Applicant's Guide: CanExport GAC-Led Delegations

CanExport Global Affairs Canada (GAC)-Led Delegations is a funding program that supports Canada's trade diversification efforts. It provides funding to eligible small and medium-sized enterprises (SMEs) participating in select trade missions and delegations led by GAC's Trade Commissioner Service.

This new funding stream of the CanExport SMEs program is designed to enhance the support provided to SMEs through trade missions and delegations. It is also streamlined to the specific needs of these events. All CanExport SMEs program requirements remain the same, except:

• eligible applicants must have been selected after applying to a GAC-led trade mission or delegation as outlined in the Eligible GAC-led delegations section of this guide
• to facilitate the application process, only expenses essential for participation in the trade mission or delegation - such as travel and trade show costs - are eligible for funding
• considering the narrowed eligible activities, there is no funding minimum

This funding stream is being operated as a pilot (which will expire no later than November 2029) and as such will cover a limited number of eligible trade missions or delegations. During the pilot, the program will evaluate the stream's performance and consider recipient feedback.

CanExport GAC-Led Delegations is delivered by Global Affairs Canada as a complement to Canada's Trade Commissioner Service (TCS), and in partnership with the National Research Council of Canada Industrial Research Assistance Program (NRC IRAP).

To be eligible, your small or medium-sized enterprise must:

• be a Canadian SME selected to participate in an eligible GAC-led delegation
• be established in Canada
• be for-profit
• be an incorporated legal entity, limited liability partnership (LLP), or cooperative in Canada
• have an activeFootnote * Canada Revenue Agency (CRA) business number

• have between 1 and 500 full-time equivalent (FTE) employees
• have between $100,000 and $100 million in annual revenue declared in Canada during its last complete tax reporting year (or during the last 12 months for monthly and quarterly filers)

All other forms of business relationships and structures are not eligible. This includes:

• sole proprietorships
• limited partnerships (LP)
• third-party representatives, including:
  • entities representing the interests of a third party, such as agents, promoters, sales representatives, and consultants
  • trading houses and export brokers (unless for the agriculture and agri-food sector)
  • distributors
  • wholesalers acting as an intermediary
• franchisees (only the franchisor is eligible)

The CanExport GAC-Led Delegations program reserves the right to refuse applications from corporate entities that cannot demonstrate meaningful economic ties to Canada, even if they meet the above-stated eligibility criteria. For example, your application should clearly and specifically explain how your product or service is of Canadian origin, and if not, how the export of your product or service under your proposed CanExport GAC-Led Delegations project brings value to Canada (e.g. components of the product manufactured in Canada).

We identify companies by their Canada Revenue Agency (CRA) business number:

The applicant must have legal signing authority to apply for funding and then enter into a legally binding agreement with the Government of Canada should the application be successful.

A company applying on behalf of another entity identified by a different CRA business number, is not eligible. For example, a parent company is not eligible to submit an application on behalf of its subsidiary. A consultant is not eligible to submit an application on behalf of its client.

In addition, the applicant must legally own the goods and services intended for export.

In their applications, businesses must identify up to 5 target markets. These are the countries where applicants wish to develop new export business. Under CanExport GAC-Led Delegations, a target market is typically the location of the trade mission or event.

Target markets should be related to the applicant's international business development strategy

The selection of target markets should be explained, including how it relates to the applicant's export business case (consult How we evaluate applications" for more information).

Target markets must be new

To help determine whether the markets are considered "new", CanExport GAC-Led Delegations looks at previous sales by the applicant in that market. Therefore, a market is eligible if:

• during the applicant's last complete tax reporting year (or last 12 months for monthly and quarterly filers), sales for that market were less than $100,000
• sales generated in the target market were greater than $100,000, then sales in the target market must be less than 10% of the company's total combined domestic and international sales

Other target market conditions

A country is not eligible to be a CanExport GAC-Led Delegations target market if any of the following apply:

• Canada has imposed economic sanctions on the market
• a sister or affiliated company offering the same products and services is already established in your target market (the applicant must clearly demonstrate in their application how they differentiate themselves from other companies already established in the market)

Destination

It is not necessary for target markets and destination countries to be the same. At times, travel to a destination other than a target market may be required for business development purposes. When target markets and destinations are not the same, the applicant must explain how the activities proposed to take place in the destination country will support business development in the target market(s).

Only certain types of business expenses may be supported by CanExport GAC-Led Delegations funding. These eligible expenses are described below and fall within the two categories listed.

For an expense to be valid:

• the expense must be directly linked to participation in eligible missions or delegations for the purpose of developing export opportunities
• the project activity and the related expense must take place within the project start and completion dates specified in a company's funding agreement
• the project activity must fall within an approved category listed in a company's funding agreement and must be directly linked to one or more approved target markets

In all cases:

• payments must be made using a corporate or business bank account or credit card; if personal credit cards are used for travelling expenses, the company must reimburse the employee using a corporate or business bank account
• refundable GST, taxes, duties, and other items must be removed from the cost of the eligible expense
• tips and items paid with reward points must be removed from the cost of the eligible expense

Any activities undertaken and associated costs incurred before a project has been approved are at the applicant's own risk. The CanExport GAC-Led Delegations program accepts no responsibility for expenses already incurred by an applicant if an application is refused.

If an applicant is unsure about eligibility of any expenses, please contact us at canexportdelegations@international.gc.ca before undertaking the activity and incurring the expense.

The CanExport GAC-Led Delegations program reserves the right to approve funding that is lower than the amount requested by the applicant. The program may adjust in respect of activities (or target markets) and eligible amounts for a variety of reasons, including alignment with assessment criteria.

Category A: Travel for participation in an eligible delegation or mission

The CanExport GAC-Led Delegations program may support international travel expenses for attending trade events to meet with key contacts from target market(s) and/or conduct market visits.

We assess the international travel expenses by:

1. Travel duration. We evaluate travel duration based on trade event dates.

   1. Applicants must specify the travel dates, travelers, and planned activities for each trip.

      Per diem consists of a total daily allowance of $600 to cover accommodation, meals, and incidentals for each eligible traveler participating in a trade event.

   2. Travel is payable only as part of a roundtrip from Canada and can include travel between a project's target market(s) and/or destination(s).
2. Number of participants. Travel expenses may be claimed for up to 2 travelers per trip. To be eligible, travelers must be legally employed in Canada and on your payroll.

Funding is determined based on the estimated costs provided in the application. Applicants should provide reasonable cost estimates. High-cost estimates must be justified thoroughly and may affect the approval of the application. Receipts for expenses (e.g. accommodation, air travel) should be retained for 5 years for audit purposes.

Travel-specific definitions

Airfare is a refundable roundtrip in economy or premium economy, departing from Canada to the approved destination, directly or with a layover. It must be booked and paid for after the project begins and completed before the project ends. Reward program points are not allowed. Airfare from countries other than Canada may be considered if costs are lower.

Higher class fares are typically not allowed but may be approved if lower than the cost of economy or premium economy on a direct flight.

Ground transportation relates to the use of a ride-share service, taxi, or public transportation in the approved destination country. It also includes vehicle rentals and associated costs for gas, parking, and tolls, during the stay in the approved destination. Vehicle rentals must be made via a reputable vehicle rental company and at reasonable costs.

Per diem consists of a total daily allowance of $600 to cover accommodation, meals, and incidentals for each eligible traveler participating in a trade event. Eligible per diem includes the day before the trade event begins through the day after trade event ends. The program will not fund additional days, even if they relate to business in the target market.

A mandatory visa fee is the cost to obtain a visa required for travel to an approved target market or destination.

Eligible expenses include:

• airfare
• seat selection for a flight to an approved target market or destination
• baggage fees for checked luggage or excess baggage
• ground transportation in the approved destination
• travel to and from the traveler's home or office to the airport
• airport parking
• per diems
• costs related to obtaining an electronic travel authority
• mandatory visa fee

All other travel-related costs are ineligible and cannot be claimed.

Category B: Participation in trade events (non-travel related expenses)

CanExport GAC-Led Delegations may support non-travel related expenses associated with participation in eligible trade events listed in Section 1 of this guide. Expenses for participation in trade events that are not listed in Section 1 are ineligible.

Funding is limited to Canada-based employees who are legally employed and on the company payroll.

Eligible costs include:

• Event attendance by a maximum of 2 eligible travelers per event. The trade event must be named and have confirmed dates.
• Participating as an exhibitor at a trade event including:
  • registration for space or a booth
  • on-site booth design, assembly, and installation
  • booth rental
  • utilities like electricity and internet access
  • rental of business card scanners or audiovisual equipment
  • liability insurance
  • when membership or sponsorship is required for participation in an event, eligible expenses apply only to the lowest applicable tier or class (additional documentation is required)
• Shipping and handling costs for international shipping and transportation of items associated with event participation such as printed information materials, booth pop-ups, and products or prototypes, including return to Canada. Prototypes must be returned to Canada to be eligible for funding (costs for shipping prototypes that are not returned to Canada will not be reimbursed). For companies in the agri-food sector this includes the shipping of food samples.

All other costs related to trade events are ineligible and cannot be claimed.

Budget estimate template

The below template may be used as a guide to ensure that sufficient information is provided for the program to properly assess proposed expenses. However, it is not a requirement to follow this exact format.

• Name and title of traveler(s):
• Airfare: Economy or premium economy roundtrip from Canadian City A to trade mission destination City B + roundtrip from trade mission destination City A to trade mission destination City C (if applicable) (x2 if two travelers)
• Seat selection and Baggage fees: If not included in the airfare estimate (x2 if two travelers)
• Ground Transportation: Fare to and from the airport
• Per diem: $600 x number of days (from the day before trade mission events officially begin until the day after trade mission events officially end) (x2 if two travelers) Note: If not participating the entire duration of the trade mission, please estimate accordingly.
• Mandatory visa fee or Electronic Travel Authority: If applicable (x2 if two travelers)
• Total:

If participating in a GAC-led delegation that includes trade show participation costs, the following budget items may also be included in addition to those listed above:

• Trade show registration fee (x2 if two travelers):
• Exhibition fee (if applicable):
• Return shipping and handling costs:

Example of a completed budget estimate:

• Name and title of traveler(s): Jane Doe, President & CEO and John Smith, VP International Sales
• Airfare: Premium economy roundtrip from Calgary to Sydney ($2500) + roundtrip from Sydney to Brisbane ($250) = $2750 x 2 = $5500
• Seat selection and Baggage fees: (already included in the airfare estimate)
• Ground Transportation: $100 (to and from the airport)
• Per diem: $600 x 8 days - 15 to 22 February (from the day before trade mission events officially begin on February 16 until the day after trade mission events officially end on February 21): $4800 x 2 = $9,600
• Mandatory visa fee or Electronic Travel Authority: $30 x 2 = $60
• Total: $15,160

Ineligible expenses

Except for the Category A and Category B expenses listed above; no other expenses are eligible under CanExport GAC-Led Delegations. Further, the program will not support delegation participation costs if the primary purpose in participating relates to investment attraction, research and development, or the production and distribution of products and services.

The regular CanExport SMEs program may be able to support other expenses to further your international business development goals. For more information, please visit Section 5 of the CanExport SMEs Applicant's Guide.

Core activities:

Refer to the essential tasks and operations that are central to the company's business model and success. These activities are directly related to the production and delivery of the company's primary products or services.

Destination:

A country where the project activities take place. The "target market" and "destination" may be different.

Legal signing authority:

The owner(s) or an employee with the authority to sign on behalf of the applicant company. The individual's contact details must be properly indicated in the company's online account profile and cannot be that of a consultant.

Project:

The ensemble of activities for which a company requests funding in its application. It should not be confused with a company's broader expansion plans.

Related companies:

Includes but is not limited to parent company and subsidiaries, franchises, sister companies, and affiliates.

Target market:

A country where a company intends to do business. It is not a continent, geographical area, or group of countries. Activities in the application must be directly linked to the target market.

If you have further questions on the program, please contact canexportdelegations@international.gc.ca.
Please contact NRC IRAP (nrc.canexport.cnrc@nrc-cnrc.gc.ca) if you have questions about:

• the funding agreement
• reporting
• claims

If you are having difficulty with our online application system or technical problems related to your account, please contact nrc.canexport-help-aide-canexport.cnrc@nrc-cnrc.gc.ca.