Hardware and Hand Tools 2010

Hardware and Hand Tools 2010
Introduction.................................................................................................................................... 2
Scope of the Report ................................................................................................................. 2
The Canadian Market .................................................................................................................. 3
Imports ....................................................................................................................................... 7
Trends and Opportunities ..................................................................................................... 10
Trade Practices........................................................................................................................... 11
Competition ............................................................................................................................. 11
Trade Shows ........................................................................................................................... 11
The Buyer ................................................................................................................................ 12
Quality and Inspection ........................................................................................................... 14
Price ......................................................................................................................................... 15
Packaging and Transportation ............................................................................................. 15
Labelling................................................................................................................................... 16
Distribution................................................................................................................................... 18
Import Regulations ..................................................................................................................... 20
Tariffs ....................................................................................................................................... 20
Taxes........................................................................................................................................ 20
Importing .................................................................................................................................. 20
Inspection ................................................................................................................................ 21
Antidumping ............................................................................................................................ 21
Regulations ............................................................................................................................. 21
Tips for Exporters ....................................................................................................................... 23
Sources of Information .......................................................................................................... 24
Other Useful Internet Sites ................................................................................................... 24
Trade Shows ........................................................................................................................... 25
Publications ............................................................................................................................. 25
This report is distributed subject to the condition that it shall not, by way of trade or otherwise, be lent, sold, hired out, or otherwise
circulated without TFO Canadas consent, in any form of binding or cover other than that in which it is published.
All information provided in this document is based on the best available at the time of preparation and is offered without responsibility on the
part of TFO Canada. The reader is advised to check with TFO Canada for updates and clarification through www.tfocanada.ca or by writing to
the address provided in the Annex. This report has been produced with funding from the Canadian International Development Agency.
Trade Facilitation Office Canada, 2010
Introduction
TFO Canada offers a series of product-specific market

reports to exporters in client countries identified by the
Canadian International Development Agency. This list
of countries and the reports are available through TFO
Canada or on request by writing to TFO Canada. They
are also distributed through export promotion
organizations and Canadian embassies in the client
countries as well as through client country embassies
accredited to Canada.
If you have at least one year of export experience, you may be eligible
to receive TFO Canadas free promotion of your product offer to
Canadian importers via the monthly Import Info E-Newsletter and
online searchable database. If you are not yet registered with TFO
Canada, please complete Steps 1 and 2 (Step 3 is optional but
recommended). If you are already registered, please sign in, click on
Exporter Profile, and review the details you have provided. Note that
product information is very important.
As of April 1, 2010, Canadas population was estimated at

34 million, an increase of 0.26% from January 1, 2010. All
four western provinces had growth rates stronger than the
national average. More than two-thirds (71%) of the firstquarter increase was due to net international migration,
while 29% was attributable to natural increase.
The six largest metropolitan areas in Canada are Toronto
(5.5 million inhabitants); Montreal (3.7 million); Vancouver
(2.3 million); Ottawa-Gatineau and Calgary (1.2 million
each); and Edmonton (1.1 million). Canadas two official
languages are English and French.
The market reports are intended to provide the

exporter with background information on the
Canadian market for a product; advice on how to
go about finding a Canadian buyer; and
suggestions on what to do once a buyer is found.
The reports offer exporters enough information to pursue the Canadian market on their own and to seek
further details from suggested sources through websites, electronic mail, fax, mail or telephone. These
reports are intended for the experienced exporter who is serious about trying to enter the Canadian
market. Canada is not the market to test your first export experience; a history of exporting to a market
closer to home is invaluable before attempting this one. Show the potential buyer that you have done your
homework and are serious about a long-term relationship. Research, planning and commitment are
essential in establishing a good reputation in trade with this country.
Scope of the Report

This report covers the following Hand Tools classified under the Harmonized System (HS). Hardware
products are classified under the North American Industry Classification System (NAICS) Code 3325.
HS Code
Product Description
8201
8202
8203
8204
8205
8206
8207
8467
Hand Tools for use in Agriculture, Horticulture or Forestry

Hand Saws and Saw Blades
Files, Rasps, Shears, Pipe Cutters, Snips, Punches and similar hand tools, including parts
Hand Operated Wrenches and Spanners
Drilling, Threading or Tapping Hand Tools
Sets of Hand Tools for Retail Sale
Other Interchangeable Tools
Other Hand Tools
Exporters should note that the Canada Border Services Agency (CBSA) requires individual imports to be
identified by 10 digit HS codes; importers could be fined if these are not provided. Current codes are
available from CBSA or from your buyer.
The Canadian Market
The market for tools and hardware items can be split into two categories: retail and trade sales. The retail
sector is dominated by consumers (the general public) and small-scale trades people. Trade sales relate
to large orders typically placed by the construction sector and professional tradesmen. Canadian
consumers of do-ityourself (DIY) products are generally independent home owners; currently, there are
approximately 12 million households in Canada. These DIY consumers can be found in all adult age
brackets, and all income levels. The majority of the market is male, earning low to mid-levels of income,
who are mostly homeowners seeking to improve their current residences, or to increase their property
values for resale.
Canadian retailers are fueling this current trend in self-help by offering in-store classes and workshops in
various renovation and repair tasks, such as plumbing and painting. They are also stocking more DIY
packages of hardware items to assist those customers in their projects. Brochures and books that provide
step-by-step details on basic projects are widely available in these stores that assist the less than
confident souls who intend to embark on renovation projects by themselves.
It should be noted that in this market, price, design and quality have
a bearing on a companys product share. In the higher price
ranges, quality and design are paramount, while in the lower end of
the market, price is the main issue for a consumer.
Merchandising and marketing techniques

such as in-store demonstrations, value
added packaging, rebates or cash- back
programs are often used in Canada to guide
consumers and stimulate sales.
Hardware: The hardware market in Canada is over $19 billion in

annual sales at the retail level; these sales are prompted less by impulse buying and more by purchases
made on a project basis. Since consumers are more conscious about security and energy conservation,
sales of related devices for the home such as lights, locks, timers, alarms and lighting remain high.
Energy audits, soon to be a requirement for home sales, will boost demand for these products.
Fasteners: These include nuts and bolts, washers, nails and screws. Given the increasingly specialized
needs of building professionals and the large numbers of do-it-yourselfers in the market, the
manufacturers representative must thoroughly brief the retailer so that sales staff can be trained to
answer customers questions with detailed information about these products. Manufacturers should note
that the Canadian market sometimes requires a different product than the U.S. market, e.g., square
recessed Robertson head screws are popular in Canada as opposed to slot or Phillips head screws in
the United States.
Fasteners are constantly being improved in design. For example:
new types of coatings lubricate the shafts of fasteners to make installation easier;
the design of screws are changing to help improve the performance of screw guns;
packaging on hard fasteners is improving, e.g., new boxes use less excess packaging and thinner
plastic and have labels giving type, applications and tools the products work with.
Fasteners are considered a commodity by major buyers and therefore price is a key factor in purchasing.
However, since fasteners are not very price sensitive at the retail level, they lend themselves well to bulk
packaging for the same profit margin as smaller packs.
Locks and Door Hardware: With growing interest in security and renovation, consumers are choosing
locks with a combination of good keying mechanism and style. Locks used in North America are
cylindrical, not mortise. Changing the hardware on an entrance door, bathroom or kitchen is an affordable
cosmetic change. People generally move upscale in this sector since it is a small capital outlay with

potentially big returns in the resale value of a home. Cabinet and door hardware sales average over $100
million at the retail level on an annual basis, three-quarters of which is by the home improvement sector.
Door hardware is fashionably designed, with pewter, chrome and brass being top sellers. To protect the
increasing number of double income families where the home is left unprotected most of the day, the
National Building Code and its provincial counterparts make dead bolts mandatory on all exterior
residential doors. The majority of door-lock grip handles on the market today incorporate a dead bolt.
Electronic door lock technology is used in most cases for garage doors.
Hand Tools: The hand tools market in Canada, currently
The typical tool user in Canada is between 35 to
55 years of age, who replaces old tools with more
estimated at $3 billion, is expected to grow around 3% per
powerful and technologically advanced products.
year for the foreseeable future. There is a strong demand for
Source: U.S. & Foreign Commercial Service
new, ergonomically designed, innovative and easy to use
tools such as cordless and pneumatic power driven tools.
Within recent years, technological advances in design and manufacture have blurred the lines between
tools that are produced for the professional and those for the average do-it-yourself user. This has
allowed marketers of these tools to direct their efforts towards building brand loyalties for their products,
especially in the DIY market (it is estimated that 60% of these tools are bought on a project-driven basis).
The most popular hand tools in Canada are the cordless varietydrills, screwdrivers, saws and routers
which are becoming more powerful and whose batteries now allow them to be run for much longer
periods than thought possible even a few years ago. The designs of the power tools are becoming more
novel each year; for example there is growing interest in simplicity of design such as mounting systems
without tools and in changing drills or saw blades without using a screwdriver. There is also a trend to
monofunctional equipment or machines that perform fewer functions, especially true for drill attachments.
This trend has been extended to basic hand tools; these tools, such as hammers, wrenches and the like
are being made from new materials and are incorporating ergonomic designs to make them better(and
more visually appealing). Increased sensitivity towards environmental issues affects both the design and
packaging of power tools. Some manufacturers are developing quieter, cleaner and more efficient tools,
and retailers are selling power tools with minimal retail packaging. Others repackage their products to
give it a new image without any changes being made to the product itself.
The demand for hardware and tools is related to construction: residential, industrial, commercial and
institutional.
Residential Construction: Except for Prince Edward Island, every area of Canada experienced a
decline in the numbers of new housing from 2008 to 2009. These statistics are clearly linked with the
recent economic crisis; nonetheless, there was an increase in new housing construction of more than
3,700 units between 2009 and 2010. This growth is predicted to continue into the future: between 2010
and 2018 there is to be an estimated increase of 10,000 units of total new housing construction.
Nova Scotia is expected to experience an annual increase of roughly 300 new housing units between
2010 and 2018; Newfoundland and Labrador will witness a decrease of 150 in that same period. Growth
in the rest of the Atlantic Provinces is expected to remain relatively consistent over the next decade.
Housing in Qubec is predicted to see an increase of roughly 500 new housing units between 2010 and
2018, while that in Ontario is expected to almost double with an increase of over 7,000 during the same
period. For central Canada, Manitoba is predicted to experience an increase in new housing construction
of over 400 units between 2010 and 2018, while Saskatchewan is expected to experience more modest
growth during that same period (50 new housing units). Western Canada is likely to experience significant
growth, with the number of new housing constructions in British Columbia doubling between 2010 and
2018, and numbers in Alberta increasing by about 1,000 during the same period.
In terms of renovations, there was actually an increase of expenditure between 2008 and 2009. This can
be explained by many recession-struck Canadians opting to take the more cost efficient path of
renovating their existing domiciles rather than buying new ones. There was a slight decline in renovation
expenditures between 2009 and 2010 as Canadians began buying new housing in greater numbers,
drawn by attractive low interest rates. Nonetheless, expenditures on renovations are expected to rise

from 2010 levels of $3.5 billion to over $4 billion in 2018. A comprehensive list of past and projected
growth in the Canadian residential construction industry from 2006 to 1018 can be found below.
Residential Investment by Region (2006-2018)

Residential Construction: New Housing (actual numbers)
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Canada
Newfoundland &
Labrador
38649
39324
37221
24633
28709
32484
30796
30553
32535
35539
38722
40675
40312
346.01
382.66
459.9
396.29
357.35
218.99
172.57
228.55
286.22
320.65
321.3
281.15
216.03
Nova Scotia
785.14
781.41
732.24
601.57
595.11
475.01
428.92
474.53
569.21
683.82
774.7
819.63
835.36
PEI
113.16
120.77
116.02
116.39
110.92
60.578
71.042
86.767
80.967
101.32
112.34
119.08
117.04
New Brunswick
495.52
532.91
544.75
466.94
451.53
307.99
324.46
427.8
552.39
602.6
584.36
516.33
435.74
Quebec
7301.9
7654.8
7351.7
6676.6
6588.6
5595.7
4835.1
4349.6
4482.6
5217.4
6223
6976.4
7135.4
Ontario
14543
14271
13732
8480.5
9945.7
12381
12308
12604
13430
14597
15969
17119
17632
Central Ontario
3023.2
2839.7
2981.1
1216.4
1803.6
1851.5
2039.1
2258.5
2599.5
3247.7
3927.3
4539
5022.8
East Ontario
Greater Toronto
Area
Northern
Ontario
Southwest
Ontario
1541.7
1685.4
1762.7
1031.4
1320.3
1136.8
1331.5
1443.9
1468.2
1475.2
1512.1
1558.1
1610.2
7957.3
8021.4
7333.1
5379.2
5778.3
8311.3
7629.8
7005.6
6841.5
7000.4
7446.3
7843.8
8183.2
387.26
407.56
442.37
298.83
318.61
277.09
314.67
385.42
487.77
578.14
647.57
650.5
574.1
1633.3
1316.9
1212.2
554.77
724.88
804.72
993.24
1511
2033.1
2295.2
2435.9
2527.3
2242
Manitoba
703.39
791.35
823.7
621.38
732.51
834.37
1036.3
1066.6
1114.7
1158
1190
1194.5
1146.5
Saskatchewan
533.07
759.68
917.4
529.24
733.21
763.96
741.4
739.51
695.97
626.08
594.1
647.59
780.06
Alberta
6525.1
6603.1
5347.2
3176.2
4279.3
5798.5
5217.6
4852.9
5110.8
5734.8
6235.7
5977.2
5078.4
British Columbia
7303.4
7426.3
7196.5
3568
4914.8
6047.1
5659.8
5721.9
6212.1
6497.2
6717.4
7024.1
6935.3
Residential Construction: Renovations (2002 $ millions)

Canada
Newfoundland
and Labrador
32529
34233
34220
37687
36599
35963
35809
36349
36854
37150
38113
39265
40176
525.91
548.76
533.61
599.97
584.58
563.07
552.08
554.29
557.52
556.78
564.79
575.83
580.06
Nova Scotia
Prince Edward
Island
942.16
994.33
993.52
1128.8
1109.1
1063.7
1039.2
1043.8
1051.6
1052.9
1075.9
1107.3
1133
114.67
129.07
127.97
134.78
136.74
133.82
131.92
131.64
131.55
131.4
134.31
138
140.31
New Brunswick
685.46
742.11
756.93
838.79
823.54
804.19
799.02
810.95
828.63
842.39
859.96
877.15
888.15
Quebec
7934.1
8465
8748.4
9582.5
9311.6
9114.9
9054.6
9179.7
9273.2
9348.5
9544.3
9786.5
10016
Ontario
13400
14475
14171
15510
15053
14916
14896
15104
15291
15354
15798
16347
16770
Central Ontario
2785.5
2880.3
3048.2
3289.2
3172.7
3134.9
3128.8
3166.1
3204.6
3221.1
3321.3
3443.2
3538.6
Eastern Ontario
Greater Toronto
Area
Northern
Ontario
Southwest
Ontario
1420.5
1709.5
1802.4
1982.4
1935.6
1910.2
1893.5
1905.7
1917.1
1914.5
1960.1
2018.1
2060.1
7331.9
8136.2
7498.2
8244
8006.8
7967.8
7977.6
8109.2
8224
8265.7
8510.4
8816.4
9065.2
356.82
413.39
452.32
500.26
486.49
469.3
459.2
457.23
455.7
452.35
460.74
470.89
477.42
1504.9
1335.8
1369.6
1494
1451.2
1434
1437.1
1465.4
1490
1500.3
1546
1598
1629.2
Manitoba
995.52
1027.6
1085.1
1214.5
1195.3
1178.6
1183.4
1207.2
1227.1
1240.1
1264.4
1292.2
1313.8
Saskatchewan
892.02
828.55
777.06
907.6
913.42
902.81
904.65
919.37
928.17
930.48
945.74
972.22
1001.9
Alberta
2625.1
2447.7
2612.1
2846.6
2754.6
2703.2
2713.1
2785
2866.6
2931.1
3016
3085.6
3117.2
British Columbia
4414.9 4574.6 4414.2 4923.2 4717.2 4582.4 4534.8 4613.8 4698.5 4762.7
Sources: Sources: Construction Sector Council (2009 - 2018), Statistics Canada, Bank of Canada, CMHC, HRSDC, 2010
http://www.constructionforecasts.ca/oft/table?preset=236&register=1
4909.5
5083.3
5214.6
Institutional Construction: Canadas total institutional investment fell from $32.5 billion in 2008 to $31.9
billion in 2009, a decrease of roughly $500 million, likely due to the recent economic crisis. A rebound of
$2 billion was witnessed between 2009 and 2010, raising total institutional investment in 2010 to $34
billion. By 2018, it is expected that Canadian institutional investment will reach over $43 billion, and that
all Canadian provinces will experience an increase in institutional investment over that same time period.
A comprehensive list of past and projected growth in the Canadian construction industry from 2006 to
1018 can be found below.
Institutional Investment by Region 2006-2018, (2002 $ millions)

Building Construction
Canada
Newfoundland &
Labrador
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
29733
30286
32500
31898
34090
35188
36442
38401
39456
40230
40717
41774
43120
1146
894
856
925
932
1009
1069
1511
1644
1497
1170
1021
1013
Nova Scotia
692
750
727
823
916
931
913
920
930
941
951
974
1007
Prince Edward Island
113
116
126
110
133
139
130
120
125
130
134
138
142
New Brunswick
662
605
620
656
696
733
734
721
724
742
764
775
780
Quebec
5610
6281
6986
7186
7692
7816
8049
8418
8577
8736
8932
9172
9466
Ontario
10980
11049
11829
11567
12757
13128
13807
14506
14803
15116
15574
16186
16820
Central Ontario
2261
2453
2547
2414
2649
2721
2814
2931
3023
3108
3211
3319
3419
Eastern Ontario
1555
1713
1855
1860
2027
2035
2058
2121
2173
2209
2259
2326
2391
Greater Toronto Area
5293
4838
5055
5033
5622
5772
6261
6657
6885
7022
7251
7615
8024
619
690
742
743
820
823
829
854
866
878
887
899
914
Southwest Ontario
1251
1356
1630
1517
1639
1778
1846
1944
1857
1899
1965
2027
2072
Manitoba
1028
988
1132
1139
1299
1328
1374
1407
1453
1489
1508
1531
1556
965
877
1114
1215
1334
1503
1476
1425
1402
1362
1312
1344
1401
4153
4500
4907
4167
4156
4387
4537
4796
5035
5222
5354
5490
5600
British Columbia
4383
4226
4204
4110
4174
4214
4353
4578
4763
Sources: Construction Sector Council (2009 - 2018), Statistics Canada, Bank of Canada, CMHC, HRSDC, 2010
http://www.constructionforecasts.ca/oft/table?preset=237&locale=en
4996
5017
5143
5335
Northern Ontario
Saskatchewan
Alberta
Imports
Canadian imports of hardware dropped from $1.6

billion in 2008 to $1.4 billion in 2009, while imports
of hand tools dropped even more dramatically,
from $2.6 billion to $2 billion over the same period.
However, there are signs that both markets are

improving, with imports of hardware rising by
6.3% and those of hand tools by 2.4% in the first
five months of 2010 compared to the same
period a year ago.
The most popular imports of hand tools in 2009 were

interchangeable tools; hand tools (including
pneumatic types; those with self-contained electric
and non-electric motors; chain saws; and parts); and
drilling, threading or tapping hand tools.
Deapite the fact that sets of hand tools for retail sales
are the least popular imports, this is a sizeable and
growing market at $41 million in 2009. As the
adjacent graph shows, it was the only category that
increased in imports over previous year, up from $36
million in 2008.
Note: All statistics were obtained from Trade Data Online - Trade by Product, Industry Canada, 2010
In 2009, the major suppliers of hardware to Canada were the United States ($700 million, down from $1.1
billion fours years ago); China ($292 million, down from $204 million in 2005); and Mexico ($127 million,
down from $159 in 2005). Major suppliers from TFO Canada client countries were Thailand ($4.5 million,
up from $3.1 million in 2005), India ($3.6 million, up from $2.7 million in 2005), and South Africa, which
showed a dramatic increase from $44,000 in 2005 to $2.1 million in 2009. The Philippines, Vietnam,
Pakistan, Mozambique and Costa Rica also showed significant gains over the four year period.
As the graphs on the following pages indicate, major suppliers of hand tools in 2009 were the United
States ($808 million, down from $1.2 billion in 2005), China ($554 million, down from $471 million in
2005), and Taiwan ($119 million, down from $149 million fours years previously). The top three TFO
Canada client country suppliers to the hand tools market were Malaysia ($11.5 million, nearly a threefold
increase from 2005 levels), India ($10 million, also up significantly from $7.6 million in 2005), and Brazil
($6 million, down from $10.5 million in 2005). South Africa, the Philippines, Dominican Republic, and
Indonesia showed declines in exports to this market between 2005 and 2009, while Thailand, Colombia,
Pakistan, Vietnam, Chile, Peru, Honduras, and Tunisia were successful in increasing sales to Canada
over the same period.
Canadian buyers have stated that

deterrents to importing from
specific countries include
inconsistent product quality, poor
packaging and unacceptable
hidden costs in waybills.
Trends and Opportunities
Demographics: It is important to consider Canadian demographics when

marketing hardware and hand tools in Canada. Canadas population is
ageing rapidly and becoming more urban. Two main reasons for the ageing
of the population are the nations low fertility rate and increasing life expectancy. For the first time, in the
2006 census, the number of seniors aged 65 years and over surpassed the four million mark. The
percentage of seniors as a whole of the Canadian population has consistently risen over the past decade.
This increase is observed at the national level as well as in every province, territory and census
metropolitan area in the country. At the same time, the working-age population (15 to 64 years) is
becoming older and the number of people approaching the age of retirement has hit a record high. The
fastest growing age group is those individuals aged 55 to 64 who are nearing retirement. These citizens
are relatively wealthy, well educated and are often interested in improving their living environment by
either buying new accommodations or improving already owned housing. Both Canadian property
developers and tradesmen whose specialization is necessary for many renovationsrequire hardware
and hand tools to meet Canadian demand for both new and improved properties. Most Canadian buyers
will expect these products to be competitively priced and of good quality. This is particularly important
because of building codes in Canada and the competitive nature of property development.
Exiting high cost countries: Countries with lower production costs are generally gaining more orders
and those with higher costs are losing orders. This is happening globally and within geographic regions.
Importance of trade agreements: Bilateral and regional trade agreements play a significant role: as
tariffs are removed, buyers are motivated to source from those particular countries and regions. Leading
up to and after the end of tariffs, many buyers start to reduce the number of small suppliers with whom
they have direct relationships and instead begin establishing longer-term relationships with a fewer
number of large suppliers. This does not necessarily mean the demise of small business as these large
companies often have their production done in several wholly owned or subcontract facilities in a number
of countries.
Corporate Social Responsibility: Canada is adding parallel Labour and Environment agreements to
most trade agreements signed as recently as 2009; this is expected to continue into the foreseeable
future. As such, an exporters Corporate Social Responsibility strategy becomes important in trade with
this country. Corporate social responsibility (CSR) is not a new concept, but buyers are taking a direct
and deliberate look at the total production process including procurement, manufacturing and waste
disposal. Exporters should try to market themselves by offering buyers their published CSR statements
and try to choose to work with vendors committed to the same level of compliance. While labour rights
issues are not currently viewed by most buyers as being as important as environmental issues, importers
do evaluate these factors as part of the whole picture, particularly when making decisions about whether
to buy from specific countries. As well, major violations of human rights and/or political or social instability
can affect sourcing decisions. Brands clearly want governments in producer countries to improve on
environmental and labour standards regulations and their enforcement. According to companies
interviewed in a recent survey, countries in Central America and the Caribbean could gain some degree
of competitive advantage over Asian countries with relatively lower production costs, if they meet the
challenges described above.
Environmentally-Friendly Practices: Green interests are here to stay they are no longer a fad as
companies have become serious about their responsibility to the environment. This is increasing demand
for resource suppliers who collect, manufacture and move their products in environmentally friendly and
sustainable ways.
10
Trade Practices
Competition
Since Canada ranks among those countries with the highest imports per capita, exporters from all over
the world are present here, competing fiercely and consistently for a part of this lucrative market. To make
inroads here, an exporter must therefore either offer a completely new product or be able to push aside
an existing supplier with a more attractive offer in terms of quality, service, price, packaging or labelling.
Canadian businesses engaged in importation, resale, distribution and retail sales across Canada look for
sales support as well as regulatory compliance, marketing and promotional efforts from their foreign
suppliers in order to market their products and develop new client bases.
The key to successful exploitation of the Canadian market is the development of an organized marketing
strategy. The following require priority attention:
rapid turnaround in sample production;

same-day reply (by e-mail, fax or telephone)
to every communication;
on-time deliveries, with any delays agreed
to in advance with your buyer;
delivery of product which corresponds
precisely with agreed-to specifications or
samples, with any changes agreed to in
advance with your buyer;
continuity of supply;
maintenance of high quality at a competitive price;
appropriate packaging material for overseas
shipments;
adequate handling and storage facilities;
promotion, especially of new products (include
names of current or past clients and/or their
countries);
knowledge of payment terms.
In addition, you should ensure that your representative who is in contact with the buyer speaks and writes
clear and fluent English or French, depending on the buyers preference. Exporters can focus on
strategies including:
adjusting to globalization by becoming niche players, specializing by product or by market;

improving export marketing skills and knowledge of foreign markets;
putting more emphasis on product development and the production of quality-assured and
environmentally friendly products, i.e., adopting the ISO 9000 series or similar quality standards
and ISO 14,000 series or similar environmental management standards.
Trade Shows
Canadian importers and a number of retail buyers usually visit foreign markets and their suppliers once a
year. They normally organize such trips to coincide with the most important foreign trade shows where
they can explore possibilities for imports, as well as assess industry trends.
Perhaps the most important trade show in Canada is Construct Canada; other important Canadian trade
shows include:
IIDEX NeoCon Canada
Buildex Calgary
Contech Montral
11

Construct Calgary
Interdesign
BC Construction Show
Design Northwest
Buildex Vancouver
Atlantic Building Materials Show
The Outdoor Adventure Show -Toronto
Kelowna Home Show
Buildex Edmonton
Log And Cottage Show - Exhibition
It is advisable to check with your agent, buyer or embassys commercial counsellor to fully assess the
documentation requirements, costs and benefits of your participation in trade shows. Please note that
TFO Canada does not provide letters of invitation to assist with obtaining travel or entry visas. These
must come from the buyer directly, or from proof of registration at a trade show.
The Buyer
Finding a Buyer: Entering a new market can be daunting, but with a well-defined marketing plan, the
rewards will be well worth the effort. Exporters have one chance to make a good first impression. Use this
chance to show what you are selling. Initial information about your company should include photographs,
prices, specifications, and quality/safety certifications of your latest products. You can also include photos
of your production facilities. The internet is an essential tool for communication with Canadian buyers, so
develop a website or have an e-mail address that will allow you to readily provide this information so that
they can quickly assess whether they are interested in pursuing an arrangement with you. If you do not
show in such an immediate and concrete fashion what you are capable of, the buyer loses interest.
Finding a buyer requires perseverance and a serious commitment of
time, effort, and cost. The appointment of a good local agent or
representative is crucial in this competitive environment and exporters
should note that different agents may be required to cover separate
regional areas. TFO Canada encourages exporters to use any of the
following tools to help in these efforts:
Consistency in quality and delivery of the

product with ordered specifications are
crucial to maintaining Canadian orders.
Continuity of supply is a key factor in the
importers, wholesalers and retailers
commitment to marketing imported
goods in Canada. Sporadic shipments
will damage the exporters reputation and
chance of success in Canada.
Participate in trade shows in your own country or region, since

buyers frequently attend these. In addition, international shows can
be an invaluable source of market intelligence. If you cannot attend these, contact the organizers to
obtain the catalogue of exhibitors, many of whom will be importers. When attending international
trade shows, be sensitive to exhibitors, who will be busy trying to sell their own product. Introduce
yourself, leave a business card and brochure with product information, and ask if you can call them to
arrange an appointment within the timeframe of your visit to discuss what you can do. Do not try to
sell on the spot at these shows; you will likely not succeed.
Consult with the trade representatives at your Embassy in Canada. They can provide help in
identifying potential Canadian importers, or may be able to direct you to an independent researcher
who could provide you with a detailed listing of interested Canadian buyers. Generally, the more
publicity you generate for your company and product, the more interest you will create in buyers.
Take advantage of a buyers personal visit to your country. The Canadian Embassy in your country or
your national export promotion office may have advance notification of such visits. Let them know that
you would like to meet with any visiting buyers in your product line and if possible, contact the buyer
directly to arrange a meeting.
Obtain a list of Canadian buyers who have traded with your country and contact them to offer your
products. These lists may be available from your local Chamber of Commerce, foreign trade ministry,
and directories that can be purchased, such as the Retail Chains Directory. Some of these directories
are expensive, but may be consulted without charge at Canadian public libraries while you are on a
visit here.
12
Contact any bi-national Chamber of Commerce existing between your country and Canada.
Use trading companies and agents (regional, national or in Canada).
Seek the assistance of your bank or freight forwarding company.
Industry Canada provides links to registered Canadian hardware and hand tool companies. Exporters can
also identify Canadian buyers who are listed on the internet by sector or through guides that might be
compiled by Canadian sector trade associations.
Foreign Affairs and International Trade Canada also provides information to assist non-Canadian
businesses, including information on How to Do Business with Canada; Expand or Invest in Canada; and
Find a Supplier or Partner.
Dealing with a Buyer: Many importers or their agents may visit the production facilities of the supplier to
assess the suppliers capabilities, assure themselves of the quality of production facilities, and to build a
solid trading relationship. Suppliers should maintain good communication with their buyer throughout the
entire sales and after-sales process. In addition to offering value, buyers expect efficient handling of
export procedures by a supplier, as well as reliability, experience, competence, a proven ability to source
and a determined commitment to a long-term business relationship. Canadian importers have reported
that a problem in dealing with new suppliers is that they are often asked to purchase unrealistically large
minimum quantities for a market the size of Canadas. Exporters must bear in mind that the Canadian
market is about 10% the size of the U.S. market and therefore must be prepared to fulfill small orders.
At first contact with an importer in Canada, the exporter will likely be asked for samples. These samples
should be accompanied by a certificate of analysis issued by a recognized authority in the country of
origin. Shipments must be accompanied by an Import Declaration form and any related fees for
verification of these forms. In Canada they will be assessed for compliance with regulations and quality
standards. Both containers and their contents will be examined. Canadian buyers usually perform an inhouse company inspection of the product to determine if it complies with stated specifications, for the
companys own satisfaction.
If the samples are acceptable, the importer may place a trial order with the supplier. If some adjustments
are required, the importer will request new samples based on the instructions for needed changes. A trial
shipment which is consistent with the accepted samples and which is delivered according to an agreed-to
delivery schedule may then be sent to Canada. The importer generally advises the supplier of the sizes
and types of a product that should sell best in Canada and on the condition that the item should arrive in
this country. The importer uses samples to assess the interest of wholesalers and retailers in carrying the
item.
Exporters should bear in mind potential
Items a buyer may cover in negotiating with a supplier include:
competition from suppliers in the United
Product attributes
Ordering services
States and Mexico. Canadian importers
packaging
availability of product
are aware of the advantages of purchasing
logo mould
promptness of initial delivery

from North American suppliers lower
breadth of product line

availability of repeats
transportation costs, shorter delivery and
quality
promptness of repeats
price range
product substitution
lead
times
and
simpler
payment
product exclusivity
complete or split shipments

mechanisms. These exporters are also
country exclusivity
order revision
usually very familiar with the Canadian
special arrangements
reliability of shipping direct to Canada

market and business norms. Exporters
should consider these facts when setting prices and evaluating business practices.
Import terms vary with individual importers. In general, quotations should be made f.o.b. foreign port,
including packaging, but may be requested c.i.f. to a named warehouse. Payment for imports from
traditional suppliers is generally cash against documents. The majority of Canadian importers will not
work with Letters of Credit but may select other credit formats and terms that would suit both parties.
Contracts often include a clause stating that the goods must be inspected and signed off in-country by the
buyer or agent prior to shipping. The importer usually requests a guarantee to be included in the contract
against hidden quality defects.
13
Once an imported product has established a reputation for high quality, a brand name and trademark
should be adopted. Such identification is important so that customers can easily recognize the product
and know that it represents good value.
Quality and Inspection

Canada has one of the most developed markets in the world, resulting in high standards demanded by
government and expected by consumers. Hardware items and hand tools must be quality merchandise
and durable in order to arrive to market in good condition. Exporters should pay particular attention to
requirements for packaging, labelling and quality. Canadian standards are generally very high and must
be adhered to without overpricing the product if market penetration is desired.
Quality and safety standards for hardware and hand tools are developed by organizations accredited by
the Standards Council of Canada (SCC). The most significant are the Canadian General Standards
Board (CGSB), CSA International (CSA) and the Underwriters Laboratories of Canada (ULC). Electrical,
plumbing and heating supplies, and equipment or appliances affecting fire safety, must be certified by an
SCC accredited organization before export to Canada. The characteristics they examine may include
workmanship, finish, weight, markings, strength and toughness. Links to these organizations are provided
in the Regulations section of this report.
Operating manuals must be published in English and French and supplied with every machine; a
complete set must be provided to the importer for reference and to avoid misrepresentation. In addition,
service and parts manuals must be supplied with every machine for use by maintenance personnel and
for ordering spare parts. To establish and maintain your reputation for reliability and efficiency, these
spare parts must be in stock in Canada or be rapidly available for quick replacements. Once again, a
complete set must be in the importers possession.
Since service must be provided by the importers local service personnel, training is important. Remember
that your sales depend not only on the importer, but also on recommendations of the importers sales and
service personnel to customers who want reliable products. Any contribution you can make to personnel
training should be emphasized to your buyer.
Quality and supply must be consistent and reliable, and the product must offer real commercial viability to
the Canadian buyer. Close communication is critical, since the buyer needs constant feedback from the
supplier. Make yourself consistently available to answer questions and provide information, and ensure
that someone in your group can speak English or French. Send photographs and where possible,
samples of your items, since this is a very visually oriented sector. Larger retailers insist that suppliers
have internet access capabilities for quick communication. These factors are all crucial in affecting the
decision of the buyer, who can source items from many other competitive sources.
Hazard Analysis Critical Control Points (HACCP): This practical system helps producers to review all
potential health and safety hazards in their plant operation and focus on controlling the points that are
critical to the safety of the finished product. The benefits of using the HACCP system include:
international acceptance of your products as the system is adopted worldwide;

national acceptance, allowing you to become a leader in national industry;
defining responsibilities between government and industry;
improved marketability, using internationally recognizable logos and symbols;
reduced recalls and product destruction, vital to an exporters reputation for quality.
Based on the HACCP, the following may be used as a guide by exporters:
Review your business and company procedures, physical facility, processes, shipping, and
distribution systems. Identify areas where you might be vulnerable to potential sabotage or
terrorist attacks and outline control measures for each of these areas.
14
Ensure that there are adequate security measures for your facility and employees.
Have procedures in place to ensure the composition and integrity of all raw materials and
packaging materials in each facility.
Develop procedures to ensure the integrity and security of your manufacturing equipment and
water supply used in manufacturing.
Develop procedures and anti-tampering measures to ensure the security of your products
once they are produced and shipped to retail.
Develop an action plan to respond to an emergency, including cordoning off areas, moving
employees and contacting identified authorities.
Ensure all hazardous chemicals are securely stored away from production and handling and
are listed on safety sheets on site.
Price
Traditionally, wholesalers margins are about 30% of the wholesale price, while retailers usually operate
on a 30-40% margin. Importers margins are generally 10%. In the case of problem loads, a commission
previously negotiated between the supplier and importer may be charged and can range anywhere
between 12.5% and 18.5% of the selling price. The exporter may also be requested to provide rebates as
a result of poor product quality, damage before or during shipping or late delivery. For large volumes,
exporters may initiate special terms which allow them to shift warehousing or inventory costs over to the
retailers. Since the retail price could be three to four times the price paid to the supplier, medium to low
pricing on products is most attractive to the buyer.
Packaging and Transportation

Besides trucking, imports enter Canada mainly by sea, generally in 20-40 containerized units. Small
shipments are usually given to consolidators who build container loads (LCL). Requirements for customs
documentation (invoice, certificate of origin, import declaration form, etc.) are detailed by the Canada
Border Services Agency. Since the rate of duty depends on the origin of the product, the certificate of
origin is crucial for both exporter and importer.
Outer Packaging: There should be consistency of packaging and package sizes, an orderly loading of
containers, shipping marks on the master pack and article numbers on the inner packs. Shipping
containers must be clearly stamped or stencilled on a minimum of two sides with all code markings, and
in waterproof ink. Since buyers generally use the same packaging to ship products out of their
warehouse, the packages should be sturdy enough for multiple handlings. Reusable rather than
disposable packaging addresses environmental concerns. Proper packaging is important since substandard packaging may damage the product and create problems for the importer in clearing and
marketing the goods. The importer will then refuse to do further business with that supplier.
All imports must be packaged in a container
in such a manner as to prevent the product
from becoming infested or from spreading a
pest. While awaiting shipment, dunnage,
pallets, crating, or other packaging
materials must be stored in a fashion that
will prevent such infestation.
Wooden Crates: To prevent the spread of harmful exotic insects and

pathogens such as the Asian gypsy moth, Asian long-horned beetle,
pine shoot beetle, European spruce bark beetle, brown spruce
longhorn beetle, the emerald ash borer, and the sudden oak death
pathogen, all species of non-manufactured wood used as dunnage,
pallets, crating or other packaging material must be treated by heat,
fumigation or chemical preservatives. This applies particularly to
imports from China and Hong Kong. Packaging material must be completely free of bark and visible
pests. Manufactured wood and wood particles such as sawdust and wood shavings used as packaging
are exempt. Similar restrictions apply to packaging material consisting of straw and hay to prevent the
introduction and spread of cereal leaf beetle in this country. All shipments containing solid wood crating
must be accompanied by an official phytosanitary or treatment certificate from the official plant protection
authorities in the exporting country, confirming that it has been treated. Shipments not containing solid
wood crating must carry a statement to that effect on accompanying documents. Shipments not meeting
15

these requirements may be seized or denied entry into Canada, with incurred costs being the importers
responsibility.
Retail Packaging: Attractive, appropriate and appealing
retail packaging is important and suppliers should consult the
Canadian buyer on this subject. Creative packaging may
make the product more attractive for consumers. Space for
labelling as required by Canadian regulations should also be
made available on the package and product identification
codes included on all retail packages. To this end, exporters should note that Canada is gradually shifting
from the UPC (Universal Product Code) to the GTIN (Global Trade Item Number) coding system that will
eventually be used worldwide to facilitate global trading. Experts in Canada can provide designs, artwork,
translations and send over final film for printing in your country, which is often more economical than
printing in Canada. Your buyer may be able assist you with these details.
Effective product packaging is an important factor
that allows exporters of hardware and hand tools to
be more competitive in the Canadian market.
Packaging should clearly illustrate and concisely
explain the products applications.
The province of Qubec has additional

requirements concerning the use of the
French language on all products
marketed within its jurisdiction. Details
on labelling instructions can be
obtained through your buyer.
Labelling
Labels on imports must conform to Canadian standards. Exporters should consult with
and have the buyer approve drafts prior to printing. If any requirement of the Canadian
labelling regulations is missing, the goods cannot be sold. Exchanging or attaching
additional labels is time consuming and expensive. Imports bearing a description in a foreign language must have a separate
label in English and French which complies with labelling regulations. The importer in this case is responsible for the labelling.
Pictures and illustrations on the label must correspond to the contents of the package.
Private Labelling: Private labelling is common, and done largely to achieve higher margins while offering
consumers products that are tailored to their needs. In the case of large retailers and chains, private
labels may account for between 10% and 50% of stock. Private label or store-brand merchandise is
heavily sourced from imports. In this case, the supplier must be prepared to fulfill stringent requirements
in terms of specifications, size, quality, labelling, and pricing. A buyer cannot import incomplete or
improperly labelled articles except in cases where the labelling will be completed in Canada. In this case,
an Industry Canada inspector must be notified at the time, or in advance of importation, of all details
respecting the nature and quantity of the importation, the date and port of entry and the address of the
premises where the re-labelling of the articles will be completed. The dealer must notify the inspector on
completion of the re-labelling and prior to resale, to allow inspection of the labelled goods.
Imported Items: Labels are generally supplied by the Canadian buyer for the supplier to attach to the
product. A dealer cannot import incomplete or improperly labelled consumer products into Canada,
except in cases where labelling of the articles will be completed in Canada. In this case, an Industry
Canada inspector must be notified at the time, or in advance of importation, of all details respecting the
nature and quantity of the importation, the date and port of entry and the address of the premises where
the re-labelling of the articles will be completed. The dealer must notify the inspector on completion of the
re-labelling and prior to resale, to allow the inspection of the labelled goods. Imports bearing a description
in a foreign language have to be provided with an additional label in English and French which complies
with the labelling regulations. The importer in this case is responsible for the labelling.
Outer shipping packages should be labelled with the following information:
brand name;
product number;
net amount in the immediate container in
terms of weight, measure or number;
expiry date;
name and address of the importer;

UPC/PLU or other bar code, identical to the
one on the individual products;
lot number (to identify individual shipments).
For retail packages, information regarding the nature of the product, contents, and manufacturer must be
provided. The label must be conspicuous and the lettering designed according to prescribed minimum
size letters and numerals. The following should be shown in English and French:
16
Name and head office address of the

manufacturer or person who markets the goods
in Canada in their own name;
Name or description of the contents, including
the products composition;
Product of . . . (country name);
17
Quantity of the contents in Canadian weights

and measures (metric net quantity) if
appropriate;
UPC or other bar code as required;
Warning labels must be clear and include
what the actual risks are (e.g., electrical
shock).
Distribution
The primary market areas in Canada are Toronto, Montreal and Vancouver. Consolidation of shipments
to these cities is a common feature of distribution, which is essentially based on delivery from
producer/exporter to broker, to importer, wholesaler and finally to retailers.
General Consumer Distribution Channels: Sales to Canadian
companies are handled through relatively short marketing channels,
and in many cases products move directly from manufacturer to enduser. Often, complete coverage of the consumer market requires
representation in the various regions of Canada. Toronto, the largest
metropolitan area and commercial center of the country, is usually the
most logical location for establishing sole representation. From a
regional perspective, the country may be divided geographically into
territories. These are:
Retailers source their products through

a combination of:
Trade shows (91%)
Sales representatives (60%)
Trade magazines (35%)
Other retailers (32%)
Web sites (28%)
five distinct markets, plus the
The Atlantic Provinces: New Brunswick, Nova Scotia, Prince Edward Island, and Newfoundland and
Labrador (2.3 million persons);
The Province of Qubec (7.6 million persons);
The Province of Ontario (12.5 million persons);
The Prairie Provinces: Manitoba and Saskatchewan (2.2 million persons);
The Western Provinces: Alberta and British Columbia (7.5 million persons); and
The Territories: Yukon, the Northwest Territories, and Nunavut (0.1 million persons).
Establishing representation in each of these markets provides optimal coverage and the ability to target
promotional programs to suit specialized market needs.
Product pricing is vital to remaining competitive. In the retail sector, for example, Canadian businesses
have followed the successful United States trend toward larger stores with highly competitive prices. To
this end, many retailers have invested in large discount-style operations to expand sales in an
increasingly competitive market. The emergence of high-volume warehouse merchandising in this market
is the direct result of consumer demand for competitively priced quality goods. Value for dollar is the
predominant purchasing determinant in both the consumer and industrial markets.
Producer/Exporter: A co-operative organization (formed
either by producers within a single country or by exporting
countries in a geographical region) would be a good vehicle for
developing an export trade relationship with Canada. Such an
organization would allow producers to work together to
improve handling and distribution; set up adequate
manufacturing, packing and storage facilities; develop a
standards system; gain access to suitable transport (through
increased volume); and establish a brand name or trademark.
DISPUTE SETTLEMENT
Both exporters and importers should ensure that
each transaction or contract is specific about
questions relating to non-performance of either party,
as well as the acceptability or not of products as
delivered, e.g., by stating product specifications
and/or payment terms. Any potential for
disagreement should be covered by specifying an
arbitration board, e.g., the Canadian International
Trade Tribunal and its relevant rules of arbitration.
Both parties should agree beforehand to be mutually
bound by the contract.
Specialized personnel could also be hired to give advice on

production methods and to conduct marketing activities. Initially, member producers should concentrate
on exporting those items with the best market potential and/or those in which they have a strong
comparative advantage. Then, as the organization gains experience and proficiency and market
18

conditions warrant it, the range of products could be expanded. By coordinating activities in this way, a
strong position could be established on the Canadian market. However, it should be noted that poorly
managed co-operatives can have a negative effect, especially when many small manufacturers are
involved. Canadian importers are, in fact, wary of such co-operatives since many have had the
experience of receiving shipments of inconsistent quality. In such circumstances, trade will be suspended.
Importers and Agents: Once you have shown a potential buyer what you are capable of producing and
they express an interest in taking the relationship further, it is considered normal and prudent to request
references from the buyer or agent. Take the time to follow up on these to avoid potential problems in any
future dealings with the importer. Importers and agents have an extensive knowledge of the trade network
and account for a large portion of imports from TFO Canada client countries. They are generally more
willing to take the risks involved in dealing with new suppliers. They are, however, likely to subject
suppliers to careful study before doing business. They expect references and will want to know about the
suppliers export experience, financial standing, and other such details. Exporters who do not supply
references will likely not be well-received. Importers/agents are also more aware of potential problems
that may arise in meeting Canadian requirements for quality, etc., and might be willing to assist suppliers
with hints on adapting the product, providing labels to assist in penetrating the Canadian market, and
providing production order guarantees to allow the factory to plan labour and materials.
Wholesalers: Apart from registering with TFO Canadas database for marketing purposes, exporters
should find that the Canadian Importers Database might be useful for identifying Canadian marketers of
hardware and hand tools; many of these companies import for resale.
Retailers: Retail building supply stores include Canadian stores such as Rona and American branches
such as Home Depot and Lowes. In most cases, consumers can shop through their telephones or the
website of the companies, ordering specific items from a catalogue. In this case, established brand
names that are synonymous with quality are very important. Many of these retailers have buying offices in
or near supplier countries.
19
Import Regulations
Tariffs
Tariffs on imports depend on the product and on the supplying country and its applicable tariff treatment.
Under the Market Access Initiative, Canada has eliminated all duties and quotas on most imports from 48
Least Developed Countries. Accurate identification of the origin of the product is vital to ensuring that the
most favourable tariff rate is applied to your product; as such, each shipment must be accounted for with
the correct import documentation.
Taxes
The federal government imposes a 5% percent Goods and Services Tax (GST) on almost all goods and
services sold here. Only food sold in grocery stores, medical and dental services and a few others are
exempt. All imports are subject to the GST, which is paid by the importer when the product enters
Canada. In addition to the GST, federal excise taxes are imposed on certain goods sold in Canada.
Imports of these are subject to a duty equivalent to the regular customs duty plus the excise duty imposed
on similar Canadian manufactured products. A provincial retail sales tax is also collected by retailers in
most areas upon the final sale of goods and some services to the customer. While they affect the retail
price, these sales taxes are never levied directly on imports.
Important Note: On July 1, 2010, the provinces of Ontario and British Columbia implemented a
harmonized sales tax (HST) to replace provincial sales taxes and the federal GST. The HST in Ontario is
applied on most goods and services sold in the province at a rate of 13%, consisting of the 5% federal
portion and an 8% provincial portion. An HST is already in place for the Atlantic provinces.
Imports are subject to GST or the federal part of HST with some exceptions. For example, goods
imported by manufacturing service companies to be processed for non-residents and later exported
without being used in Canada are considered a non-taxable import. An input tax credit can also be
claimed in some circumstances. GST/HST is calculated on the Canadian dollar value of the goods,
including duty and excise tax, and is collected at the border at the same time as these duties. The owner
or importer of record is responsible for paying the tax on imported goods. Details are available through
the Canada Revenue Agency.
Importing
CBSA provides information on importing goods into Canada. While the information on this site is aimed at
Canadian importers, suppliers should review it to get a feel for information a buyer might request from the
exporter. This information includes:
Accounting for your shipment: Invoices, import permits, Certificate of Origin, Duty Deferral Program,
international trade agreements;
Examining your shipment: Why goods are examined;
Registering your business: Business number, import/export account;
Release of your shipment: Release programs, posting security, transaction number;
Reporting your shipment: Required documents;
Dispute Resolution: Appeal rights, self-adjustment;
20
Electronic Commerce: Electronically sending commercial data to the CBSA;

Importer programs: Customs Self Assessment Program;
Other government departments requirements: Other requirements that may apply;
Licensed customs brokers: Information on hiring an agent and the licensing process.
According to International Trade Canada, only those products that are eligible for a tariff benefit
established under free trade agreements such as with Mexico, Chile, and Cost Rica will be subject to
import permit requirements.
Inspection
If an importer in Canada has received a shipment in a deteriorated condition or has agreed to handle
product in a deteriorated condition, that importer can request an inspection from the Canadian
Government within 24 hours of reception. This is to help determine the responsibility for the condition of
the load so that a fair settlement may be made between the shipper and receiver.
Antidumping
Through CBSA exporters could access information relating to:
Anti-Dumping and Countervailing;

International events in Canada;
Postal and courier programs;
Useful tools and a simplified step-by-step approach to importing;
Customs Interest Calculation Program;
Forms and publications for importers.
Regulations
Every electrical or gas powered item must bear the certification mark of an SCC accredited organization,
or a special test certificate based on Canadian or acceptable internationally known test procedures must
be supplied. This certification is important for warranty service and to clarify disputes over the correct
operation of the machine or malfunctioning of its parts. Warranties covering parts and labour must be
provided and usually last 12 months from the date of the invoice. Under warranty, parts must be supplied
free of charge, while labour is paid either on a case by case basis or through a discount on the price of
the item.
Key regulations, codes and technical requirements affecting the products covered in this report include
those provided by: Federal and Provincial Building, Plumbing, Heating and Electrical Codes; Standards
issued by CSA International, the Canadian General Standards Board and Underwriters Laboratories of
Canada; Consumer Packaging and Labelling Act and Regulations; Customs Tariffs Act; Hazardous
Products Act; Marking of Imported Goods Order; and any applicable bilateral trade agreements.
Provincial building, plumbing and electrical codes are based on model codes, i.e., the National Building
Code of Canada, the Canadian Plumbing Code and the Canadian Electrical Code. These in turn require
conformance to hundreds of national product, material or installation standards published by CSA, CGSB
or ULC. On request, the Standards Council of Canada will advise what standard applies to a given
product and by which organization it is published. For safety-related products, the manufacturer or
importer must demonstrate conformance to standards. This may be done through certification by a
certification organization accredited by the Standards Council of Canada; the Council also provides a list
of these organizations.
The larger certification organizations maintain foreign offices and/or laboratories for the convenience of
their clients. For certain products, conformance may be demonstrated by an evaluation report from the
21

Canadian Construction Materials Centre; a test report from an accredited laboratory may suffice in some
cases. Manufacturers or importers are responsible for determining what standards apply. Materials that
are used in the construction of special industries, such as the food industry, should also be approved by
the Canadian Food Inspection Agency.
Further information is available through the following websites:
Building Products Standards and Regulations Canada

Canadian General Standards Board
Canadian Standards Association
Ontario Technical Standards and Safety Act
Standards Council of Canada
Building Products Environmental Topics
Canadian Environmental Solutions
Environment Canada Climate Change
Air Quality
ecoAction
22
Tips for Exporters
The Canadian market is extremely competitive. Exporters should note that any failure on their part to give
buyers excellent service will result in the buyer quickly turning to other suppliers. The following are
important factors in establishing your reputation for reliability:
Establish an attractive, easy to navigate and informative website with contact links to your e-mail and
ensure that you respond the same day with any information requested. This immediately shows the
potential buyer, who gets many of these offers each week, what you are capable of. Always include
links to your website in any communication with the buyer.
Always keep your fax machine switched on. Since Canada is divided into different time zones, e.g.,
Vancouver is three hours behind Toronto; communication with a buyer might be at unusual hours.
Buyers who cannot readily contact an exporter will quickly turn to other sources of supply. Send an
interim note if information is not immediately available. Give a reasonable date for when all the
information would be ready and honour that date.
The buyer looks at your sample and how you handle the request to provide one as concrete proof of
your capability and an example of how you would handle a potential business relationship. Ensure
that you provide the sample well within the requested timeframe and that the sample is of impressive
quality and value. This will assure the buyer that you are a viable alternative source of supply. Followup orders must match the quality of this sample.
No surprises. Canadians expect delivery of the product they purchase. Unavoidable delays should be
immediately reported and justified to the buyer; ask the buyer to accept the delay.
Provide accurate information and follow up key sales calls in person as soon as possible.
Enclose a standards certificate of the product and photographs of the manufacturing facilities with the
letter of introduction to the importer. This certificate may be needed to show conformity with Canadian
standards and should be obtained from the appropriate authorities in your country.
Get to know the Canadian market and your importer. Read trade publications and visit trade shows
and retail stores in Canada to get a feel for the market.
Establish contact with trading companies or import agents since they may be the most promising
channel for new entries. Hire an agent/importer to represent you in Canada.
If you are asked for exclusive rights to your product, you should include a clause in the contract for a
minimum level of annual purchases. Be flexible and solicit feedback from your buyer on your product
and trade relations. Put all verbal agreements in writing.
Use English (or French in Qubec) in all correspondence and provide information on the product
range, capacities and price list, quoting prices in Canadian or U.S. dollars.
Finally, if you have at least one year of export experience, be sure that you are taking full advantage of
TFO Canadas free promotional services. This includes direct promotion of your company and products to
Canadian importers via our monthly Import Info E-Newsletter and inclusion in our online searchable
database of exporters. Please check your current profile with us by signing in to our website and going to
your Exporter Profile. Ensure that all your information is correct and that you have accurately completed
Step 2 of the registration process including entering one or more of your exported products. Note that
while Step 3uploading additional information such as photos, price lists etc.is optional, we
recommend that you take the time to complete it as well. In the event that you are not registered with TFO
Canada, please register with us by accurately completing Steps 1 and 2, and as explained above, the
optional Step 3.
23
Annex
Sources of Information
TFO Canada
56 Sparks Street, Suite 300
Ottawa, Ontario, Canada K1P 5A9
Tel.: (613) 233-3925 In Canada: 1-800-267-9674
Fax: (613) 233-7860
E-mail: tfocanada@tfocanada.ca
CANADA BORDER SERVICES AGENCY
A directory of CBSA offices across Canada is available
through the Internet site.
I.E. Canada (CANADIAN ASSOCIATION OF IMPORTERS
AND EXPORTERS)
160 Eglinton Avenue East, Suite 300
Toronto, Ontario, Canada M4P 3B5
Tel.: (416) 595-5333 Fax: (416) 595-8226
INDUSTRY CANADA
Building Products
Second Floor, West Tower
235 Queen Street, Ottawa, Ontario, Canada K1A 0H5
Tel.: (613) 947-7466 Fax: (613) 954-6436
INTERNATIONAL TRADE CANADA

Export and Import Controls Bureau
125 Sussex Drive, Ottawa, Ontario, Canada K1A 0G2
Tel.: (613) 996-3711
Fax: (613) 995-5137
LUMBER & BUILDING MATERIALS ASSOCIATION OF
ONTARIO
5155 Spectrum Way, Unit 27
Mississauga, Ontario, Canada L4W 5A1
Tel.: (905) 625-1084
Fax: (905) 625-3006
NORTH AMERICAN RETAIL HARDWARE ASSOCIATION
CANADA
360 DuPont St.
Toronto, Ontario, Canada M5R 1V9
Tel.: (416) 489-3396
Other Useful Internet Sites
Import Source (provides information and guidance on importing to Canada.)

Maquila Solidarity Network
Packaging Association of Canada
Retail Council of Canada
24
Trade Shows
A current list of trade shows of interest to Canadian buyers and suppliers is available through TFO Canada.
ATLANTIC BUILDING MATERIALS SHOW
Atlantic Building Supply Dealers Association
70 Englehart Street
Dieppe, New Brunswick E1A 8H3
Tel.: (506) 858-0700 Fax: (506) 859-0064
BUILDEX
Buildex Vancouver
Suite 510 1185 West Georgia St.
Vancouver, British Columbia V6E 4E6
Tel.: (604) 739-2112
BC CONSTRUCTION SHOW
602-1788 West Broadway
Vancouver, BC V6J 1Y1
Tel./Fax: (604)-739-2112
CONTECH MONTRAL
223, rue Saint-Jean
Longueuil, Quebec, Canada J4H 2X4
Tel.: ( 450) 646-1833 Fax: (450) 646-3918
INTERDESIGN
10 Alcorn Avenue, Suite 100
Toronto, Ontario, Canada M4V 3A9
Tel.: (416) 599-3222 Fax: (416) 599-3224
INTERNATIONAL DU DESIGN DINTERIEUR DE
MONTREAL (SIDIM)
4398, Boul. Saint-Laurent, bureau 103
Montral, Qubec, Canada H2W 1Z5
Tel: (514) 284-3636 Fax: (514) 284-3649
INTERNATIONAL INTERIOR DESIGN EXPOSITION (IIDEX)
10 Alcorn Ave., Suite 100
Tel: (416) 944-3350 Fax:(416) 921-2
NATIONAL HOME SHOW CANADA
895 Don Mills Road, Suite 801, Building 2
Toronto, Ontario, Canada M3C 1W3
Tel: (416) 644-5400 Fax: (416) 644-5401
CONSTRUCT CANADA
10 Alcorn Avenue, Suite 100
Tel.: (416) 512-0203
Publications
Hardware Retailing
North American Retail Hardware Association Canada
360 DuPont St.
Toronto, Ontario, Canada M5R 1V9
Tel.: (416) 489-3396
Woodworking Magazine
240 Edward Street
Aurora, Ontario, Canada L4G 3S9
Tel.: (905) 727-0077
25

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