Canadian Online Advertisement Boomed in 2005

2005 seems to have been the best year ever for online advertising in Canada. According to the Interactive Advertising Bureau of Canada (IAB), prospects based on Q1 2005 suggest an increase of 43 % over 2004 results, for a total of over 500 million dollars (CAD). 2004 in turn saw an increase of 54 % over the previous year, for a total of 364 million dollars (CAD). These figures handsomely beat Price Waterhouse Cooper’s estimates of 203 million dollars (CAD) and 172 million dollar (CAD) for 2005 and 2004, respectively.

_______________________________
Sources : Interactive Advertising Bureau of Canada

2006 Looks Even Better for Online Advertising

According to Heath Terry, an analyst at Credit Suisse First Boston, spending for online advertisement should increase by 32 % in 2006 and reach close to 17 billion dollars (USD). A significant portion of these expenses will target text-based advertisement and key-words reservations from search engines such as Google and Yahoo!.

Also, video and animated advertising (possibly comprised of audio and interactive content) should see an increase of 66 % in 2006, according to Terry Heath. This advertising segment has become very popular lately because the production costs of these videos/animations can amount to only one tenth that of regular 30-second TV advertisements, all the while reaching a very focused target audience.

_______________________________
Sources : Bloomberg

Quebec Exports Grew in October

Quebec’s international exports grew by 4.2 % in October 2005 over the previous month, and grew by 4.5 % for the first 10 months over the same period in 2004, according the Institut de la statistique du Québec.

The goods that experienced the most significant growth in October were telecommunications equipment and material, airplanes, office machines and material, airplane engines, and semi-finished wood products. At the other end, meat, copper and wood pulp fared the worst.

Quebec’s exports to the US increased by 10 % in October 2005. This is mainly due to the sale of airplanes and, to a lesser degree, to the sale of wood pulp and airplane engines.

In spite of a slowdown in October 2005, Quebec’s international imports grew by 10.9 % during the first 10 months over the same period in 2004.

_______________________________
Sources : Institut de la statistique du Québec

The Importance of the Certificate of Origin

by A. Cicciarello, cga

The certificate of origin is a requirement that ensures that only those merchandises admissible by virtue of the rules of origin may benefit from the Free Trade Agreement.

The certificate of origin therefore determines that a product is admissible for free trade. Delivered by the exporter, this document guarantees that product information is standardized and that the product is eligible within the context of the Free Trade Agreement.

Because the information contained in the certificate of origin involves a company’s credibility, it is therefore of utmost importance that the information be accurate, especially the description of the exported goods. Only merchandise satisfying the criteria stipulated in the Free Trade Agreement between Canada and its partners, i.e., the United-States, Mexico and Chile, may appear on this document. There are exceptions applicable to products imported from countries that are not part or the Agreement. However, in order to qualify, these products must undergo certain transformations before being advantageously exported to member countries.

The certificate may cover a shipment, a product, or a range of products, and its validity may not exceed a one (1) year period. Shippers are encouraged to regularly review these certificates in order to ensure their validity, as products are continually added to, and removed from, the Free Trade Agreement.

Although it is the importer’s responsibility to obtain certificates of origin in order to avail itself of preferential customs tariffs, the document’s accuracy remains the exporter’s responsibility.

Failure to comply with the rules governing origin may entail a retroactive review of an exporter’s record, the payment of undeclared customs tariffs, and penalties relating to the severity of the infraction. Such situations usually have a negative impact on the offending exporter’s bottom line and almost always tarnish its export record with the Ministry.

Exporters must also obtain certificates of origin from third-party Canadian suppliers when the latter’s goods are being added to the final exported product. Considering these documents’ importance in achieving full customs compliance, it is recommended that they all be signed by authorised company representatives.

When in doubt, it is always best to have the validity of your certificates of origin checked by a customs broker or consultant.

______________________________
Reproduced by permission of the author: A. Cicciarello, cga, Cicciarello et Associés, cicciarello@qc.aira.com