Académique Documents
Professionnel Documents
Culture Documents
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
HS Code
Product Description
8201
8202
8203
8204
8205
8206
8207
8467
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 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.
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
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
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®ister=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.
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
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
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
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.
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:
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:
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
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:
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
quality
promptness of repeats
price range
product substitution
lead
times
and
simpler
payment
product exclusivity
country exclusivity
order revision
usually very familiar with the Canadian
special arrangements
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.
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.
15
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;
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
17
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:
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.
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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;
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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:
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
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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.
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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
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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
Toronto, Ontario, Canada M4V 3A9
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
Toronto, Ontario, Canada M4V 3A9
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
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