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Manual for Successful Exporting to CANADA.

This Manual is planned as a guide to all aspects of the export requirements for exporting to Canada and anywhere else.

This guide includes: how to demonstrate your collection to foreign buyers, how to “digitize”

your collection in the most professional and time efficient way, how to introduce your

company and its policies and procedures, how to handle the question of samples.

It also includes packaging and labeling regulations and examples as well as the documents

required by both governments.

I hope this information is useful.

Phil Zwibel

January 2017

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Item # Page # Contents 1 3-6 How to Introduce your products 2 7 How to Introduce your company 3 8 Samples 4 9 Sizes 5 10 Shoe Marking 6 11 Shoe Box and carton marking. 7 12-13 Export packing/Pallets. Anti mold, Silica

packets 8 14 Standard Documentation required for Canada,

Summary 9 15-16 Instructions on your commercial

invoice/Packing list 10 17 Invoice description for footwear 11 18 Canada Customs Invoice 12 19 Certificate of Origin 13 20 Incoterms 14 21-2 Documents required By Indonesia for export 15 23 THE RULES 16 24 The Product Calendar for Canada 17 25 Final Thoughts

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1. HOW TO INTRODUCE YOUR PRODUCTS and COMPANY THIS IS YOUR MOST IMPORTANT SELLING TOOL, DOMESTIC or EXPORT !!!!!

Preamble:

a. Demonstrating your product to overseas buyers has never been easier.

While you should be aware of WHO you are sending this information to, (not someone who is your competitor), this should be done quickly in response to export enquiries.

RULE #1: ALWAYS ANSWER EMAILS THE SAME OR THE NEXT DAY.

b. Therefore, IT MUST BE READY and up to DATE. Having this information in an organized way will also be useful in ANY and ALL SALES ACTIVITIES; whether for domestic sales, export sales to Canada or exports to any other country.

c. I STRONGLY SUGGEST you prepare two product files: one with pictures and reference numbers and the SECOND version where the prices are added. (POWERPOINT IS THE BEST OPTION FOR COLLECTION PRESENTATION.) d. My best time saving suggestion is that as products are developed and finalized a picture should be taken.

1. Once the picture is in your computer software (A), crop away the extra white spaces (B), and ADD the reference right on the picture (C). Then SAVE the picture as the reference. 2. This way you will always be able to find that item in any folder it is saved in….AS WILL YOUR CUSTOMER. While this is a little extra work in the beginning. It will save time and confusion later.

A B C

Original image, reduced by 50%

CROPPED to remove white background

With Reference

e. When all product pictures are taken, they should be organized by last, or by construction or by category. For example, all Sandals, then all Flats.

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These are examples of excellent line sheets, organized by last/sole. (These include prices, but there are versions without prices.)

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And, This is an excellent example of a LINE SHEET FROM Indonesia. There are NO PRICES. Each Style Has a name and/or a reference number. Each Color is noted The sizes available are noted. While this is a professionally prepared catalogue, your line list does not need to be this fancy. BUT IT MUST INCLUDE ALL THIS INFORMATION

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2. COMPANY INTRODUCTION EXAMPLE of Company Introduction and Terms and Conditions template

a. Company Name: PMZ Footwear b. Address:

11 Koven Place, Toronto, On. M2J 3H5 Canada

c. International phone: +1-416-828-0877 d. Contact person: Phil Zwibel e. Position: CEO f. Email: phil@pmzinternational.com g. Website: www.pmzinternational.com h. Our product: Men’s casual and sporty footwear i. Our Brand(s): SPARX j. To open an account we require an initial order of: 200 pr. k. Our minimum quantity per style and color: 36 pairs l. Lead time from Order confirmation to delivery ex-factory: 45 days m. INCOTERMS: FOB Jakarta n. Shipping agent: We recommend ABC Forwarding, Jakarta 021-123-4567, xyz@abc.com, but you can use your own freight forwarder. TO BE NEGOTIATED BETWEEN YOU And THE BUYER.

RULE #2. FOB PORT is the most standard and convenient for international buyers. Order processing procedure: (the actual procedure is up to you, but this is a standard practice and is presented as an example.) You choose to be paid by letter of credit.)

But, under no circumstance should you export goods without a guarantee of payment of some kind.

a. Upon receipt of a customer order, we will send a confirmation to the customer. b. This confirmation will be accompanied by a request for a deposit of XX% to be sent to

us. c. Upon receipt of this deposit, production will be scheduled. d. Upon completion of the order, we will request the balance of payment (YY%) to be

remitted to us. e. Upon receipt of this remittance, we will ship the goods.

Our Bank Details: (This information is optional and can be sent with the confirmation, once a customer has placed an order.)

a. Maybank b. Transit No; 12324 c. Account: 987654321 d. Swift code: BC777888

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3. SAMPLES

Samples are the life blood of any selling company.

The best companies make their samples

freely available to their customers, both existing and ESPECIALLY new.

There are three basic ways you can handle sample costs with new customers. a. Charge $XX per pair of samples. This can be either the actual selling price or something either higher or lower. It is up to you to decide. or b. Charge $XX per pair of samples. These costs will be deducted from your first order. or c. For the first season, do not charge for samples, as you want your new customer to have the best chance at success. IF no orders come, then charge for the samples BEFORE any second request for samples is accepted. Sample shipping: 1. Samples have no value IF AND ONLY IF they have a ¼ inch hole drilled through the

sole, so that they cannot be worn and truly have NO VALUE. This is called “mutilated”.

2. Mutilated shoe samples can be sent with a Pro-Forma invoice, NOT a commercial invoice, and you must say: “Samples are mutilated and have NO commercial value.”

3. Check with your buyer as to how they want their samples.

4. If they are NOT MUTILATED, then they have a value and that must be declared on a commercial invoice. The commercial invoice must be completed in full. (see # 9 below).

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4.. SIZES

1. Your price list should always include the sizes available in your product.

2. THERE IS NO UNIVERSAL CONVERSION for sizes!

3. Indonesian sizes MAY NOT have the same measurement of standard EU sizes.

4. The best way to make sure your customer will accept and be able to sell your shoes, is to supply 2-3 sizes of each product they are buying or, ALL SIZES, and then get written approval.

5. Most Canadian buyers will accept European size grading and marking.

6. The standard size range for men is 40-45, sometimes 41-46 or variations

7. The standard size range for women is 36-40, sometimes 35-41 or variations.

8. You should be aware that you may have to make the larger sizes for export.

RULE #3 ALWAYS, REPEAT … ALWAYS CHECK THE FITTING AND GET WRITTEN APPROVAL FROM YOUR

BUYER.

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5. Shoe Marking.

1. All shoes must be marked with the size and Made in Indonesia. The standard place to put this information is on the inside quarter lining, or inside tongue.

2. It must be legible and permanent (NOT ON A REMOVABLE STICKER).

3. Customers may require other information, such as their style name/number, so please pay attention to the specifications on each order.

4. It is suggested, though not required, that you use this International pictogram that

describes the material of the upper, lining and sole as below.

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6. Guidelines for Shoe Box and Carton Marking

1. Shoe box marking:

a) The shoe boxes must be marked, “Made In Indonesia”, usually on the box bottom. b) Box ends must be marked with the style number (as per order), the color, and the

size as per the customer order. c) The Color may have to be in both French and English. CONSULT WITH YOUR BUYER

for CLEAR INSTRUCTIONS; Example

STYLE COLOR SIZE Kareem Black/Noir 40

2. Carton Marking: All shipping cartons are to be marked as below. This is the same information

as you will use on your Packing list, see section 8 TO BE PRINTED ON 2 LONG SIDES MASTER CARTON MARKINGS: EXAMPLE:

(BUYER”S NAME or abbreviation) Ship to : SEAR’S Canada ADDRESS 222 Jarvis St. CITY, Province Toronto, ON POSTAL CODE K1P 2Y8 Customer PO#: 456-90876 Style: Kareem Color: Black Sizes;

39 40 41 42 43 44 45 46 1 1 2 3 3 2 2 1

Made In Indonesia Net Weight; (NW) 2.4Kg Gross weight: (GW) 3.1Kg Measurement: 65x44x25 Carton no : ___4____ of _____100___ total

RULE#4. Your buyer may supply special packing, labels instructions.

Once an order is received, ASK THIS QUESTION; DO YOU HAVE ANY SPECIAL LABELS, TICKETS OR PACKING

INSTRUCTIONS?

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7. Export packing:

Preface: Export goods going to Canada, will require some extra steps.

These COULD include the use of pallets, shrink wrap, weights and measurements.

SMALL SHIPMENTS MAY BE EXEMPT from this. Please ensure you are aware of this requirement from your buyer. 1. The use of pallets MAY BE necessary. The use of pallets helps to:

a. To prevent pilferage, b. To simplify handling c. To maximize space during shipment d. To meet global standards of handling used by local trucks, containers, air freight, Canadian trucks, and loading docks.

This why palletizing and shrink wrapping are important:

4. This is a pallet: a. The nominated freight forwarder should supply them to you. b. There may or may not be a cost involved for securing the pallets you require. c. You may have to calculate this into your costs. d. Shrink wrap comes in a roll and can be applied manually.

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5. The most common Pallets are 1.2M x 1.2M. a. Your pallets may be different sized.

b. The important thing is to stack the cartons so there is NO OVERHANG extending

beyond the edges of the pallet.

c. The most common height for the top of the stacked cartons is 1.5 meters. d. This may be different, so you ask the freight forwarder involved for his maximum

acceptable height. The use of pallets MAY BE necessary. If you are using wooden pallets, you will need a certificate from the pallets manufacturer saying that he is following the normative ISPM15 regulations. In The Documents required By Indonesia folder is a file “ISPM 15-2009” that will explain that wooden pallets must be certified.

Once again, rely on the Freight Forwarder for help in this area. To protect your product from mold in transit, most exporters and importers use either silica gel packets;

To, more current and cost effective: Stickers that are applied inside the shoe box.

Either way, your product NEEDS MOLD protection.

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8. Standard documentation required to export to Canada;

The necessary documents:

1. Commercial invoice: 2 originals (known as C/I or CCI) (Item 9, page 15)

2. Packing list: 2 originals, (known as P/L) (Item 9, page 16)

3. Invoice Description for Footwear: 2 originals (IS NOT OBLIGATORY. IT IS USED AS AN AID TO THE SELLER. (Known as IDF) (Item 10, page 17)

4. Certificate of origin, 2 originals (known as COO, or B239) (Item 12 Page 20)

5. Bill of lading/cargo receipt from the nominated/designated freight forwarder: 2 originals (known as B/L)

You will have to identify each style that you are exporting with its appropriate HS CODE to 6 digits. If you need help with the HS CODES, please ask your buyer. Instructions:

a. Commercial Invoice: Your commercial invoice should match in all details with the customer’s order and your confirmation. If you need help with the HS CODES, please ask your buyer. b. Packing List: The packing list is a carton by carton summary of the goods being shipped. c. Invoice Description for footwear. (optional) See below*

d. Certificate of origin:

Certificate of origin: Please check items in field 7 and 9 as to the proper answer. e. Bill of Lading:

The Bill of lading will be prepared by the nominated freight forwarder, please get in touch with them WHILE the goods are being made.

*Invoice Description for Footwear: If you need help with this form, please ask your buyer.

RULE #5: WHEN IN DOUBT, ASK YOUR BUYER

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9. Instructions on how to complete your Commercial Invoice and Packing List

ALL of these “Descriptions” should be included in your Commercial Invoice and packing list.

Field Description Your input

1 Vendor/Exporter/originator Your full company name, address

2 Date of Shipment Date of Shipment

3 Commercial Invoice Number Your Commercial Invoice number

4 Ship To The name and full address of where the goods will be shipped to

5 Sold to: The buyer’s full name and address, (ship to and sold to may be different)

6 Country of transshipment, if any

The freight forwarder will advise if the goods will be transshipped and through which country

Country of origin Where the shoes were made: INDONESIA

8 Transportation Mode (air or sea)

This information will come from the buyer/freight forwarder

9 Conditions of sale and terms of payment

Payment method and INCO terms as agreed to with the buyer

10 Currency of Settlement This will be US Dollars.

#11-18 could be in an EXCEL file

11 Number of Packages Number of shipping cartons

12 Specification of Commodities Kind of package, style numbers and marks, gender, sizes and type of footwear, HS code to 6 digits.

13 Quantity Number of total pairs

14 Unit Price Price per pair

15 Total Number of pairs X prices

16 Total weight Show both net and gross weight in KG

17 Invoice Total Total amount paid or is payable

18 Your Invoice # See # 3 Above

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This is an example of a commercial invoice/Packing List Our Invoice: # 54367 Ship to; XYZ Shoe Co. 123 Main St. Toronto On. J4K 4M9 Marks and numbers

# of pieces

Description Color Sizes HS Code Qty Price (US$)

Amount (US$

1-50 #1-10 10 Ladies

leather shoes: Daisy

Black 5-10 6403-59 100 $25. $2500

#11-20 10 Ladies leather shoes: Daisy

Red 5-10 6403-59 100 $25. $2500

#21-30 10 Ladies leather shoes: Rosie

Black 5-10 6403-59 100 $24. $2400

#31-40 10 Ladies leather shoes: Rosie

White 5-10 6403-59 100 $24. $2400

#41-50 10 Ladies leather shoes: Joy

Black 5-10 6403-59 100 $23. $2300

Totals 50 500 $121,000

Net Weight: 2250 KG, Gross Weight: 3000KG.

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10.Invoice Description for Footwear

This form will help you and Canada Customs determine the proper HS code.

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11. Canada Customs Invoice This is the link to this file: http://www.cbsa-asfc.gc.ca/publications/forms-formulaires/ci1.pdf

a. ALL DETAILS on your commercial Invoice and the Canada Customs invoice MUST match.

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12. Certificate of origin: (B239)

This is the link to the original file: http://www.cbsa-asfc.gc.ca/publications/forms-formulaires/b239-eng.pdf

a. ALL DETAILS from your commercial Invoice, the Canada Customs invoice, and

the Certificate of Origin MUST match.

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13. Standard INCOTERMS

Understanding these terms is essential, IN CASE your buyers wants other and

FOB terms. This is the link to the original file: https://www.google.ca/search?hl=en&site=imghp&tbm=isch&source=hp&biw=1290&bih=925&q=incoterms+2016&oq=incoterm&gs_l=img.1.0.0l10.4194.6091.0.8282.8.5.0.3.3.0.199.553.4j1.5.0....0...1ac.1.64.img..0.8.561.m4FfOuamUCI#imgrc=zAhWw5YrQrVPVM%3A

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14. Documents and Procedures for exporting from Indonesia. Procedure:

This is the link to the original: http://djpen.kemendag.go.id/app_frontend/links/7-export-guide

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The step by step guidelines for exporting;

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15. The RULES

RULE #1 Always answer emails the same or the NEXT day. (even if the answer is, “I will advise in 2 days”.)

Rule # 2 The most desired and common export “Incoterm” is FOB. You are better equipped and knowledgeable about local transport than

most buyers.

Rule #3 ALWAYS, repeat, ALWAYS get the fitting confirmed by your buyer. Get written approval from your buyer.

Rule #4 Your buyer may supply special packing, labels instructions. Once an order is received, ASK THIS QUESTION;

Do you have any special labeling, ticketing or packing instructions? Rule #5 When in doubt, ask your buyer. Rule #6 ALWAYS ANSWER EVERY EMAIL THE SAME OR THE NEXT DAY.

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16. The Calendar for the Canadian Shoe Business

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17. Final Thoughts

1. YOU ARE THE SELLER. Act like you want your suppliers to act towards you. Give your customers want they want when they want it.

2. Be ACTIVE, RESPONSIVE and POSITIVE. 3. Compete with your service, your speed, your responsiveness, your attitude,

your quality, your design and your willingness to change.

ALWAYS BE SELLING