Business opportunities
Austrade's business development specialists have prepared a select range of market profiles with potential business opportunities and to assist in your exporting investigations. Please see the list of industries at the end of this profile that you may be interested in.
In conjunction with the market profiles, the Opportunities Online website may be a useful addition to your information sources. The database established by Austrade aims to deliver international sales leads ('export opportunities'), including tenders, generated by our overseas network to Australian businesses.
Registering is simple and once this is done you will have the option of accessing a weekly newsletter featuring the most recent opportunities uploaded onto the system in industry sectors of interest to you. Another feature is the ability to view, and also print, the complete page of opportunity details.
For general inquiries concerning Austrade’s services, please contact Austrade Direct on 13 28 78.
Business etiquette
Please note: Bribery of foreign public officials is a crime. Australian individuals and companies can be prosecuted in Australia for bribing foreign officials when overseas. For more information, go to the Attorney General's Department on foreign bribery.
Tariffs and regulations
Import restrictions
Just about any goods may be imported into Canada by anyone, subject to compliance with certain conditions imposed by the federal and, sometimes, provincial government(s). The conditions referred to are:
- Is entry of the article prohibited into Canada? Examples are hate literature, pornography and other goods that the Canadian Department of Foreign Affairs and International Trade keep out pursuant to international sanctions.
- Is the article allowed in only under the authority of an import permit? Canada controls imports of textiles and clothing, steel, wheat, barley and their products, supply-managed farm products (dairy, chicken, eggs, turkey), firearms and similar items, and some miscellaneous items. Details of these items can be found on the Import Control List.
- Is the article subject to some privately certified standard? Examples are all electrical appliances and equipment, which must be certified by the Canadian Standards Association before they can be sold in Canada.
- Is there a provincial rule to comply with? Examples are imports of liquor, wine and beer, which require prior authorisation from the appropriate liquor commission before Customs Canada will clear them.
Importing goods, which are on the Import Control List to Canada for commercial or personal purposes, is controlled by a series of quotas and import licences.
Prohibited imports include:
- Meat for human consumption not subjected to ante-mortem inspection
- Second-hand automobiles manufactured prior to the year in which importation is sought
- Specified classes of second-hand aircraft
- Certain types of weapons
The Canadian market for imported wine and spirits operates in a highly regulated environment and is characterised by government monopolies. Provincial liquor boards have sole authority to import wine into Canada. The exception is the Alberta Liquor Control Board, which has privatised its entire retail network. The other provincial liquor boards import, warehouse and distribute imported wines to their various retail outlets. However, private individuals and restaurateurs, hoteliers et cetera may obtain approval to import unlisted products through the Liquor Control Boards.
Electrical equipment for connection to mains power must receive the prior approval of either the Canadian Standards Association (CSA) or the relevant provincial electricity authority:
Canadian Standards Association
Head Office
178 Rexdale Blvd
Etobicoke, Ontario M9W 1R3
Tel: +416 747 4000
Fax: +416 747 4149
Information concerning specifications and procedures for applying for approval may be obtained by contacting the Standards Association of Australia.
Duty is applicable on imported merchandise and levied based on the country of origin and product content. Canada Border Services is the governmental agency that determines the relevant duty on products. In addition to the duty, most imported goods are subject the Goods and Services Tax. Both of these are collected by customs at the time of importation, and levied on the landed value of the goods.
There are basically six categories of goods that require import permits:
- Animal and animal products - turkeys, eggs, chicks, and chickens.
- Dairy products - animal feeds, butter, butterfat, cheese, dry casein and caseinates, dry whey and all milk and milk products such as buttermilk, skimmed milk, dry whole milk, evaporated milk and condensed milk, blends, ice cream and ice milk/products/mixes, and yoghurt.
- Other agricultural items - beef and veal, wheat, barley.
- Textile and textile products - fabric or yarn, cotton terry towels and washcloths, sheets and pillowcases of cotton or manmade fibres, cotton broad woven fabrics, and cellulose acetate woven fabric.
- Clothing and accessories - work gloves, outerwear garments, hosiery, pants, blouses and ladies shirts, sleepwear, bathrobes, rainwear, sportswear, foundation garments, swimwear, underwear, jackets, top coats, overcoats, men and boys suits, sports coat, blazers, men and boys shirts, sweaters, pullovers, cardigans, handbags or fabric, apparel goods.
- Miscellaneous - endangered species, racoon dogs, arms of war, carbon steel, speciality steel products, prohibited weapons, softwood lumber.
The Export and Import Controls Bureau (EPD) of the Department of Foreign Affairs and International Trade is responsible for helping importers to determine if import permits are required.
Invoices
Exporters should ensure that all details required by the invoice are included and that the original is signed in ink. Three invoicing options can be used:
- The Canada Customs Invoice (CCI) - should be used for shipments of an FOB value of Can$1600 and over.
- A commercial invoice containing the same information as the CCI except that this is used for shipments valued at less than Can$1200. This may be accompanied by the shipper’s normal commercial invoice provided that it contains all information as provided for in the above prescribed form.
- A commercial invoice which indicates the buyer, seller, country or origin, price paid or payable, and a detailed description of the goods, including quantity, and a CCI that provides the remaining information.
Tariff classification
Canada classifies imported goods by using the international Harmonised Commodity Description and Coding System (HS). This classification is used to collect statistics and to assess whether any of the following provisions or duties apply:
- Prohibitions
- Quotas
- Anti-dumping or countervailing duties
- NAFTA provisions
- Other preferential tariff treatments
Importers have to provide a complete description of their goods so that the correct tariff classification can be assigned to those goods. Once goods are classified under the customs tariff they are given a 10-digit classification number. The first six digits of this number are standardised for all countries using the HS, the seventh and eighth digits are used for Canadian trade purposes to determine the duty rate, and the ninth and 10th digits are used for statistical purposes. Addenda to the customs tariff provide for various four-digit tariff codes that eliminate or reduce the customs duty for qualifying goods; for example, those used in goods manufactured in Canada or those used in certain industrial sectors.
Most goods imported are subject to customs duties (imposed under the customs tariff) and the GST; both these are collected by customs at the time of importation, and levied on the landed value of the goods. Customs also collect anti-dumping and countervailing duties on a few goods that have been found to be sold under unfair conditions.
Tariff classifications are not arbitrarily imposed. If the importer and Canada Border Services disagree about a classification, the importer can appeal the tariff classification to the Canadian International Trade Tribunal and, on points of law, to the Federal Court of Appeal / Supreme Court of Canada. Further information relating to tariff codes can be found at the Canada Border Services Agency website.
Tariff treatment
Goods imported into Canada may be subject to one of 11 separate tariff treatments that Canadian Customs impose. Goods imported into Canada from Australia are subject to the Most-Favoured Nation (MFN) tariff. To get the benefits of a particular tariff treatment, imported goods must also meet certification and direct shipment conditions. Country of origin markings are a requirement on many consumer and other products. Failure to comply with this regulation will result in goods being refused entry.
The Australia, New Zealand and NAFTA tariffs are the result of bilateral or trilateral agreements reached with Canada's trading partners.
Effective 1 January 1998 the British Preferential Tariff (BPT) treatment was terminated. The Uruguay Round MFN tariff rate reductions have eliminated the margins of preference for most BPT tariff items of key trade importance, with the exception of 171 tariff lines. These tariff lines will continue to receive tariff preferences equivalent to the former BPT rates by way of Orders-in-Council (OIC) under the Commonwealth Developing Countries (CDC) Remission Orders. Eligibility for these CDC rates would be restricted to imports from countries currently entitled to the BPT, with the exception of Australia and New Zealand - who are only eligible under certain items.
Goods imported from the few countries that are not members of the General Agreement on Tariffs and Trade (GATT), or from countries with which Canada has no other trade agreements, are subject to a 35 per cent duty under the General Tariff. Goods imported into Canada from all other countries are subject to the MFN tariff.
Rules of origin are used to see if goods qualify for a particular tariff treatment. Imported goods have to be classified correctly to see if they are covered under the tariff schemes. To get the benefits of a particular tariff treatment, imported goods must also meet certification and direct shipment conditions .
The value for duty is essentially the price paid for the goods (selling price) converted to Canadian funds, with certain additions or deductions. Examples of additions to the selling price include amounts paid for royalties and licenses and selling commissions. Examples of deductions include amounts for volume discounts received and brokerage fees the vendor pays. There are also other methods of valuation when goods are shipped on consignment and when there is no sale.
Packing, marking and labelling
Pre-packaged products sold in Canada are subject to statutory packaging and labelling requirements. These requirements are regulated by both the federal and provincial governments, although the majority is done federally. The Packaging and Labelling Act defines three mandatory labelling requirements: product identity, product net quantity
dealer's name and principal place of business.
A certificate of disinfection is required for straw, hay, peat, moss, or other raw packing materials of the soil. Plant protection import permits are also usually required for all plant materials taken into Canada.
Used sacks, bags, canvas and other similar packing materials are prohibited.
Packages that constitute a single shipment must be legibly marked and numbered on the outside.
Cartons for meat, poultry and meat and poultry products must be marked as prescribed and have the prior approval of the Canadian authorities. Importers should obtain the prescribed regulations from the Canadian Department of Agriculture in Ottawa.
No inedible gelatine, glue, grease, tallow or other inedible fat, meat or meat product, may enter Canada unless containers are legibly and plainly marked with the name and address of manufacturer or first dealer, plus the name of the product together with words 'Inedible - Unfit For Food'.
Information shown on labels is subject to minimum type size requirements.
A wide range of consumer items are now limited to a specific number of standard metric package sizes. This particularly relates to products such as laundry detergents, soaps, deodorants, shaving creams, hairsprays, shampoo, perfume, skin creams and other cosmetic goods.
Country of origin markings are a requirement on many consumer and other products. Failure to comply with this regulation will result in goods being refused entry.
Although the Universal Product Code (UPC or bar code) is not required or administered by government, virtually all retailers require the merchandise they carry to be labelled with a UPC. For more information concerning the UPC, contact GS1 Canada.
The regulation of the importation of food into Canada is the shared responsibility of several federal agencies and departments. The primary federal bodies involved are the Canadian Food Inspection Agency (CFIA) and the Department of Foreign Affairs and International Trade.
The CFIA mandates that all foods packaged for consumer use and imported into Canada must comply with basic food labelling requirements specified by the Food and Drugs Act and Regulations and the Consumer Packaging and Labelling Act and Regulations. The Guide to Food Labelling and Advertising is a comprehensive reference document providing current federal food labelling and advertising policies and regulatory requirements.
It should be noted that Canadian labelling requirements may differ significantly from those of the USA and other countries.
In the Province of Quebec, labelling of food products must be in French or have a French version displayed at least as prominently as the other language. Statements of national meat inspection and of plant number must be indicated on labels or cartons of imported meat
.
Labelling requirements include:
- The common name of the food
- A list of ingredients and components
- The name and address of the responsible party
- A net quantity declaration in metric
- A 'Best Before' date when required
Nutritional labelling is voluntary unless nutritional claims are made. The format and information provided must comply with the Guidelines on Nutritional Labelling developed by Health Canada and also with the Food and Drug Regulations.
Agricultural and fish products for which standards exist under the Meat Inspection Act, Canadian Agricultural Products Act and associated regulations, and the Fish Inspection Act may have additional labelling requirements (eg. grade or country of origin).
Labels of shipping containers, such as those for commercial, industrial or institutional use, are not required to be bilingual but require a net quantity declaration in either metric or Canadian measure. Other mandatory information such as the common name, the list of ingredients, etc. are also required.
Weights and measures
The metric system.
Insurance
Normal commercial practice.
Payments
Quotations are preferably in Canadian dollars, CIF (Incoterms 1990) Canadian destination (with FOB shown separately).
Usual terms of credit for goods to be retailed are from 30 to 90 days. Methods of payment vary.
Bills of exchange on various terms, banker's draft, as well as payment by cheque or cash, are all in use.
Public health requirements
Imports of animals, plants and their products (including fruit and vegetables, other foods, seeds, hay and forest products) require health certification issued by an approved authority in the country of origin. Many of these imports are also subject to inspection upon arrival.
Fruit and vegetables, honey, meat, fish and processed foodstuffs are subject to specific regulations. Exporters must confirm with their importers that their products meet the full requirements of the Canadian legislation.
The Government of Canada has consolidated all federally mandated food inspection and quarantine services and quarantine services into a single federal food inspection agency called The Canadian Food Inspection Agency.
Quality standards and labelling requirements for drugs and patent medicines are prescribed. Health Canada's Therapeutic Products Programme (TPP) is the national authority that evaluates and monitors the safety, effectiveness and quality of drugs, medical devices and other therapeutic products available to Canadians.
The TPP plays a national role in the control of illicit drugs and related substances in Canada Samples, plus details of ingredients, manufacturing methods, test reports and a sample label, must be submitted for the prior approval and allocation of a Drug Identification Number (DIN) by the TPP. The DIN is the number located on the label of prescription and over-the-counter drug products that have been evaluated by the TPP.
Documentation
Business number (BN)
The Government of Canada has introduced a more efficient numbering system for businesses. The BN replaces the many numbers businesses need to deal with government, thus helping them reduce costs and increase competitiveness. The BN has 15 digits: nine numbers to identify the business and two letters and four numbers identify the program and each account. A BN can be obtained from any Revenue Canada office.
Canadian businesses that register for one or more of the following accounts require a BN:
- Corporate income tax
- Importer/exporter account number
- Payroll (source) deductions (trust accounts)
- Goods and services tax
The BN import/export account must be shown on all customs documents. This applies to most shipments that enter Canada.
Importing commercial goods
A final accounting package must be submitted to Revenue Canada for shipments that enter into Canada. In most cases a complete accounting package consists of:
- Two copies of the cargo control document (CCD)
- Two copies of the invoice
- Two copies of a completed Form B3, Canada Customs Coding Form
- Any import permits, health certificates, or forms that other federal government departments require
- A Form A certificate of origin (when necessary)
Cargo control document
The carrier uses the cargo control document (CCD) to report any shipments to Revenue Canada. The CCD acts as Revenue Canada's initial record of the shipment's arrival. This document is also used for all shipments moved in-bond to an inland customs office, sufferance warehouse, or bonded warehouse.
Invoice
Three invoicing options can be used:
- The Canada Customs Invoice (CCI) should be used for shipments with an FOB value (Incoterms 1990) of Can$1200 and over.
- A commercial invoice containing the same information as the CCI should be used for shipments valued at less than Can$1200. This may be accompanied by the shipper's normal commercial invoice, provided that it contains all information as provided for in the above prescribed form.
- A commercial invoice which indicates the buyer, seller, country or origin, price paid or payable, and a detailed description of the goods, including quantity, and a CCI that provides the remaining information.
Exporters should ensure that all details required by the invoice are included and that the original is signed in ink.
Additional data must be included in customs invoices for footwear and textile products (including further specific details for garments, carpets, gloves and mittens).
Regardless of the type of invoice used, Customs Canada requires two copies of non-warehouse and three copies of warehouse document packages.
Customs coding form
The Customs Coding Form, Form B3, is used to account for commercial goods. Information must include:
- Importer name and the import/export account
- A description of the goods
- The direct shipment date
- The tariff treatment
- The country of origin
- The tariff classification
- The value for duty
- The appropriate duty or tax rates
- The calculation of duties owing
Certificates of origin
Certificates of origin are used to support the tariff treatment claimed in Form B3. The tariff treatment is linked to several trade agreements which may benefit the importer since they offer lower duty rates. It is not necessary to present the certificate at the time the shipment is released, but this must be produced at the time of accounting for the shipment.
There are four main types of certificates of origin. These apply if claiming lower customs duty rates for goods from the US or Mexico under the terms of:
- North American Free Trade Agreement (NAFTA)
- Canada-Israel Free Trade Agreement (CIFTA)
- Canada-Chile Free Trade Agreement (CCFTA)
There is also a Form A - General Preferential Tariff (GPT) certificate of origin. This is applicable to goods covered by the GPT. It is issued by an exporter in the country where the goods originated.
Bill of lading
Only special requirement is that ultimate destination must be shown. To Order bills acceptable.
Special certificates
A certificate of disinfection is required for certain packing materials (see 'Packing, marking and labelling').
Imports of animals, plants and their products (including fruit and vegetables, other foods, seeds, hay and forest products) require health certification issued by an approved authority in the country of origin (see 'Public health requirements').
A confirmation of sale form, available from the Canadian Department of Agriculture, is required for all shipments of fresh fruits and vegetables entering Canada.
Unless shipments of inedible gelatine, glue, grease, tallow and other inedible fat, meat and meat products are marked in the manner described under 'Packing, marking and labelling', a certificate made out on Special Form L (available from importers) must be submitted to customs.
Whisky, brandy and rum must be accompanied by a certificate of age, which must indicate a minimum age of two years.
Specific asbestos products must have a declaration of origin included on the invoice.
Taxation
The Goods and Services Tax (GST) is a multi-stage tax that applies to most goods and services sold or provided in Canada at a rate of seven per cent:
- The GST on imports is initially levied on the freight on board (FOB) price plus applicable Canadian customs duties.
- The GST on domestically produced goods is initially imposed at the manufacturer’s level.
- GST is levied at the retail level on the provincial sales tax (PST) paid value, ie. the value including the PST.
A limited range of goods and services have no GST applied:
- Sales of basic groceries and prescription drugs.
- Services including sales of used housing, financial services, some health, legal, and educational services, services by governments and other specified public bodies, and activities by charities and non-profit organisations.
Excise tax of 10 per cent of the duty-paid value is levied in addition to the GST on specific goods and services. Goods subject to excise include:
- jewellery
- lighters
- playing cards
- cigarettes and tobacco
- wine
- beer and other alcoholic beverages
- gasoline
- aviation gasoline
- diesel fuel
Provincial retail sales taxes (PST) ranging from six to 10 per cent, are levied in all provinces except Alberta, the Northwest Territories and the Yukon.
The harmonised sales tax (HST) for imported goods is applicable in the provinces of New Brunswick, Nova Scotia, and Newfoundland instead of the GST and PST. The HST is at a rate of 15 per cent, comprising a seven per cent federal part and an eight per cent provincial tax.
More detailed information on Canadian taxation requirements is available from Canada Customs and Revenue Agency.
Business travel
All airports in Canada are much the same in transport structure. There are always taxis or limousines available, with a typical taxi ride to the CBD costing about C$30-40. Shuttle buses to various locations are also available.
Other forms are connecting buses to subways systems in which times and routes are listed at the departing terminals. The major bus-service operator is Greyhound Canada and the trains are handled by VIA Rail Canada.
The complexity of Canada’s domestic airlines network is immense. All cities with the exception of a few are covered in a web of flight connections. In 2000, Air Canada acquired the operations of Canadian Airlines and the merger is complete. There are a number of charter operators and airlines offering limited services both internationally and within Canada.
Often the least expensive way to rent a car is either to take a fly-drive package or book in advance with a major rental company. Some recommended companies are Avis, Budget, and Hertz.
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