of the information required so that they can complete the Canada customs invoice themselves.
Finally your Canadian customer would like you to complete a NAFTA certificate for them, but they want it to be accurate and they want it to be truthful. If you don't know if your goods qualify for NAFTA, then don't complete a certificate of origin!
It is perplexing how many companies fail to agree on which party will take on the import responsibility at the time they negotiate a sales contract. Canada allows for nonresident importer status, and it is common for U.S. companies to take on the role of the importer. Without agreement about this critical obligation, U.S. sellers may find themselves paying duties and fees that were not originally in the budget.
As with any unknown situation, knowledge is power. The Canada Border Services Agency (CBSA), the customs service in Canada, maintains a plethora of information at its website. Perhaps the greatest flaw in this website is that it provides so much guidance it is difficult to know where to start.
For those of you seeking additional guidance, you may consider taking a seminar or engaging the services of a consultant. Don't underestimate a trip north to meet with clients and service providers. Such visits are invaluable to increasing your understanding of the workings of the Canadian border.
With a little bit of additional knowledge and awareness you will find your Canadian clients will be impressed. They may even invite you to Thanksgiving dinner! Now wouldn't that be great, eh?
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| LUCE16-2LS bearing | 16 | 26 | 34.5 |
| LUCE12-2LS bearing | 12 | 22 | 31 |