A Guide to Exporting to the Canadian Market
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- Spencer Porter
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From this document you will learn the answers to the following questions:
What type of products are regulated by the Canada Agricultural Products Act?
What is a major demand for safety and what?
Who uses import declaration forms to clear foreign goods?
Transcription
1 A Guide to Exporting to the Canadian Market Introduction Canada has national, provincial and municipal regulatory requirements regarding goods and services entering the country. The prime considerations for the approval of products which are to be exported to Canada are human health, environmental and product safety. Regulations cover a wide range of areas which include content, packaging, labeling, transportation, shipping sample quantities, bulk handling, storage, distribution and the actual and intended use of the foreign goods or services entering the market. Special privileges are granted to US and Mexican suppliers with respect to certain goods and some regulations may vary according to the country of origin of the products or services based on the specific country situation or regional agreements. General Requirements All goods entering Canada must be accompanied by import declaration forms which are used by Canadian Government inspectors for clearance of foreign goods. Exporters interested in engaging in exporting to Canada must ascertain from their buyer/distributor (s) the respective forms to be completed to ensure ease of entry to the Canadian market. It is imperative that exporters review all regulatory information prior to shipping their products. Canadian Standards The development of the Canadian National Standards is benchmarked against current and potential international standards. The main factors that influence Canadian standards are: Mass Production Labour Specialization Demand for interchangeable parts Globalization Manufacturer s concern about liability and litigation 1 Consumer pressures for easily understood information Public demand for product safety and quality control. Consumer concern about technical compatibility and demands for precision in product measurements. The Standards Council of Canada (SCC) helps export agencies from developing countries to
2 build their own standardization system and meet requirements set out in international trade agreements. For additional information consult the website The SCC-accredited standards development agencies in Canada are the Canadian Standards Association, Underwriters Laboratories of Canada, the Canadian General Standards Board and Bureau de normalization du Quebec (for the French speaking region of Canada). The four types of standards developed by these organizations to govern product development of foreign and domestic products are: Performance Standards These are set after simulating the performance of a product under actual service conditions. Applicable mainly to food safety, fuel economy and the design of packaging for transporting hazardous goods. Prescriptive Standards These identify product characteristics such as material thickness and requirements such as type, dimension and address durability features including the porous nature of storage containers used for flammable products. Design Standards Applicable where specific designs or technical characteristics of a product is necessary such as oil pipelines. Management Standards These are used to regulate quality and environmental management system processes. Assessment of exports are monitored and verified for compliance with Canadian standards at three levels. Theses are done through the following: Certification Organizations (CO s) which conduct on-site audits, take samples, and test products and services in order to issue CO marks attesting that they conform to international Standards. Testing Organizations which perform tests according to recognized procedures and document their findings as to whether a product meets the appropriate standard. Management System Registrars who issue certificates to foreign companies meeting ISO standards. Laws, Regulations and Controls Since French is the official language of Quebec any order form, invoices, packages, labels or contract associated with products intended for retail must be written in French. It is advisable that all exporters become familiar with the Canadian legal requirements before producing or shipping to the Canadian market. All labels must contain information that is truthful and not misleading to the consumer. The main agency which enforces the relevant trade laws are Canada Border Services Agency (CBSA), the Canadian Food Inspection Agency (CFIA), Health Canada and Industry Canada. Important Legislation and Requirements Which Govern all Products Inclusive of Exports to Canada The Canada Agricultural Products Act: Regulates dairy products, eggs, fresh fruit and vegetables, honey, livestock, poultry and related processed foods. Details of this Act can be found at; ( Consumer Packaging and Labelling Act: Packages must meet international specification packages must be manufactured, filled and displayed so that consumers are not mislead as to quality or quantity of product in the pack- 2
3 age. Standard size containers are required for certain prepackaged products, with some products sold by weights, drained weight or volume. Details of this Act can found at; ( Customs Tariff Applicable to imported products, not services. Details of tariffs and customs duties can be found at; ( Environmental Legislation: The three acts are the Canadian Environmental Assessment Act, the Canadian Environmental Protection Act 1999 and the proposed Species - At- Risk Act. These govern foreign agricultural products and threatened endangered species. Further details of these Acts can be found at; ( Export and Import Permits Regulation: Products affected by border controls are outlined in the Import Control List and which includes particular textiles and clothing, certain agricultural products, steel products and weapons. Information on the import & export permits and the control lists, which provides additional details of controlled and restricted goods - ( index.html): and ( respectively. Other regulations are covered under the following: Fish Inspection Act and Regulations: These are used to regulate seafood originating from a foreign country import licences are required and federal authorities at Fisheries and Oceans Canada must be notified about the type, quality, origins of fish imports prior to arrival of the border. Also, because of the high rate of inspection exporters are required to cover rejection insurance costs. Details of this Act can be found at; ( Food and Drugs Act and Regulations: These apply to food, pharmaceuticals, health products, cosmetics and therapeutic devices. Health claims regarding the ability of products to assist in the treatment or cure of specific diseases such as alcoholism, cancer, heart diseases and obesity are strictly prohibited. If nutritional claims for a food are made then additional requirements apply. For example, if a product is advertised on the label as low-fat, then its protein content must be specified; or if it is advertised as low-sodium, the potassium content must be noted; or if fresh fruits are depicted on a frozen pie, information on any flavourings used must be provided. Further details on food and drug regulations can be found at; ( 3 Health Canada: There are new regulations related to food labels, in particular the presentation of nutrition information and messages related to diet claims or allergies..further detail is available at;
4 ( e.html) N: B Regulations on meats and meat products were not covered as imports of fresh and frozen meat and meat products are prohibited from Canada for health and sanitary reason. Approval of plants by the Canadian federal authorities is necessary for such exports. The Meat Inspection Act is applicable in those cases. For further detail consult; ( rege.shtml). Import Documentation The range of documents required for exporting includes the following: Bill of Lading or Airway Bill: This contract for carriage issues by the ocean or air carrier is also a receipt. It gives title to the goods and signed copies are proof of ownership. Certificate of Origin (Form A): CBSA requires a certificate of origin to establish where the goods were manufactured and to determine the applicable rate of custom duty. Commercial Invoice: This is used by the exporter to charge the goods to the Canadian purchaser. Exporters use their own forms, but the contents should include standard information such as date of issue, name and address of buyer and seller, contract number, description of goods, unit price, number of units per package, total weight, and terms of delivery and payment. Export permits: Permits such as those for endangered species are issued by the exporter s home government. Inspection Certificates: Sanitary and other certificates are required for some types of products entering Canada, including plants, seeds, animals, pharmaceuticals, nursery stock, and meat. Packing List: This is sometimes required to supplement a commercial invoice. Pro-Forma Invoice: This delivered cost estimate is usually required for a successful sale. Tariff Rates Canada Border Services Agency (CBSA) can assist in determining the duties on the exported goods (what the importer has to pay). A thorough description of the goods is required, including ten-digit Harmonized System Codes including value and origin. Tariff details are available at ( Remedies and Penalties Canada s Special Import Measures Act regulates the application of countervailing duties on 4 imported goods that cause injury to Canadian industry through subsidies.
5 Product Quality and Style Canadian buyers are very meticulous and demand very high quality products. Careful attention should be paid to overall workmanship and quality of detailing. Failure to comply with export regulations (imports to Canada) can result in possible seizure of goods rendering the product(s) unfit for sale in Canada. Packaging Attractive, appropriate and appealing retail packaging is important. It is important to conduct simple desk research to ascertain the relevant information. The Canadian buyer should be able to assist with such information. Experts in Canada can provide design, artwork and translations where necessary. Environmentally Friendly Packaging is encouraged; green packing is an emerging trend, and increasing demand for bio-degradable, recyclable and re-usable packaging are urging manufacturers and packaging companies to develop innovative alternatives to the traditional plastic shopping bags and excessive packaging. Bio-degrades from corn for example has entered the market place in recent years. Labelling Bilingual labeling is required with extremely limited exceptions such as test marketing. Exporters are to ensure that the Canadian buyer provides the information required for the label and approves all drafts prior to printing final label. In general, packing cases must be labeled in English and French with the following information: Product name and style number; colour of product (if applicable); weight of case in kilograms; the number of items per container; size of box; Country of origin; name and address of manufacturer or exporter. Retail labels for packaged food products must include information such as the common or generic name of the product; net quantity and list of ingredients, name and address of the dealer or distributor; number and size of servings; and best before date, except for fresh fruits and vegetables. 5
6 The Jamaica Exporters Association (JEA) devel- Was established over forty years ago to promote the growth and opment of the export sector. Its membership represents a range of sub sectors including fresh produce, processed foods, apparel, building products, chemicals, cosmetics, electronics, furniture, giftware and allied services. The JEA is; COMMITTED TO NATIONAL DEVELOPMENT THROUGH EXPORTS We invite exporters and related businesses to come in and talk with us. We are constantly adding new services and we re always anxious for new input. Funding for this document was provided by the Private Sector Development Programme (PSDP), a joint initiative of the Government of Jamaica and the European Union. The views expressed in this publication are those of the author and do not necessarily reflect those of the PSDP or the EU. 6
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