o the untrained eye, the United States appears to have a lot in common with Canada. We share the same border, speak the same language at trade shows, enjoy a good hockey fight, and refuse to take Avril Lavigne seriously. It is easy to think of Canada as an extension of the 50 states, but looks can be deceiving. In addition to having a queen, using currency with names like "loonie" and "twonie," and having two official languages - English and French - Canada has a variety of quirks that clearly make it a foreign land and demand that it be treated as such - especially when it comes to exhibiting.
So, if you have a Canadian trade show or two on your travel calendar, pay attention. The following information will help you get your gear across the border and exhibit your wares successfully in the country that gave us Celine Dion and William Shatner.
Passport Precautions
Gone are the days when you could just hop in your Honda and drive across the border to attend a trade show in Toronto or satisfy a craving for french fries and gravy. In January 2007, the United States began implementing the Western Hemisphere Travel Initiative (WHTI), a plan that makes travel to and from Canada, Mexico, the United States, Bermuda, and the Caribbean the same as travel to and from any other foreign country for U.S. citizens. The first part of the WHTI, which applies to air travel, has been in effect since January 2007 and requires U.S. citizens to have a valid passport when traveling to and from Canada by plane. The second part of the WHTI, which goes into effect as early as January 2008, will require U.S. citizens who are traveling by land or boat (including ferries) to have a valid passport to cross the border into Canada.
Be sure every member of your booth staff - and anyone else attending the show - is aware of the changes and has a valid passport in time for the event. For information on how to obtain a U.S. passport, which typically takes six to eight weeks to process, visit the U.S. State Department's travel Web site (www.travel.state.gov).
Brokering and Entering
Even though Canada is just a hop, skip, and jump away, it is still a foreign country, and there are several customs forms that need to be filled out prior to your booth's entrée into Canada. Your transportation company might have an on-site customs broker who can assist you with the forms, or you can check your exhibitor manual to see if show management has identified an official customs broker. A customs broker is an individual or agency that is licensed and regulated by U.S. Customs and Border Protection (CBP). Your broker will submit all the necessary paperwork and duty/tax payments to the CBP and the Canada Border Services Agency (CBSA) on your behalf, for a fee. Though it is not necessary to work with a customs broker, it is highly recommended - especially if you are exhibiting in Canada for the first time. A broker will be familiar with the customs procedures, forms, and penalties, and will be able to assist you should problems arise when your shipment enters U.S. and Canadian customs.
Forms and Functions
Even though your customs broker will obtain and turn in the customs forms for you, it is important to know what it takes to cross the border should you ever have to go it alone. There are a couple of options for dealing with U.S. and Canadian customs when it comes to transporting trade show goods: the ATA Carnet (Admission Temporaire/Temporary Admission), the CBP Certificate of Registration (Form 4455), and the CBSA Temporary Permission Permit (E29B). The 4455 and E29B have to be used together, as the 4455 is only reviewed by U.S. customs, and the E29B is only reviewed by Canadian customs.
To figure out which option is right for you, first ask yourself, "Where is my exhibit going after it leaves Canada?" suggests Angie Meyer, international operations manager with The Shaker Group, a New York-based transportation company. If you answered "to another country," read the information below about the ATA Carnet. If you answered "back to the United States," skip to the information about Form 4455 and the E29B.
ATA Carnet
If you will be shipping your exhibit to another country after the show, Meyer recommends an ATA Carnet because it is accepted in more than 75 countries. However, because of the fees associated with it, including a processing fee ranging from $200 to $330 depending on the total value of goods on the carnet, "it is only efficient if you have back-to-back shows and your shipment is traveling to multiple countries," Meyer says. "An ATA Carnet is basically a fast pass through customs."
You can also think of the ATA Carnet as a passport for your exhibit and any trade show materials you plan to ship with it. Carnets are valid for one year and must match the inventory listed on the accompanying commercial invoice. The items and values listed on the carnet have to be the same when you are entering and exiting Canada, which means the carnet cannot be used for promotional items such as booth giveaways or VIP gifts. Those goods have to be itemized on a separate commercial invoice.
You will not be assessed duties or taxes for goods listed on the carnet. "It doesn't make sense to process duties and taxes if the product isn't physically staying in Canada," says Dan Spigner, global sales manager with The Shaker Group. Once you have filled out the carnet, which is available online at www.atacarnet.com, it is turned over to your customs broker or transportation company. Whether your transportation company has its own customs broker or you are working with the show-appointed broker, all documentation will eventually need to be given to the person accompanying your freight through customs. That person will then hand the paperwork over to the customs agent.
Form 4455 and the E29B
If your exhibit and booth materials are returning directly to the United States, Meyer recommends obtaining the Form 4455 from the CBP, available online at www.cbp.gov, which will register your shipment with U.S. customs. You will also need to fill out the Canadian equivalent, the E29B, available online at www.cbsa-asfc.gc.ca, which covers goods that will be in Canada for 30 days or less. Don't forget that you have to present the E29B on your way out of Canada to prove no goods were left in the country.
Commercial Invoice
Whether you choose to use the carnet or Form 4455 and the E29B, all documentation must be accompanied by a commercial invoice, which must include the "ship to" address, total value of goods (including booth materials, graphics, product displays, kiosks, etc.), serial numbers for all electronic equipment as well as their makes and models, and country of origin for each item you are taking across the border. "List your giveaways as 'promotional items not intended for resale' on a separate commercial invoice," Meyer says.
If there are mistakes on the forms or your listed items don't match up with your physical shipment, the chances of customs clearing your goods are about as good as Kurt Browning skating for gold in the 2010 Vancouver Olympics. "The most obvious penalty is non-clearance of goods and possibly delay or non-delivery to the event site," says Sunny Salas, director of exhibit transportation and customs for the Canadian division of Freeman, a trade show management and transportation company. The monetary penalties will vary depending on the type and value of the items.
Meyer also suggests that the name of your broker be included on each commercial invoice to ensure the charges are applied correctly, especially if the broker you chose is not the official broker for the show.
Crossing the Line
Whoever enters U.S. customs with your shipment (whether it's yourself, your customs broker, or the truck driver) must present your documentation (the carnet or the U.S. Form 4455 and the Canadian E29B) to the customs agents when he or she exits the country. At the border point of entry, the U.S. customs agents will review and stamp the ATA Carnet or Form 4455, and assign a registration number that will be used to track your goods as they go to through customs.
After clearing U.S. customs, your goods will enter Canada, where a Canadian customs agent will review the documentation and stamp the ATA Carnet or E29B.
Keeping track of your stamped documents is the most important step in crossing the border in to and out of Canada because those documents are the key to your goods' re-entry to the United States. Be sure the person transporting your goods to the Canadian show site knows to whom the paperwork goes once he or she delivers your exhibit. Meyer suggests designating a booth staffer to retrieve the paperwork when your goods arrive, keep it safe during the show, and hand it off to the driver who picks up your goods for return shipment on the last day of the show. In addition to being subject to heavy fines and penalties, customs may not clear your shipment should you lose any of the paperwork.
Raising Suspicion
Though your shipments are theoretically always subject to a physical inspection by U.S. or Canadian customs agents, there is no hard and fast rule as to why agents on either side of the border choose to conduct a formal inspection on certain shipments and not others. "Honestly, it depends on the kind of day the agent is having and could even come down to which way the wind is blowing that day," Meyer says. "But U.S. customs agents are required to inspect a certain percentage of cargo crossing through any point of entry within the United States on any given day."
Even though physical inspection is about as rare as a Canadian playing in the NFL, there are some red flags that will pique an agent's interest in your shipment, including incorrect product descriptions and inaccurate weights listed for items. Be sure you or your customs broker checks and double-checks all documentation.
Cutting Customs Corners
Since taxes and duties are not assessed on goods that enter the country temporarily, there is a shortcut available that cuts down on the time spent waiting for customs agents to clear your trade show goods at the border. It is called the "border-to-show" privilege, and it is particularly valuable if you exhibit at several Canadian shows throughout the year. "The border-to-show privilege allows exhibitors to move their goods directly to the show floor without the complicated customs clearance at the borders and airports," Salas says. "With the privilege granted, the formal clearance takes place behind the scenes at the show site." That means you will have quicker access to all of your goods while your customs broker works with the CBSA to get the items cleared, leaving you time to snack on a Nanaimo bar or two. You or your customs broker can find information about how to request the border-to-show privilege for goods listed on your commercial invoice by visiting CBSA's Web site at www.cbsa-asfc.gc.ca.
Money-Back Guarantee
Most trade show and travel-related purchases made while in Canada are eligible for the Goods and Services Tax (GST) Rebate. Remind your booth staffers and other personnel attending the show to keep track of all of their receipts, as you will need them to claim your rebate. "The GST rebate includes things like convention and trade show supplies, audiovisual rentals, hotel rooms, and local transportation," Salas says. It does not, for example, cover a trip to the Hockey Hall of Fame. For a complete list of purchases that qualify for the rebate, as well as a rebate application form, visit the Canada Revenue Agency's Web site at www.cra-arc.gc.ca.
Show Business
The way Canada's labor unions are structured varies from city to city and province to province, so do your homework before the show. "In Toronto, for example, you will work with one union labor pool that will accommodate most of the services offered by the general services contractor," says Rob Halasz, director of sales for Freeman's Canadian division. "Outside of Toronto, the labor pools may or may not be unionized, so it is best to review each union situation with show management."
Canadian general services contractors may also be different than what you are used to at U.S. shows. Halasz points out that although Canadian general service contractors offer a complete package of services to their exhibitors, there are some selected services that may also be offered by individual companies, such as customs brokerage and electrical supplies. He suggests contacting a local supplier prior to the show for help with any last-minute details.
The Same, But Different
Though Canadian unions and exhibit companies are structured a bit differently than their U.S. counterparts, customs is the main obstacle that separates exhibiting in Canada from exhibiting stateside. Other than that, the show-site similarities between trade shows in Canada and shows in the United States are as hard to decipher as the front door in a Frank Gehry sketch. Everything from average booth size and the types of promotional items exhibitors hand out to the business-casual dress code and the language spoken on the show floor - even in francophone-filled Quebec - is the same.
When all is said and done and your booth is on its way back home, you'll leave Canada knowing that despite some significant customs-related obstacles, it is more similar to the United States than most Americans realize. e
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