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Q: How a product qualifies as "made in Canada".Is that duty free exporting to USA? ( No Answer,   0 Comments )
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Subject: How a product qualifies as "made in Canada".Is that duty free exporting to USA?
Category: Business and Money > Small Businesses
Asked by: rosered555-ga
List Price: $15.00
Posted: 04 Dec 2005 09:37 PST
Expires: 03 Jan 2006 09:37 PST
Question ID: 601268
We are developing some new products here is Canada. Parts and material
will be acquired from around the world, including Canada, USA and
China.

How a product qualifies as "made in Canada". If it is made in Canada,
does that qualify duty free under the North American Free Trade
Agreement. How does a product qualify under NAFTA?

Request for Question Clarification by thx1138-ga on 04 Dec 2005 10:49 PST
Hello rosered555 and thank you for your question.

The answer is: it will depend.  Have a look at the information below
and let me know if it is of help to you.

"Guide to "Made in Canada" Claims"

"General requirements
The general requirements and definitions are intended to be guidelines
and each scenario will be assessed by the Competition Bureau on a
case-by-case basis, balancing all factors and taking into account the
nature of the product and consumers' expectations in determining
whether enforcement action is warranted.

Goods that are wholly obtained or produced in Canada (for example:
mineral goods extracted in Canada, goods harvested in Canada), will be
considered as Canadian.

In its analysis of a declaration claiming Canada to be the country of
origin of goods incorporating foreign raw materials or components, the
Bureau applies the following rules:

(1) the last substantial transformation of the goods must have
occurred in Canada, and

(2) at least 51% of the total direct costs of producing or
manufacturing the goods is Canadian.

Substantial transformation
The Bureau's view is that goods are substantially transformed where
they undergo a fundamental change in form, appearance or nature such
that the goods existing after the change are new and different goods
from those existing before the change."

"Telephone
Toll free: 1-800-348-5358
National Capital Region: (819) 997-4282
TDD (for hearing impaired): 1-800-642-3844
Facsimile: (819) 997-0324 

Address
Information Centre
Competition Bureau
50 Victoria Street
Gatineau, Quebec K1A 0C9 

Web site
www.cb-bc.gc.ca 

E-mail
compbureau@cb-bc.gc.ca"
http://www.competitionbureau.gc.ca/internet/index.cfm?itemID=1231&lg=e

==========================================================================

"Thus, not all goods made in Canada, Mexico and the United States
qualify for NAFTA benefits. Traders must carefully research the terms
of the Agreement to determine whether their goods are entitled to
NAFTA benefits--they should not assume that they are entitled to NAFTA
benefits merely because they were made in a NAFTA country. It is
possible, for instance, for goods not to originate in Canada, Mexico
or the United States as that term is defined in the NAFTA, but still
be an article of Canada, Mexico or the United States for country of
origin marking, statistical or other purposes."
http://www.cbp.gov/nafta/docs/us/guidproc.html


"Canada and the North American Free Trade Agreement"
http://www.dfait-maeci.gc.ca/nafta-alena/menu-en.asp


Best regards

THX1138
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