On November 2016, Canada-Indonesia Trade and Private Sector Assistance Project (TPSA) launched a guidebook for Indonesian MSMEs to Export to Canada.

This guidebook is produced by TFO Canada and in partnership with the Ministry of Trade of The Republic of Indonesia. In most cases some MSMEs question themselves “Why should we export?”, they might think that their domestic market is enough. Should they really think it’s enough? Or should they reach higher grounds?

This article will be divided into series and will further discuss how to export to Canada.

Why Exporting? and Why Canada?

Successful exporting requires time, resources, and commitment. These are what might be holding back some companies in exporting. However, there are several reasons to why exporting can take your enterprise to the next level.

Increasing sales and revenue becomes one of the main reasons due to the market expansion abroad, and when your product reaches a bigger market outside of Indonesia, this also gives you an advantage at the national market where your product has gained more trust.

When your product has reached a bigger market and have gained more credibility, your enterprise will gain higher profits, higher economies of scale, improving global competitiveness, reducing company vulnerability, and enhancing national and regional development.

Out of all the countries in this world, why Canada? First of all, Canada is an import-oriented market where it depends heavily on imports to develop their economy and fulfill their demands. Canada is the 11th largest import market in the world averaging a 5% imports annually.

Second, Canada is a very large market with 31% of the GDP is represented by imports.

Third, Canada has a diverse consumer taste meaning that it is very potential for variety of items imported to meet national demands.

Forth, Canada has a very strong economy. Fifth, increasing exports from South East Asia countries to Canada. Sixth and final, Canada and Indonesia have a strong partnership.

What Opportunities Are Ahead?

These are the list of products having great potential in Canada:

Agri-Food

• Unroasted coffee
• Pepper
• Coconut oil
• Coconut sugar
• Palm sugar
• Artificial honey

Clothing

• Coats, jackets, and blazers
• Dresses
• Shirts
• Footwear

Others

• Wooden furniture

How is the general process?

Generally the export process is divided into four important phases:

• Export Plan
• Quote or Pro Forma Invoice
• Purchase Order or Contract
• Export License, Commercial Invoice, Certificate of Origin, Packing List, Required Permits, Proof of Tariff Payments, Bill of Lading or Air Waybill
• Final Payment

Further details will be elaborated in these following articles:

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Source: Canada-Indonesia Trade and Private Sector Assistance Project. (2016). A Step-by-Step Guide for Indonesian SMEs to Export to Canada citation.