Canada

Distributing a product

Evolution of the sector

The size of the country, some 10 million km2, complicates distribution on a national scale. Big companies have set up nerve centers for warehousing and redistribution of goods all over Canada. Most of these redistribution centers are located in Halifax, Montreal, Toronto and Vancouver.
The difficulty involved in getting to the various regions, the distinctive features of each of them, make marketing a product complex. The Office of Consumer Affairs is the national authority for monitoring and regulating consumption in Canada.

Market shares

In the 1990s, the Canadian distribution market underwent changes after the arrival of American distributors like Costco (cash & carry reserved for professionals), Wal-Mart (hypermarkets) and Home-Dépot (DIY-hardware-decoration).
The food trade sector is very concentrated and dominated by a few big groups especially the national names Sobey and Loblaw with the American Wal-mart.

Organizations in the retail sector

AMDEQ (Association of shopkeepers, convenience storekeepers and grocers of Quebec)
Canadian Federation of Independent Grocers
Canadian Council of Grocery Distributors

Market access procedures

International Conventions

Member of World Trade Organisation
Member of OECD
Party to the Kyoto protocol
Party to the Washington convention on International trade in endangered species of wild fauna and flora
Party to the Basel convention on the Control of Transboudary Movements of Hazardous Wastes and their disposal
Party to the Montreal protocol on Substances that deplete the Ozone Layer
Wassenaar arrangement on export controls for conventional arms and dual-use goods and technologies

International economic cooperation

Member of the NAFTA (North American Free Trade Agreement)
Member of the NACC (North American Competitiveness Council)
Full member of the OAS (Organization of American States)
Member of the Commonwealth
Participates in the forums of the APEC (Asia Pacific Economic Cooperation)

Non tariff barriers

The Canada Customs Act which regulates the Canadian import system, corresponds to a free trade model in which most imports do not need any authorization. There are however what are known as tariff quotas, especially for wheat, barley, beef and cheese. To be granted this quota you must request a General Import Permit, for which you must produce a pro forma invoice at the Export and Import Controls Bureau of the Ministry of Foreign Trade.
Some goods are prohibited, especially importing second hand motorized vehicles, except for vehicles coming from the USA (the rules are becoming more flexible for Mexico)
The rules of origin allowing reduction of duties, especially for textiles, have been draconian since the agreements within the NAFTA (annexe 401 on the original rules, incorporated afterwards in national legislation). These rules are considerably favorable to products which have proof of their origin in the USA.
Moreover, Canada is one of the big users of anti-dumping measures, with more than 85 products concerned (SIMA, Special Import Measures Act). These measures affect 35 countries or Customs areas (including the EU, for example). More than 50% of the products concerned are metallurgical.
For further information about import regulations and procedures in Canada, please consult the article Importing Goods into Canada produced by the Canada Border Services Agency.

Customs duties and taxes on imports

The average rate is about 4.8%.

To know the 2008 Customs tariff in Canada, please consult the article Customs Tariff produced by the Canada Border Services Agency.

Customs classification

Yes

Import procedures

To know what to do to import a product into Canada, consult the Guide to Importing of the Canada Border Services Agency.

 

For imported goods to clear Customs the following documents are needed: release with full accounting and payment (paper option); release on minimum documentation (RMD) (paper or EDI option); G7 Import One Step Release on Full Documentation (RFD) (EDI option).
For further information, consult the Canada Border Services Agency website.

The case of samples

For import, export and re-export of commercial samples the ATA carnet is generally used. It must be written on the product that it is a free sample and that it may not be sold. A maximum quantity or value may however be applied.
For further information, consult the Canada Business website.

For further information

Canada Border Services Agency
Foreign Affairs and International Trade Canada

Organizing goods transport

Main useful means

Road transport of goods accounts for 50% of commercial freight.
Vancouver is Canada's biggest port and is constantly classified among the first five North American ports in terms of tonnage of imports and exports. It is the biggest bulk goods port on the west coast of North America with a tonnage of more than 79.3 million tonnes in 2006.
All the ports of eastern Canada amounted to 68.9 MT in 2006.

Ports

Port of Montreal
Port of Quebec
Port of Halifax
Port of Toronto
Port of Vancouver
Alliance of the Ports of Canada, the Caribbean, Latin America and the United States

Airports

Montreal Airport
Vancouver International Airport
Calgary Airport
Ottawa Airport
Toronto Airport

Sea transport organizations

Transport Canada

Air transport organizations

Canadian Air Transport Security Authority

Road transport organizations

Transport Canada: Road
Canada Border Services Agency

Rail transport organizations

Canadian Transportation Agency