WHAT EXPORTERS SHOULD KNOW
ABOUT CROSS-BORDER MOVEMENT

Since 9/11, the border between Ontario and our main export market to the south has become a lot less friendly in the understandable attempt to tighten security. This new climate is affecting all travellers, but none more so than the personnel of Ontario enterprises regularly visiting their customers in the U.S.

Help for New Exporters
Travelling to the US is one of the many topics covered in our New Exporters to Border States (NEBS) program. I recommend that companies looking at exporting to the U.S. take part in this valuable program to answer questions about cross-border movement as well as a host of other topics. (As the export development agency for the Government of Ontario, Ontario Exports Inc. makes the NEBS program available to new exporters on a regular basis. For more information, call 416-325-6659).

Entering under NAFTA
Under the North American Free Trade Agreement (NAFTA), Chapter 16 facilitates the cross-border movement of business persons who are citizens of member countries to NAFTA.

Chapter 16 recognizes several categories of business persons, primarily:

Business Visitors who plan to carry on any business activity related to - research and design, growth, manufacturing and production, marketing, sales and distribution, after-sales and service.

Professionals who plan to carry out professional activities for an employer or who contract to an enterprise located in a member country other than one’s own. These activities cover a broad spectrum - from accounting, computing and engineering, to the legal, medical, education and scientific professions.

As a business visitor, you have the right to enter the U.S. for the purpose of international trade. In the majority of cases, Canadian citizens can enter the U.S. and do business on a verbal B-1 visa by showing their proof of Canadian citizenship.

If you are a frequent business traveller to the U.S., it is useful to carry a letter from a third party in your company that explains the purpose of the trip. However, if you face repeated questions from immigration at the border crossing, it is worthwhile to get a 1-94 (record of entry document). This is the “hard copy” of the B-1 visa and can be issued for up to six months of use.

The TN (Trade NAFTA) visa is designed for specified professional occupations I referred to earlier - architects, engineers, etc. - and allows the holder to work and live in the U.S. for a specified company. For Canadian citizens, the TN visa can be processed at the border.

Yet another visa - the L-1 - covers the transfer of a Canadian executive to the U.S. to oversee the management of the Canadian branch operation. To obtain a L-1, a firm must incorporate in the U.S. This visa is good for a period of seven years and can be the catalyst for a fast track to the famous “green” card.

Temporary Importation of Goods
Another source of frustration for Ontario exporters to the U.S. are the rules governing the importation of goods. It is recommended that consideration be given to obtaining an ATA Carnet through the Canadian Chamber of Commerce, which can be issued from the Greater Kitchener Waterloo Chamber of Commerce office. This document simplifies customs procedures for the temporary duty-free admission of goods. This includes commercial samples, goods for presentation or use at a trade show, fair or exhibition or professional equipment. More information on how to obtain a Carnet is available at www.chamber.ca/carnet/, by emailing carnetkitchener@chamber.ca, or calling (519) 576-5000.

After-Sales Service
I recommend that you refer to the website www.dfait-maeci.gc.ca/nafta-alena/cross-en.sp to understand this often “grey” area of exporting to the U.S.  Prior knowledge and understanding will go a long way to smoothing after-sales service for you and your American customer.

This site also covers the rules for ‘third party service’ as it relates to an Ontario exporter contracting the after-sales servicing to a third party.

Finally, if you are continue to experience difficulty entering the U.S. on business, contact the federal Department of Foreign Affairs and International Trade’s NAFTA Temporary Entry help line at (613) 944-2046 or by fax at (613) 944-0058.

Bon voyage!

This article is submitted by Debbie Walker, Director, Community Export Development at Ontario Exports Inc., the export development agency of the Government of Ontario. She can be contacted by email at debbie.walker@edt.gov.on.ca.