CanExport SMEs: Ineligible expenses

Ongoing, operational activities, or activities that are considered core to the applicant's business and not specific to pursuing export opportunities in a new target market are ineligible.

Examples of ineligible expenses are broken down into themes below and include, but are not limited to:

International travel and trade shows

• Travel within Canada.
• Participation to a trade event or conference in Canada.
• Costs for the creation, hosting and/or organisation of a private event/workshop or other such event by your company in the target market.
• Staff salary
• Events that primarily consist of knowledge-sharing, or keynote/panel speaking through invitation.
• Travel expenses incurred in markets and/or destinations not approved in your funding agreement.
• Travel expenses for employees already residing or based in the Target market(s).
• Long term rentals or leases, or portions of long-term leases or rentals (ex. car, accommodation…).
• Travel costs for individuals that are not owners and/or employees of the Canadian company (such as consultant, interpreter, outside legal counsel, foreign partner representative, etc.).
• Reinstatement or refund of reward program points (e.g. Air Miles, Aeroplan, World points, or any other barter system).
• Cell phone charges such as international roaming charges or data plans, and Wi-Fi fees.
• Costs related to obtaining a passport or vaccinations.
• Expenses related to the use of a personal vehicle (employee, owner or company vehicle).
• Expenses related to the rental of luxury vehicles.
• Insurance (such as travel, medical, dental, rental or car insurance).
• Costs of hospitality (including bar tabs) entertainment and gifts.
• Participation in any event covered by Agriculture and Agri-food Canada's Canada Pavilion Program.
• Event sponsorship (unless it is a requirement for participation in the event).

E-Marketing/Promotional activities

• Funding for long term advertising campaigns e.g. yearlong marketing campaigns.
• Giveaway items (pens, mugs, umbrellas, tote bags, t-shirts, etc.).
• Production of samples.
• Traditional advertising (ex. print ads or radio ads).
• Expenses relating to lobbying, public relations, policy development and influence, including fees for influencers and key opinion leaders.
• Website application, maintenance, domain purchase, online management software tools, and hosting fees.
• Fees to access online marketplaces (ex. Alibaba, Amazon, TMall).
• Subscriptions and fees to access e-commerce platforms (ex. BigCommerce, Shopify, 3dcart, WooCommerce, Volusion, PrestaShop, Weebly, SquareSpace, Magento and Wix).
• SaaS marketing tools.
• Crowdfunding projects.
• Any expenses related to branding, labelling, or package design.
• Any expenses related to direct mail campaigns e.g. cold calling, telemarketing, email campaigns.
• Podcasts.
• Costs associated with webinar hosting or webinar platforms.

Intellectual Property (IP) protection and certification

• Application fees for certification or protection of IP within Canada
• Expenses related to testing, examinations or inspections required for certification
• Any product development, production or distribution expenses
• Maintenance and renewal fees for IP protection
• Expert/legal advice related to IP disputes
• Development of a Canadian IP strategy
• Application for insurance of intellectual property
• Certifications that are not specific to the target market such as HIPAA, ISO, SOC

Other

• Expenses related to preparing an application for CanExport SMEs or submitting claims
• Capital costs and office supplies (such as computers, office equipment, audio-visual equipment, office space, supplies and business cards)
• Any expenses related to acquiring capital assets, including real estate.
• Overhead expenses (such as warehousing, long-term legal services, utilities and photocopying)
• Employee salaries, labour or wages and commissions
• All costs that could be deemed as subsidizing a product's selling price, therefore contravening Canada's international trade obligations.
• Activities designed to attract investment
• Goods and Services Tax (GST), including any GST share of the Harmonized Sales Tax
• Any refundable portion of taxes, duties or other items for which a refund or rebate is available (ex. carbon taxes and credits).
• Expenses for activities taking place outside of the project phase of the funding agreement
• Expenses related to non-specified activities, such as those marked "To Be Confirmed"
• Registration or legal fees to incorporate a subsidiary company in a Target market
• Retainer fees or advanced fees paid to a lawyer or consultant – the Program will only reimburse for services rendered.
• Honoraria for professional services
• Training costs
• Costs associated with developing or building a prototype for target market(s)
• Expenses related to an in-market representative
• Any expenses related to testing, examinations or inspections

The CanExport SMES program reserves the right to determine the eligibility of expenses.