International trade plays a important function in Canada ‘s economic system. Although the United States remains Canada ‘s biggest trading spouse, the latter ‘s trade dealingss with several Asian and European states have besides improved in recent old ages. This shows that there is a great chance to make international trade with Canada because it is already exerting it and welcoming other foreign companies. A important part of Canada ‘s natural resources, such as oil, gold, Ni and U, are exported chiefly to the United States. Agricultural merchandises, including wheat and other grains, are besides exported to the US, Europe and East Asia.A Canada ‘s chief import spouses are the United States, European Union, China and Mexico. This North American state imports machinery, equipment, motor vehicles, parts, electronics, chemicals, electricity and lasting consumer goods. The Canadian industry is dominated by its services section, which includes retail, fiscal services, existent estate and communications, , which contribute over 70 % of the state ‘s GDP. The instruction, wellness, touristry, hello tech and amusement industries are some of the other major subscribers to the state ‘s economic growing.
The authorities organic structure responsible for guaranting conformance with Canada ‘s trade and boundary line statute law and ordinances is the Canada Border Services Agency ( CBSA ) ( Foreign Affairs and International Trade Canada, 2010 ) . All the paperss that are important for the imports into Canada are submitted to the CBSA for the blessing and the release of goods. The CBSA has the right to deny the entree of the goods into Canada or inquire for more information if found that the information is non plenty. There is another party involved in the import and export of goods to and from Canada which are other authorities sections ( OGDs ) . “ The CBSA assists other the OGDs in the disposal of their statute law as it relates to the importing, in-transit motion, and exportation of assorted trade goods. ” ( Foreign Affairs and International Trade Canada, 2010 ) . The goods that are capable to review by any section of the OGD can non be released until all paperss are lawfully produced and released by the OGD. An illustration of an OGD is the Department of Foreign Affairs and International Trade ( DFAIT ) .
It is the duty of the importer to guarantee that all licenses and particular certifications related to importing the goods or services is available. The importer is required to maintain records of merchandise or service types imported, their monetary values, the measures, and the topographic point of beginning. This information should be kept in Canada in difficult transcript or electronically for 6 old ages.
Evaluation ( Livingston International )
“ This is the procedure of finding the value for responsibility of an imported point, and the value for responsibility is the sum that the CBSA calculates which is owed on imported goods. ” The value for responsibility is the monetary value of the good, which is the merchandising monetary value, converted to Canadian currency with some add-ons and tax write-offs. Additions are:
Sums paid for royalties
Licenses fees
Selling committees
Tax write-offs are:
Sums paid for cargo
Brokerage fees
However, free goods or samples sent from the U.S. provider have value for imposts that must be recorded and these are exclusions that do non follow the above regulation.
Determining Transaction Value ( Livingston International )
“ The dealing value is the monetary value paid for a good or service, as adjusted when sold for export. It represents the sum of all payments made, or to be made by the importer, whether straight or indirectly, to the benefit of the marketer. ” The commercial value of imported goods should be calculated foremost, in order for the value of responsibility to be calculated, but this is a complicated undertaking because many accommodations to the existent merchandising monetary value are normally important.
Goods & A ; Servicess Tax ( GST )
In Canada, the goods and services revenue enhancement is a federal revenue enhancement of 5 % on most good and services imported for domestic ingestion. Some goods are exempted from the GST like basic food markets, prescription drugs and exports. The import responsibilities and revenue enhancements imposed by Canada vary depending on the merchandise being imported and the topographic point of beginning. Harmonizing to the North American Free Trade Agreement, any goods manufactured in Mexico or the U.S. are exempted from any import revenue enhancements by the Canadian imposts. In add-on, any good that does non hold seeable grounds of where it is produced is besides exempted from import revenue enhancements under this understanding. Many goods from Chile and Costa Rica besides fall under a free trade understanding. However, freedom conditions apply harmonizing to where the good is manufactured and non where the good is purchased. All non-exempt goods require the GST to be paid on them, which is calculated as 5 % of the Canadian dollar value of the goods, including responsibility and excise revenue enhancement. In add-on to this, importers pay a revenue enhancement depending on which state they are turn uping known as the provincial gross revenues revenue enhancement. To cognize the exact revenue enhancement that should be paid on the type of good an importer is importing, one should mention to the Customs Tariff paperss hosted by the Canada Border Services Agency. “ The Customs Tariff is based on the World Custom ‘s Organization ( WCO ) Harmonized Commodity Description and Coding System ( HS ) . ” ( Foreign Affairs and International Trade Canada, 2010 ) .
Import chance
Harmonizing to the “ Canada vulnerable to H2O deficits: Report ” , the industries of natural resources are devouring a large measure of H2O, which accounts for 84 % of Canada ‘s gross H2O usage go forthing the state vulnerable to H2O scarceness. “ There is an overall deficiency of capacity and expertness across the state to efficaciously pull off H2O resources, ” said the study. “ Between now and 2050, Canada ‘s population is expected to increase by 25 per cent, the Canadian economic system is predicted to turn about 55 per cent by 2030, and clime alteration is anticipated to increase temperatures, alteration precipitation forms, and increase the frequence of utmost conditions events such as inundations and drouths, ” said the study. “ These emphasiss will impact Canada ‘s water partings and make new force per unit areas on the long-run sustainability of our H2O resources. ” ( M.Souza, June 2007 ) . One solution for this job could be the usage of engineering, such as the location of hydro-electric dikes at favorable sites, such as near rivers and this engineering is an import chance into Canada.
Canada Exports
Canada is one of the few invariably stable states in all facets of authorities and economic system. It maintains high signifiers of ordinances and regulations in all facets of bureaucratism. That is why concern in Canada is extremely regulated every bit good as keeping a flow in its procedural work. Although Canada does export merchandises to a limited figure of states, it does nevertheless hold a huge per centum of its GDP in the fluidness of exports ( about 45 % ) . Merchandises that Canada exports range from a assortment of finished merchandises such as motor vehicle trim parts to raw stuffs such as rough oil and aluminium. The job that has occurred though is that Canada has had a huge bead in imports along with exports due to the recession back in 2009.
The office of Foreign Affairs and International Trade Canada is the administering -body that maintains and handles exports that leave Canada. The Trade Controls & A ; Technical Barriers Bureau ( TID ) is a section within the office that supports the Exports and Imports Act ( EIPA ) . This section of the office is responsible for authorising the exportation of stuffs and goods to other states. Some factors are maintained by TID in order to guarantee the stableness and protection of domestic markets such to “ forestall the supply of military goods to states that threaten Canada ‘s security. ” These facets are of import when sing perforating the Canadian market since they guarantee its stableness.
Measure 1:
To guarantee that the merchandise does non go against the EIPA approved lists that consist of controlled merchandises that are maintained by the TID. The Import Control List ( ICL ) , the Export Control List ( ECL ) , and the Area Control List ( ACL ) .
“ The ICL by and large comprises a list of goods, some of which are merely controlled for certain states of beginning ; all goods contained in this list necessitate an import license. The ECL is a list of goods merely ; all goods contained on this list besides require an export license. The ACL is a list of states for which export licenses are required to export any and all goods. ”
Measure 2:
Analyze merchandise exported and look into that it is non a portion of the controlled exported merchandises.
aˆ? Agricultural merchandises: Refined Sugar, Sugar-containing Products and Peanut Butter
aˆ? Fabrics and Clothing
aˆ? Military, Strategic Dual-use Goods
aˆ? Nuclear Energy Materials and Technology
aˆ? Missile, Chemical or Biological Goods of Non-proliferation Concern
aˆ? Softwood Lumber, Unprocessed Logs and Certain Other Forest Merchandises
aˆ? Assorted Goods including Goods of U.S.-origin, Roe Herring and Certain Items with Medical Value
aˆ? All Goods Destined for Countries on the Area Control List: Myanmar.
Measure 3:
Acquire an Individual Permit that authorizes the person in executing the act of exporting a merchandise. Then geting an Export Permit Regulations ( EPR ) to allow the treating the merchandises and acknowledging them as valid for export.
The process taken behind this license is as follows:
Applications
Application reappraisal period
Validity periods for multi-destination licenses
Export Control Compliance Plan
A little fee is so charged depending on the nature of the export i.e. state and existent merchandise.
Measure 4:
Misdemeanors are to be considered in order to avoid punishments and censuring. These misdemeanors are considered if control lists ( mentioned above ) are non considered e.g. exporting stuff to Cuba
Export chance
Canada can export computing machine hardware and its IT direction expertness in the signifier of educated direction squads that help put up concerns abroad. Canada is extremely developed in the IT chances and that is why there will be a high factor of competition due to Canada ‘s developed governmental system. These rivals are in touch with varied market sections related to net page design, package development and internet security. This nevertheless allows for a possible working force that does non necessitate preparation and development of people to keep certain places. That is why there are certain advantages for the development for IT professional services in Canada, since it already contains many factors such as “ package inventions ” which will let for that market to turn.
Some of these advantages are:
1. A big labour force around 17.95 million who are qualified workers and do non necessitate preparation Sessionss
2. An already existing market is available for the IT and communications which allows room for safe incursion in the markets.
3. The bead due to the recession will let development and investing for growing, and the recession is one of the chief grounds that exports dropped massively.4. Concentrating on certain parts in Canada such as Quebec and British Columbia will let for fast acknowledgment of merchandise, since IT services are available at that place in other competitory companies e.g. IBM.
Kenya Imports
Kenyan concerns have long been over-regulated. Price decontrols, remotion of foreign exchange and import controls, every bit good as limited deregulating of the grain sector, have become the trademark of the Government of Kenya trade liberalisation enterprise, which has strongly enhanced the Kenyan concern environment. To heighten the enterprise, the Government of Kenya has embarked on rationalisation of import responsibilities, consistent lowering of duties and decrease of licensing demands.
The main establishment that governs the motion of imports into Kenya is the Kenya Revenue AuthorityA ( KRA ) . The KRA was established on 1st July 1995 through an Act of Parliament as a cardinal organic structure for the disposal and enforcement of all the Torahs associating to gross under the general supervising of the Minister for Finance. Its end is to advance conformity with Kenya ‘s revenue enhancement, trade and boundary line statute law and ordinance. It administers the Customss and Excise Act, East Africa Customs Management Act, Value Added Tax ( VAT ) Act, Income Tax Act and the Traffic Act. The chief ground KRA was established is to:
Improve co-operation and information sharing among gross sections.
Eliminate bureaucratic controls and present efficient and effectual systems and processs.
Introduce better working conditions, better wage, an optimum compliment of staff and enhance unity.
Import Regulations are one of the things that are purely upheld by the KRA. There are close to 12 major ordinances that are followed diligently. The chief five of them being:
1. Import Declaration Form ( IDF )
An IDF must be applied for and obtained from the Kenya Revenue Authority for any Commercial importing.
2. Quality Inspection
The Kenya Bureau of Standards has appointed two agents viz. INTERTEK and SGS for the Pre-export Verification of Conformity review of the trade goods.
3. Customss Import Entry
The undermentioned paperss are required for Customs Import Entry Purposes
1. Original Commercial Bill
2. Packing List
3. Original Bills of Ladling – Two Original
4. Original Certificate of Conformity
5. Original Test Result/Report/Analysis
6. Original Certificate of Origin for Preferential Trade Area Partners e.g. COMESA.
7. Import Declaration Form and the Receipt
8. Insurance Debit Note
9. Importers Declaration ( C52 )
These paperss will enable Electronic Registration of The Customs Entry. The registered entry will be passed for eventual release of the goods upon:
A· Payment of Import Taxes
A· Supplying a Security Chemical bond
4. Chemical bonds
Some Importings can be entered under a Security Bond alternatively of payments of Taxes. The Bonds could be provided to cover:
A· The motion from the Port of clearance into a Customs Bonded Warehouse
A· The motion from the Port of clearance into a Customs Export Processing Zone bonded warehouse.
5. Customss review and rating
All imports with an FOB value transcending $ 5000 must undergo pre-shipment review ( PSI ) for quality, measure and monetary value, and be issued with a Clean Report of Findings by one of the two Government of Kenya appointed review bureaus ( presently Cotecna Inspections S.A. and BIVAC International )
Import Opportunity
There is presently no important import of ICT merchandises and services. However there are several start-ups who have successfully tapped into the outsourcing industry, chiefly call centres, concern procedure and informations entry, and this country seems to hold great possible for growing in the medium and long term. To lucubrate on the country of supplying call centres, we are non traveling to construct call centres in Kenya itself, nevertheless we will utilize Global Brand ‘s call centres already established in Egypt to be a sort of outsourcing. When any company has a hotline this does n’t intend that it has its ain call centre, nevertheless Global Brands for illustration the biggest supplier of call centres in Egypt hosts call centres for so many companies. This means that when person calls any Egyptian company, for illustration, the adult male replying the phone is non an employer in that company but is of GB. Therefore, one can name different companies & A ; happen the same individual replying as it ‘s all done by GB, all what happens is that the call centre adult male has a list of companies & A ; each incoming call is shown coming from which company. Therefore to sum up, all what we will make from this service is that we will market GB ‘s call centre in Kenya to allow Kenyan Companies depend on GB which is a concern for GB. This means that when a Kenyan adult male will name a Kenyan company ‘s call centre the adult male who is replying will be replying him from Egypt – GB ‘s call centre. This is due we have skilled & amp ; inexpensive labours who have perfect linguistic communications, there will be no cost for naming from Kenya & A ; replying from Egypt call centre as it ‘s done via VOIP – Voice Over IP which is fundamentally through the cyberspace as if it ‘s from Skype which is wholly free. Last support, is that Vodafone UK ‘s call centre is based in Egypt due to the same grounds & A ; benefits which supports why this will be successful thought. The figure of call centres in Kenya are really few therefore there will be no competition & A ; easy for us to come in the market in this country & A ; command it.
Kenya has reasonably good developed IT substructure to back up the IT initiatives and networking necessary for development. Opportunities exist to the private sector and the possibilities for networking are unlimited as a liberalized environment is germinating with private sector engagement in the proviso of technological services.
Communication on the other manus is still new but turning fast though, much of the market is still undeveloped. Today the state is in the procedure of deregulating the telecommunication sector, which is still mostly under authorities monopoly.
The cost of telecommunication in Kenya is low-cost, the substructure is bettering, and Internet services are good. The usage of traditional methods of communicating should be minimized and the usage of Internet-based communicating enhanced.
Cardinal Competitors Telecommunication Services in Kenya
The national public telecommunications company, KPTC, is responsible for all national and international telecommunication services in the state. At the minute, value-added web services are the sole sphere of KPTC, except computer-mediated communications including Internet and cellular communications.
The late formed Communications Commission of Kenya ( CCK ) is the regulative authorization for the telecommunications sector. The national operator, Telkom Kenya, is to be privatized shortly, and it is expected that a 49 per centum portion will be sold to a strategic spouse
Today Telkom Kenya remains the exclusive national telecommunications operator and supplier of basic telecommunications services. It besides operates the national Internet anchor and international Internet gateway, JamboNet, and the Safaricom GSM nomadic service.
There have nevertheless been restricting factors to implement new information engineerings.
These factors have included, but non been limited to:
1. A deficit of financess to run into the costs of the new engineering and preparation ;
2. A deficit of calculating accomplishments ; and
3. A deficiency of well-articulated vision sing what they wish to accomplish through engineering.
Therefore, there is a demand to actively promote private investing, as it appears significantly more productive than public investing. The inadequate IT acceptance and usage in Kenya, coupled with political intervention in the running of the establishments, have had far-reaching deductions and this negates the premier aim of the choice of the service to be provided to Kenyan market.
Kenya Exports
Kenya ‘s export sector contributes 30 % of the state ‘s Gross Domestic Product. Kenya aspires for faster economic growing through increased export led activities.A A Economic recovery attempts hence target an one-year volume growing of 10 per cent in the export sector. The state promotes an export led economic system which contributes to the betterment of life styles in the state. The chief exports of the state all lie in agribusiness & A ; gardening. With 75 per centum of all the 35 million dwellers of Kenya employed or involved in the agricultural sector, which represents 24 per cent of Gross Domestic Product ( GDP ) . A 3rd of Kenya ‘s green goods is exported doing it the pillar of Kenya ‘s economic system. Agriculture, hence, offers plentifulness of investing chances in engineering transportation, substructure development, conveyance, irrigation, processing, value adding, packaging and storage.
Kenyan export ordinances are by and large broad and incorporate few export limitations. The state allows export of all points except for the followers which are considered either of aesthetic value to the state or to hold national security importance: military equipment and weaponries ; old-timers and plants of art ; bullion and coins ; archives ; unrecorded animate beings other than farm animal and pets ; wood wood coal and timber ; tusk, rhino horn and conveyance equipment and automotive vehicles ( e.g. armored autos and armored combat vehicles ) . Export of these points must have anterior mandate by the relevant Kenyan authorities ministry before an export licence is issued.
Kenya ‘s chief authorization on exports is the Export Processing Zones Authority ( EPZA ) .The EPZA is a province corporation established by the Government of Kenya through an Act of Parliament for the publicity and facilitation of export-oriented investing and the development of an enabling environment for such investings. Over the old ages, the Export Processing Zones Program has registered impressive growing. This growing has enabled the plan to accomplish its aims of employment creative activity, enlargement and variegation of exports ; addition in productive investing, coevals of foreign exchange net incomes, technological transportation and creative activity of linkages with the imposts district.
Kenya inaugurated her Export Processing Zones plan in 1990 as portion of the Export Development Program ( EDP ) being undertaken by the Government to transform the economic system from import permutation to a way of export led growing. EPZs are designed to further incorporate Kenya into the planetary supply concatenation and pull export-oriented investings in the zones, therefore accomplishing its economic aims. The Tax Remission for Export Office ( TREO ) is another plan designed for intermittent imports for export production. In Global Brands ‘ peculiar sector, Kenya offers decreased revenue enhancements on computing machine hardware and package. Besides a major factor in back uping ICT in Kenya is the fact that the authorities removed all licensing demands on information and broadcast medium services.
Exports must besides go through a few sanctioned trials and gain a certain certification to hold the right to be exported out of the state. The Kenyan authorities ensures the exporting companies ‘ merchandises or goods meet the ordinances and quality demands of Kenya before cargo by doing them obtain the necessary Certificate of Conformity ( CoC ) from the authorized PVoC Agent for all merchandises subject to the PVoC programme.
Taxation overview
Corporate Tax is usually set at 30 % .it is set at 37.5 % for subdivisions of foreign companies. Taxs have many signifiers nevertheless such as Personal Tax and its set around the country of 10-30 % . The per centum varies as it follows the progressive thought. Where the more you make the harder you get taxed whereby if you make more money you are taxed more. The VAT ( value after revenue enhancement ) is calculated at 16 % , nevertheless for IT equipment and parts perfectly no revenue enhancement is charged.
The Kenyan authorities besides Withholds revenue enhancement of 5-30 % on royalties, direction fees, dividend, involvement and rent.
Investors who set up in the EPZA ‘s zone acquire a considerable revenue enhancement cut, besides investors who list 30 per centum of their company ‘s portions on the stock exchange. With larger investings the Kenya Investment Authority will frequently dicker single contracts with the authorities. There are no limitations on repatriation of after revenue enhancement net incomes. Kenya subscribes to a figure of International acts protecting international investors and supplying model for the colony of any trade and investing differences.
The Kenyan ICT industry has been liberalized, and for many countries licensing is a meagre enrollment procedure.However, one important ordinance for anyone in demand of licensing is still that the licensee must hold at least 30 per cent local ownership.
In the financial twelvemonth ( 2006/07 ) , the Kenyan authorities introduced a nothing evaluation of IT equipment and parts in regard to both responsibility and VAT. Unfortunately there are no other particular revenue enhancement cuts for ICT investings. Mobile telephone use attracts a 10 per cent excise responsibility, which is added to airtime and subscription together with VAT, go forthing the effectual revenue enhancement at 26 per cent.
Export Opportunity
Mecer, a South African computing machine maker, has set up its regional assembly works of desktop computing machines in Kenya. This works splits its end product down the center and exports half of it to other states in the East African sweep. Finally a batch of imported ICT equipment, particularly nomadic phone French telephones, is re-exported to the adjacent states – nevertheless with no value add-on taking topographic point in Kenya. There ‘s a strong chance for trade in hardware and package with east African states precisely like Mecer is making.
To rank the import and export chances, it is as follows. We decided that ranked as 1 is the import chance of Kenya which is outsourcing call centres from Egypt to Kenya to function Kenyan concerns. We chose this ranked as one because based on an interview with the HR director in Global Brands, Mrs. Heba Rostom, she stated that outsourcing is one of their alone services that they provide and they have been concentrating on it recently and would wish to spread out more on this facet. Ranked as 2 is the export chance of Kenya which is exporting IT package and hardware from Kenya, and we chose this as our 2nd best option because turn uping a works in Kenya would be comparatively inexpensive to turn uping it in Canada since labour is cheaper and resources there are much cheaper every bit good. Then, ranked as 3 is the Export chance of Canada, which is once more the same as the chance of exporting from Kenya, but Kenya is a better chance since turn uping there is much cheaper. Last, ranked as 4 is the import chance of Canada and its ranked last because importing engineering to make with H2O modesty system is rather distant from the existent services Global Brands are supplying.
Beginnings
Kenya Investment Authority-http: //www.investmentkenya.com/index.php? option=com_content & A ; task=view & A ; id=12 & A ; Itemid=26
CIA World Factbook – Unless otherwise noted, information in this page is accurate as of November 3, 2010
Export Promotion Council- hypertext transfer protocol: //www.epckenya.org/
Export Processing Zones Authority- hypertext transfer protocol: //www.epzakenya.com/
World Bank Country Data Table 2003- Kenya
Beck, Thorsten and Fuchs, Michael ( 2004 ) . Structural Issues in the Kenyan Financial System: Bettering Competition and Access. World Bank Working Paper 3363. Washington DC.
Danish Federation of Small and Medium-Sized Enterprises, ( 2006 ) . Business chance survey within the it and teleccommunication industry in Kenya ( 978-87-7667-766-4 )
www.epzakenya.com/
Stephen M. Mutula, ( 2001 ) “ The IT environment in Kenya: deductions for libraries in public universities ” , Library Hi Tech, Vol. 19 Iodine: 2, pp.155 – 166
www.kra.go.ke/
hypertext transfer protocol: //investincanada.gc.ca/eng/industry-sectors/software.aspx
hypertext transfer protocol: //www40.statcan.gc.ca/l01/cst01/gblec02a-eng.htm
hypertext transfer protocol: //www40.statcan.gc.ca/l01/cst01/gblec04-eng.htm
hypertext transfer protocol: //www.exportcanada.com/dynamic.aspx? cid=1
hypertext transfer protocol: //www.international.gc.ca/controls-controles/about-a_propos/index.aspx
hypertext transfer protocol: //www.international.gc.ca/controls-controles/export-exportation/crypto/Crypto_Intro.aspx? lang=eng
hypertext transfer protocol: //www.economywatch.com/world_economy/canada/export-import.html
hypertext transfer protocol: //www.ehow.com/list_6860845_canadian-import-duties-taxes.html
hypertext transfer protocol: //livingstonintl.com/document_library/Import_to_Canada_Final_eng.pdf
hypertext transfer protocol: //www.canadabusiness.ca/eng/105/172/929/
hypertext transfer protocol: //canadaonline.about.com/od/personalfinance/g/gst.htm
hypertext transfer protocol: //www.ehow.com/list_6720692_canadian-duties-imports.html
hypertext transfer protocol: //www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/menu-eng.html
hypertext transfer protocol: //www.canada.com/technology/Canada+vulnerable+water+shortages+Report/3165676/story.html ( M.Souza, June 2007 ) .
