Exporting from Canada: A step-by-step guide for first-time exporters

Exporting can feel complex, especially if you’re entering international markets for the first time. Beyond making a sale, exporting means understanding regulations, contracts, logistics, payments and compliance in foreign markets. 

This step‑by‑step guide outlines the key steps to exporting from Canada, helping you build a stronger foundation before you ship your first order. 

Before you can export goods, you need an exporter business number. Most Canadian businesses already have a GST/HST number, but this number must be registered for import and export program account purposes through the Canada Revenue Agency. 

Once activated, your business number becomes your exporter number and is used on customs and trade documents. 

Every country has its own legal and regulatory framework governing imports. As an exporter, you’re responsible for understanding which rules apply to your product, your contract and your method of delivery. 

International conventions may govern certain transactions, but ownership, liability and enforcement can still vary by country. Before exporting, research: 

• Local import laws and standards 
• Contract law considerations 
• Product‑specific regulations 

These factors can affect when ownership transfers, who carries risk and how disputes are resolved. 

Incoterms, short for international commercial terms, define the responsibilities of buyers and sellers in global trade. They clarify who pays for shipping, insurance and duties, and where risk transfers during delivery. 

Created by the International Chamber of Commerce (ICC), Incoterms must be clearly stated in your sales contracts. Choosing the wrong term, or failing to specify one, can lead to disputes, delays, or unexpected costs. Understanding how Incoterms work is essential to setting accurate prices and managing risk. 

Getting paid is one of the biggest risks in international trade. Exporters must balance competitiveness with payment security. 

One common option is a letter of credit, which guarantees payment through the buyer’s bank, provided all shipping and documentation requirements are met. While letters of credit protect both parties, they require precision and expire after a set period. 

In higher‑risk markets or transactions, exporters may also look for ways to strengthen payment security. 

Protect your receivables with trade credit insurance

When buyers can’t provide a letter of credit, trade credit insurance can reduce the risk of non‑payment due to default or bankruptcy. It also helps protect your cash flow while allowing you to offer more competitive payment terms. 

This is particularly useful when entering new markets or working with unfamiliar buyers. 

Exchange rates can shift between the time you negotiate a sale and the time you receive payment. These fluctuations can significantly impact profit margins. 

To reduce exposure, some exporters use foreign currency accounts or financial tools that help stabilize cash flow and protect your profits. Planning for currency risk is an important part of export pricing and contract negotiation. 

Cargo insurance protects your goods against loss or damage while in transit. Coverage levels vary depending on the policy and the shipping arrangement set out in your Incoterms. 

Cheaper insurance options may only cover total loss, while more comprehensive policies can cover partial loss or theft. Exporters should also be aware that carriers often limit liability, which may not fully reflect the value of your goods.

Accurate documentation is essential for clearing customs and getting paid. Common export documents include: 

• Commercial invoices 
• Proforma invoices for non‑commercial shipments 
• Certificates for controlled or regulated goods 
• Certificates of origin for certain markets

Your documents should clearly describe the goods, quantities, prices and payment terms. Some countries require additional permits or certifications, particularly for food, agricultural, or controlled products. 

Exporting is a process—not a single transaction. As your business grows internationally, your needs will evolve, from financing and insurance to market intelligence and compliance support. 

Export Development Canada (EDC) offers tools, insights and expert guidance to help Canadian companies move from their first export sale to long‑term global growth.