Required Report - public distribution

**Date:** 12/7/2006

**GAIN Report Number:** CA6057

CA6057

**Canada**

**Exporter Guide**

**Annual**

**2006**

**Approved by:**

![](media/image1.wmf)Lisa Anderson

U.S. Embassy

**Prepared by:**

George Myles and Marilyn Bailey

**Report Highlights:**

A practical guide for U.S. food exporters in the Canadian market.

Includes PSD Changes: No

Includes Trade Matrix: No

Annual Report

Ottawa \[CA1\]

\[CA\]

Table of Contents

[SECTION I. MARKET OVERVIEW 4](#section-i.-market-overview)

[Consumer Trends in Retail Food 5](#consumer-trends-in-retail-food)

[SECTION II. EXPORTER BUSINESS TIPS; SERVICES; FOOD REGULATION
7](#section-ii.-exporter-business-tips-services-food-regulation)

[A) Export Services for U.S. Food and Agricultural Exporters
7](#a-export-services-for-u.s.-food-and-agricultural-exporters)

[B) Business Customs Import Procedures
8](#b-business-customs-import-procedures)

[Customs Brokers 8](#customs-brokers)

[Credit Checks 9](#credit-checks)

[The Commercial Import Process 9](#the-commercial-import-process)

[Import Service Centers 9](#import-service-centers)

[Non‑Resident Importers 10](#nonresident-importers)

[Food Brokers 10](#food-brokers)

[C) Food Regulation 10](#c-food-regulation)

[Labeling Requirements 10](#labeling-requirements)

[i). General Labeling Requirements
10](#i.-general-labeling-requirements)

[The Guide to Food Labeling and Advertising in Canada
10](#the-guide-to-food-labeling-and-advertising-in-canada)

[ii). Label Review 11](#ii.-label-review)

[Labeling of Shipping Containers 12](#labeling-of-shipping-containers)

[Nutrition Labeling 12](#nutrition-labeling)

[Q&A on New Nutrition Labeling Regulations
14](#qa-on-new-nutrition-labeling-regulations)

[Tariffs and Tariff Rate Quotas (TRQs)
16](#tariffs-and-tariff-rate-quotas-trqs)

[Packaging and Container Regulations
17](#packaging-and-container-regulations)

[Food Additive Regulations 17](#food-additive-regulations)

[Pesticide and other Contaminants 17](#pesticide-and-other-contaminants)

[Other Regulations and Requirements
18](#other-regulations-and-requirements)

[Inspection and Registration Fees 18](#inspection-and-registration-fees)

[Beef Export Verification 18](#beef-export-verification)

[Container Sizes: Processed Meats 18](#section-7)

[Requirements for Fresh Fruits and Vegetables
18](#requirements-for-fresh-fruits-and-vegetables)

[Processed Horticultural Products 19](#processed-horticultural-products)

[Other Specific Standards 20](#other-specific-standards)

[Fish and Seafood 20](#fish-and-seafood)

[Novel Foods (Genetically Modified Foods)
20](#novel-foods-genetically-modified-foods)

[Wine, Beer and Other Alcoholic Beverages
21](#wine-beer-and-other-alcoholic-beverages)

[Organic Foods 21](#organic-foods)

[Certification 22](#certification)

[Kosher Foods 22](#kosher-foods)

[Pet Food 22](#pet-food)

[Labeling 22](#labeling)

[Animal Health Requirements related to Pet Food
23](#animal-health-requirements-related-to-pet-food)

[Livestock Feeds 23](#livestock-feeds)

[Diet-Related Health Claims 24](#diet-related-health-claims)

[Sample Products 24](#sample-products)

[Test Marketing: Processed Food Products
24](#test-marketing-processed-food-products)

[Temporary Marketing Authorization Letter (TMAL)
25](#temporary-marketing-authorization-letter-tmal)

[Copyright and/or Trademark Laws 26](#copyright-andor-trademark-laws)

[SECTION III. MARKET SECTOR STRUCTURE AND TRENDS
26](#section-iii.-market-sector-structure-and-trends)

[Market Sector Reports 27](#market-sector-reports)

[Title of Report 27](#title-of-report)

[Date 27](#date)

[SECTION IV. BEST HIGH-VALUE PRODUCT PROSPECTS
28](#section-iv.-best-high-value-product-prospects)

[What's Hot? 28](#whats-hot)

[What Products are Hot 28](#what-products-are-hot)

[SECTION V. ROAD MAP FOR MARKET ENTRY
30](#section-v.-road-map-for-market-entry)

[A. Entry Strategy 30](#a.-entry-strategy)

[SECTION VI. QUESTIONS AND ANSWERS
31](#section-vi.-questions-and-answers)

[SECTION VII. CONTACTS 33](#section-vii.-contacts)

[Summary of Useful Websites 33](#summary-of-useful-websites)

[APPENDIX I. Statistics 34](#appendix-i.-statistics)

[Table A. Key Trade and Demographic Information
34](#table-a.-key-trade-and-demographic-information)

[Table B. Consumer Food & Edible Fishery Product Imports
35](#table-b.-consumer-food-edible-fishery-product-imports)

[Table C. Top 15 Suppliers of Consumer Foods & Edible Fishery Products
36](#table-c.-top-15-suppliers-of-consumer-foods-edible-fishery-products)

# SECTION I. MARKET OVERVIEW

# 

Canada is the No. 1 market for U.S. agricultural exports. In 2005, U.S.
agricultural exports to Canada reached a record \$10.6 billion. U.S.
agricultural exports to Canada accounted for 17% of total U.S. food and
agricultural product exports of \$63.2 billion. Consumer-oriented
agricultural products accounted for 77 percent of total U.S. food and
agricultural product sales to Canada in 2005, with fresh and processed
fruits and vegetables, snack foods, processed horticultural products,
and red meat products as the category leaders. American products account
for more than 60% of total Canadian agricultural imports.

Canada is also an important market for U.S. fish and forestry exports.
Canada is the No. 2 market for U.S. fish and seafood exports and sales
during 2005 reached a record \$681 million. Despite being a major
producer and world exporter of forest products, Canadian imports of U.S.
forest products reached \$2.1 billion in 2005. Combined, total U.S.
farm, fish and forestry product exports to Canada reached a record
\$13.4 billion during 2005, \$1.2 billion more than to Mexico, the next
largest market destination. Total bilateral agricultural trade between
the U.S. and Canada reached \$22.9 billion in 2005, more than \$62
million per day. Two-way truck traffic alone exceeds 7,000 trucks/day,
an average of almost one truck every other minute, 24 hours a day.

Under the tariff elimination provisions of the North American Free Trade
Agreement (NAFTA), the majority of U.S. agricultural products have
entered Canada duty-free since January 1, 1998. On December 4, 1998 the
United States and Canada signed a Record of Understanding, an agreement
to further open Canadian markets to U.S. farm and ranch products. Some
tangible benefits of the agreement are already accruing to the U.S.
agricultural industry.

  ----------------------------------- -----------------------------------
  **Canadian Market Overview          
  Summary**                           

  **Advantages**                      **Challenges**

  Proximity                           Low value of Canadian currency

  Similar lifestyles and consumption  Differences in standard package
  trends                              sizes

  Wide exposure to American culture   Differences in chemical residue
                                      tolerances

  Frequent business and personal      Differences in nutrition labeling
  trips to U.S.                       

  Duty free tariff treatment for most Bilingual (English & French)
  products under NAFTA                labeling

  Ease of entry for business travel   Tariff rate quotas for certain
                                      products

  Awareness and demand for product    
  brands                              

  High U.S. quality and safety        
  perceptions                         

  Similar food shopping patterns      
  ----------------------------------- -----------------------------------

Trade with Canada is facilitated by proximity, common culture, language,
similar lifestyle pursuits, and the ease of travel among citizens for
business or pleasure. Many American products have gained an increased
competitive edge over goods from other countries as the result of the
FTA/NAFTA. Canada's grocery product and food service trades have been
quick to seize opportunities under FTA/NAFTA, which permit them to
expand their geographical sourcing area to include the United States.
Declining import duties under the trade agreements and an easing of
Canadian packaging requirements for processed horticultural products for
the food service market have resulted in significant gains in the
Canadian market for U.S. consumer-ready foods and food service foods.

## Consumer Trends in Retail Food

Canada's population at July 1, 2006 was estimated at 32.6 million. The
growth rate is relatively slow at about 1.2%. The popularity of U.S.
food products is very high and Canadian consumers are keenly aware of
new product offerings in the United States. The closer integration of
the North American food market under the NAFTA means that U.S. food and
agricultural products are in high demand by Canadian retailers. There
are some important trends in the Canadian retail food market that can
help U.S. food exporters better understand the market. The following
highlights are taken from an Agriculture and Agri-Food Canada review
with updates and/or additional information incorporated by the Office of
Agricultural Affairs at the U.S. Embassy in Ottawa. For more information
on food marketing and trends in Canada, see Section III on Market Sector
Structure.

Demographics

-   Population growth is slow -1.2% a year

-   Graying population - double the number of seniors compared to 25
    years ago.

-   In 1984, persons 50 years and older accounted for 23% of the
    population. By 2005, the percentage had increased to 30%

-   Family structure - household size 3.0 people

Graying Population

-   Seniors well off financially, well educated, and willing to spend

-   Have time to shop for what they want

-   Becoming preoccupied with health and product quality

-   Demanding smaller portions, single packages, easy to open and
    easy-read labels

Cultural Diversity

-   Ethnic diversity - Asia is the major source of immigrants (more than
    half of all immigrants during the 1990s)

-   The cultural diversity is an increasingly important force in the
    marketplace, particularly in urban centers

-   Ethnic foods like Pad Thai and Shwarmas are gaining in popularity

-   Canadian ethnic diversity is different from U.S. (less Hispanic
    influence)

Economic Trends

-   Real personal disposable income growth has experienced a slowdown
    during the past ten years but price inflation has been low

-   Dual-income families the norm but single-parent families also
    prominent... many more women in the work force

Canadian Food Expenditures

-   Real spending on food & non-alcoholic beverages has not increased in
    the 1990s\.... about 12% of average Canadian household income

-   Spending on food outside the home (restaurants) increasing but lags
    behind the U.S.

Market Place Behavior

-   People still want value and will price shop

-   More people own microwaves than barbeques

-   A lack of time to shop and prepare meals 

-   Increased demand for convenience foods, home delivery, \"ingredient
    solutions,\" and home meal replacements

-   The majority of fish and seafood sales are in foodservice

-   Kosher food sales are showing a rapid rise

Buying Patterns

-   More microwavable products

-   More convenience, hand-held foods

-   More private label products

Retail Store Trends

-   Grocery stores are growing in size\...up to 50,000 square feet and
    40,000 different food & non-food items

-   More ready-made foods... to compete with fast food take-out food
    service outlets

-   The big supermarkets are locked in a market share battle against the
    big box stores, and other non-traditional chain stores

-   Major chains have organic sections

Red Meat and Poultry Demand

-   Canadians spend more on meat than on any other food category

-   Poultry meats have performed well compared to other meats\...the per
    capita retail weight of poultry meat is greater than either pork or
    beef

# SECTION II. EXPORTER BUSINESS TIPS; SERVICES; FOOD REGULATION

## A) Export Services for U.S. Food and Agricultural Exporters

The Foreign Agricultural Service, United States Department of
Agriculture, provides programs, information, and services to U.S.
exporters to aid in exporting U.S. food, farm and forest products to
foreign markets. These programs include:

*Foreign Buyers List* is a product‑ and country‑specific listing of
agricultural importers worldwide.

*U.S. Suppliers* puts your company\'s name and product listings in a
database that foreign buyers access on‑line or through USDA/FAS Overseas
offices.

For more information on these services, contact:

Office of Trade Programs

AgBox 1052

OTP/FAS/USDA

Washington, DC 20250-1052

Webpage: [http://www.fas.usda.gov/buying.html]{.underline}

Foreign Buyer List Info:

Phone: (202) 690-3416

Fax: (202) 690-4374

Supplier List Info:

Phone: (202) 720-7409 or 690-3421

Fax: (202) 690-4374

State Departments of Agriculture

The state departments of agriculture and associated organizations also
promote U.S. food and agricultural exports and are an additional
valuable source of information. The National Association of State
Departments of Agriculture (NASDA) represents all 50 State departments
of agriculture and those from the trust territories of Puerto Rico,
Guam, American Samoa, and the Virgin Islands. In addition, there are
four regional organizations associated with their respective departments
of agriculture. Prospective exporters are encouraged to check with their
respective state and/or regional organizations for assistance. Website:
[http://www.nasda.org]{.underline}

Department of Commerce District Offices

Before exporting, U.S. firms are also encouraged to contact the nearest
U.S. Export Assistance Center (USEAC) located in major U.S. cities.
These offices can provide up-to-date information on required export
documentation and where to obtain required forms. Most Canadian forms
are available from selected U.S. commercial printers. Each USEAC office
has a trade specialist who can provide assistance with export
documentation. For a full listing of USEAC offices, go to:
[http://www.commerce.gov/statemap2.html]{.underline}

The U.S. Commercial Service offers valuable assistance to help your
business export goods and services to markets worldwide. From this site
you can access a global listing of trade events, international market
research, and practical tools to help with every step of the export
process. Web page: <http://export.gov/>

Country Commercial Guides

The Country Commercial Guides (CCG) are prepared by U.S. Embassy staff
annually and contain information on the business and economic situation
of foreign countries and the political climate as it affects U.S.
business. Each CCG contains the same chapters, and an appendix, which
include topics such as marketing, trade regulations, investment climate,
and business travel. Available at
[http://export.gov](http://export.gov/)

## B) Business Customs Import Procedures

### Customs Brokers

Some U.S. firms choose to obtain the services of a Canadian customs
broker (a private company operating as a trade facilitator) to help them
comply with Canadian import requirements and in some cases, market their
product. Canada Border Services Agency (CBSA) licenses customs brokers
to carry out customs‑related responsibilities on behalf of their
clients. A broker\'s services include:

-   obtaining release of the imported goods;

-   paying any duties that apply;

-   obtaining, preparing, and presenting or transmitting the necessary
    documents or data;

-   maintaining records;

-   responding to any Canada Customs and Revenue Agency concerns after
    payment.

Clients have to pay a fee for these services, which the brokerage firm
establishes.

Importers who do not wish to transact business with the CBSA directly
may authorize an agent to transact business on their behalf. Although
importers may use an agent to transact business with the CBSA, the
importer is ultimately responsible for the accounting documentation,
payment of duties and taxes, and subsequent corrections such as
re‑determination of classification, origin and valuation. The importer
remains liable for all duties owing until either the importer or the
agent pays them.

Agents are required to obtain written authorization from their clients
in order to transact business on behalf of their clients. This business
may include but is not limited to:

-   Registering for a Business Number (BN), Importer/Exporter Account

-   Providing assistance in cases involving the Special Import Measures
    Act (SIMA)

-   Submitting refund requests (B2s)

-   Preparing release (interim accounting) documentation

-   Preparing final accounting documentation

-   Remitting payment of duties and taxes to the Receiver General of
    Canada

For additional information, contact:

Canadian Society of Customs Brokers

111 York Street

Ottawa, Ontario

Canada K1N 5T4

Telephone: (613) 562‑3543

Facsimile: (613) 562-3548

Webpage: [http://www.cscb.ca](http://www.cscb.ca/)

Searchable list of members:
[http://www.cscb.ca/040/md_e.asp]{.underline}

After becoming familiar with the Canadian marketplace, some U.S.
exporters take advantage of a special provision of Canada Customs rules
that permits them to apply for Non-Resident Importer status. This
enables them to control, sell, and distribute the product without
intermediaries. One provision of the application for Non-Resident
Importer is a requirement to make books and records available to
Canadian Customs auditors and provide for their travel costs, if
necessary, to their headquarters in the United States. For more
information, contact the Canada Border Services Agency. The website is:
<http://www.cbsa-asfc.gc.ca/menu-e.html>

### Credit Checks

Besides the well-known private credit service checks that may be
available, the U.S. Commercial Service (USCS) Trade Administration
offers a World Trade Data Report (WTDR) service designed to verify the
credit worthiness of companies in Canada. U.S. companies seeking more
information on the WTDR service should contact the closest U.S. Export
Assistance Center (USEAC) in the United States. The USCS also offers
additional services to help U.S. exporters.

### The Commercial Import Process

In order to bring goods into Canada, importers must provide the proper
documents to Canada Customs and Revenue Agency including:

-   two copies of the cargo control document (CCD);

-   two copies of the invoice;

-   two copies of a completed Form B3, Canada Customs Coding Form;

-   one copy Form A ‑ Certificate of Origin (when necessary);

-   any import permits, health certificates, or forms that other federal
    government departments require; calculate and declare the value for
    duty of the imported goods (where necessary) according to the
    valuation provisions of the Customs Act; make sure that the goods
    are properly marked with their country of origin; pay any duties
    that apply.

### Import Service Centers

The Canadian Food Inspection Agency's Import Service Centers (ISC) are a
control point in the import process and can respond to import
information requests electronically or by fax. The ISC works closely
with the Canada Border Services Agency in determining the Customs
release of food items. In addition, ISC is equipped to handle telephone
inquiries regarding import requirements for all commodities regulated by
the CFIA.

CFIA Import Service Centers Across Canada

Eastern ISC

7:00 a.m. to 11:00 p.m.(local time)

Telephone: 1‑877‑493‑0468 (Canada/U.S.)

1‑514‑493‑0468 (all other countries)

Fax: 1‑514‑493‑4103

Central ISC

Telephone: 1‑800‑835‑4486 (inside Canada or U.S.)

1‑905‑612‑6285 (all other countries)

Fax: 1‑905‑612‑6280

Western ISC

7:00 a.m. to 12:00 a.m.(local time)

Telephone: 1‑888‑732‑6222 (inside Canada or U.S.)

1‑604‑666‑7042 (all other countries)

Fax: 1‑604‑270‑9247

EDI: 1‑604‑666‑7073

### Non‑Resident Importers

Non‑Resident Importers are companies that import goods into Canada but
which have addresses outside of Canada. These companies are required to
have a Business Number (BN) and an import/export account registered with
the Canadian Border Services Agency. For more information:
[http://www.cbsa-asfc.gc.ca/import/registerintro-e.html]{.underline}

### Food Brokers

For U.S. companies entering the Canadian market, it is helpful to find a
Canadian food broker to help with the logistics of entering the country
in addition to marketing products. For a partial listing of Canadian
food brokers refer to report CA5068 on the FAS web site under Attaché
Reports. [http://www.fas.usda.gov]{.underline}

## C) Food Regulation

### Labeling Requirements 

### i). General Labeling Requirements

The basic packaging and labeling requirements necessary for U.S.
agricultural exports to Canada are:

-   labels in English and French,

-   net quantities in metric,

-   list of ingredients,

-   durable life date (if shelf life 90 days or less),

-   common name of product,

-   company name and address,

-   minimum type size specifications,

-   conformity to standardized package sizes stipulated in the
    regulations, and

-   Country of origin labeling on shipping container

Although the Universal Product Code (UPC) or bar code is not required or
administered by government, virtually all retailers require products to
be labelled with a UPC.

### 

### The Guide to Food Labeling and Advertising in Canada

The Canadian Food Inspection Agency has prepared a Guide to Food
Labeling and Advertising that details the regulatory requirements for
selling packaged foods in Canada. The CFIA Guide includes information
on:

-Basic Labeling Requirements

-Advertising Requirements

-Claims as to the Composition, Quality, Quantity and Origin of Foods

-Nutrition Labeling

-Nutrient Content Claims

-Health‑Related Claims

-Other Product Specific Requirements

The full guide is available on the CFIA website at:
<http://www.inspection.gc.ca/english/bureau/labeti/guide/guidee.shtml>

**Enforcement**

The CFIA has the authority to refuse entry, detain, return, or remove
from retail shelves any imported processed food product that does not
meet the federal food labeling requirements.

### ii). Label Review

### 

The Canadian Food Inspection Agency consolidates federal food label
review under its Food Labeling Information Service. The labeling
service, designed particularly for new entrants in the marketplace who
are not familiar with the Canadian regulatory system, is provided at
specified regional locations across Canada. These offices coordinate the
requirements of the aforementioned federal departments to simplify
product approval and label compliance. It is recommended that U.S.
exporters submit their labels to the regional office closest to the
targeted marketing area. In the large Ontario market, the "label window"
email service (see below) can often provide prompt answers to general
and specific label questions.

**British Columbia**

Canadian Food Inspection Agency**\
**400-4321 Still Creek Avenue\
Burnaby, British Columbia V5C 6S7\
Tel. (604) 666-6513\
Fax (604) 666-1261

Canadian Food Inspection Agency**\
**1905 Kent Road\
Kelowna, British Columbia V1Y 7S6\
Tel. (250) 470-4884\
Fax (250) 470-4899

Canadian Food Inspection Agency**\
**103-4475 Viewmont Avenue\
Victoria, British Columbia V8Z 6L8\
Tel. (250) 363-3455\
Fax (250) 363-0336

**Alberta**

Canadian Food Inspection Agency**\
**7000 - 113 Street, Room 205\
Edmonton, Alberta T6H 5T6\
Tel. (780) 495-3333\
Fax (780) 495-3359

Canadian Food Inspection Agency**\
**110 Country Hills Landing NW, Suite 202\
Calgary, Alberta T3K 5P3\
Tel. (403) 292-4650\
Fax (403) 292-5692

**Saskatchewan**

Canadian Food Inspection Agency**\
**301-421 Downey Road\
Saskatoon, Saskatchewan S7N 4L8\
Tel. (306) 975-8904\
Fax: (306) 975-4339

**Manitoba**

Canadian Food Inspection Agency\
269 Main Street, Room 613\
Winnipeg, Manitoba R3C 1B2\
Tel. (204) 983-2220\
Fax (204) 983-6008

**Ontario**

Tel. 1-800-667-2657\
e-mail: labelwindow@inspection.gc.ca

Central Region:

Canadian Food Inspection Agency**\
**709 Main Street West\
Hamilton, Ontario L8S 1A2\
Tel. (905) 572-2201\
Fax (905) 572-2197

Northeast Region:

Canadian Food Inspection Agency\
38 Auriga Drive, Unit 8\
Ottawa, Ontario K2E 8A5\
Tel. (613) 274-7374\
Fax (613) 274-7380

Toronto Region:\
\
Canadian Food Inspection Agency**\
**1124 Finch Avenue West, Unit 2\
Downsview, Ontario M3J 2E2\
Tel. (416) 665-5055\
Fax (416) 665-5069

Southwest Region:

Canadian Food Inspection Agency**\
**1200 Commissioners Road East, \# 19\
London, Ontario N5Z 4R3\
Tel. (519) 691-1300\
Fax (519) 691-0148

**Quebec**

Canadian Food Inspection Agency\
25 des Forges Road, Suite 418\
Trois-Rivières, Québec G9A 6A7\
Tel. (819) 371-5207\
Fax (819) 371-5268

**Nova Scotia**

Canadian Food Inspection Agency**\
**P.O. Box 1060\
1992 Agency Drive\
Dartmouth, Nova Scotia B2Y 3Z7\
Tel. (902) 426-2110\
Fax (902) 426-4844

**New Brunswick**

Canadian Food Inspection Agency**\
**850 Lincoln Road\
P.O. Box 2222\
Fredericton, New Brunswick E3B 5G4\
Tel. (506) 452-4964\
Fax (506) 452-3923

**Prince Edward Island**

Canadian Food Inspection Agency\
690 University Avenue\
Charlottetown, Prince Edward Island C1E 1E3\
Tel. (902) 566-7290\
Fax (902) 566-7334

**Newfoundland**

Canadian Food Inspection Agency\
Northwest Atlantic Fisheries Centre\
P.O. Box 5667\
St. John\'s, Newfoundland A1C 5X1\
Tel. (709) 772-5519\
Fax (709) 772-5100

### Labeling of Shipping Containers

Labels of shipping containers are exempt from bilingual labeling
requirements. The outer container requires a product description, the
name and address of the U.S. company and a net quantity declaration in
either metric or Imperial measure. If the food in the inner container(s)
is not for sale directly to consumers (i.e., foodservice, etc.), that
label may also be in either French or English, but all other mandatory
label information, such as the list of ingredients, is required to be
shown.

## 

### Nutrition Labeling

On December 12, 2005, Canada's mandatory nutrition labeling regulations
for prepackaged foods come into force. Only small manufacturers,
domestic or foreign, with gross sales of C\$1 million or less in Canada
have an additional two years to comply. The U.S. nutrition panel is not
permitted on the labels of foods sold in Canada. U.S. prepackaged food
product exporters are advised to familiarize themselves with Canadian
nutrition labeling regulations and to bring their packaging into
compliance to avoid entry refusals at the border or product detention.
The Canadian Food Inspection Agency has set up a special web page to
help food companies comply with the new regulations:

[http://www.inspection.gc.ca/english/fssa/labeti/nutrition-pagee.shtml]{.underline}

Samples:

The sample Nutrition Facts tables displayed below are from Schedule L of
the *Food and Drug Regulations* that illustrate the core information
that is mandatory for most nutrition facts tables, and additional
information that may be declared on the sample expanded version. They
are presented for informational purposes only. U.S. company labeling
officers are advised to consult the official CFIA versions from the
nutrition labeling website.

Mandatory Core Information Table

![](media/image2.jpeg){width="2.2777777777777777in"
height="3.0833333333333335in"}

###### Expanded Version 

![](media/image3.jpeg){width="1.78125in" height="6.239583333333333in"}

## Q&A on New Nutrition Labeling Regulations

What Do the New Regulations Cover?

The amendments to the *Food and Drug Regulations* pertaining to
Nutrition Labeling, Nutrient Content Claims and Health Claims require
that all prepackaged foods, with some exceptions, carry a Nutrition
Facts table. The Regulations also set out requirements for nutrient
content claims and health claims.

When Do They Come Into Force?

The requirement for prepackaged foods to carry a Nutrition Facts table
came into force on December 12, 2005. For food manufacturers with total
annual sales (in Canada) of less than C\$1.0 million for the 12-month
period prior to December 12, 2002, the regulations come into force on
December 12, 2007.

What Foods Require a Nutrition Facts Table?

The Nutrition Facts table is mandatory for most prepackaged foods. There
are a few exceptions and exemptions. It may also be used on
non-prepackaged foods or on prepackaged foods that are exempt from
nutrition labeling on a voluntary basis.

Are U.S. Food Products Required to Comply with the New Nutrition
Labeling Requirements?

Yes, imported products must meet the same labeling requirements as foods
produced in Canada. U.S. food products have the same transition time
period to comply as domestic food products and are subject to the same
level of enforcement action as domestic products.

Do U.S. manufacturers qualify for the longer transition period?

Yes, if the U.S. manufacturer had less than \$1.0 million (Canadian) in
revenues from sales of food in Canada for the 12 months prior to
December 12, 2002. Importers and distributors will have to ensure that
foods that they sell are compliant with the nutrition labeling
regulations by December 12, 2005 unless the U.S. manufacturer is
considered to be a small manufacturer.

Does Canada accept the U.S. Nutrition Facts Table on foods sold in
Canada?

No, the nutrition panels of other countries are not permitted on the
labels of foods sold in Canada. The use of both the Canadian Nutrition
Facts table and the U.S. Nutrition Facts Table together is also not
permitted.

What Foods are Specifically *Prohibited* from Declaring a Nutrition
Facts Table?

The following foods must not display a Nutrition Facts table:

-   formulated liquid diets;

-   infant formula;

-   foods containing infant formula;

-   meal replacements;

-   nutritional supplements (that meet the requirements of Section
    B.24.201 of the Food & Drugs Act); and

-   foods represented for use in very low energy diets.

These products have their own nutrition labeling requirements that are
different from those of the Nutrition Facts table. Consequently, they
are prohibited from using the Nutrition Facts table and the titles
\"Nutrition Facts\", \"Valeur nutritive\" or \"Valeurs nutritives\".
However, they may adopt the Nutrition Facts table format to display
their nutrition information.

What Prepackaged Foods are Exempt From Mandatory Nutrition Labeling?

*(Excerpt from the 2003 CFIA Guide to Food Labeling and Advertising,
Section 5.3)*

The following products are exempt from displaying a Nutrition Facts
table:

+---+--------------------------------------------------------------------+
| a | foods, such as spices and some bottled waters, for which all the   |
| \ | nutritional information (other than serving of stated size) set    |
| ) | out in column 1 of the table to B.01.401 may be expressed as       |
|   | \"0\";                                                             |
+---+--------------------------------------------------------------------+
| b | beverages with an alcohol content of more than 0.5 %;              |
| \ |                                                                    |
| ) |                                                                    |
+---+--------------------------------------------------------------------+
| c | fresh vegetables and fruits without added ingredients, oranges     |
| \ | with colour, and fruit and vegetables coated with paraffin wax or  |
| ) | petrolatum;                                                        |
|   |                                                                    |
|   | This category includes fresh herbs such as parsley, basil, thyme,  |
|   | etc. (but not dried herbs); sprouts; and fruits and vegetables     |
|   | that are minimally processed (e.g., washed, peeled, cut-up,        |
|   | shredded, etc.), including mixtures of fruits and vegetables, such |
|   | as bagged mixed salad and coleslaw (without dressing, croutons,    |
|   | bacon bits, etc.).                                                 |
|   |                                                                    |
|   | *NOTE:* The exemption is lost if any health claim set out in the   |
|   | table following B.01.603 is made, including the following: \"A     |
|   | healthy diet rich in a variety of vegetables and fruit may help    |
|   | reduce the risk of some types of cancer,\" \[B.01.401 (3)(e)(ii),  |
|   | and item 4 of the table following B.01.603\].                      |
+---+--------------------------------------------------------------------+
| d | raw, single ingredient meat, meat by-product, poultry meat, and    |
| \ | poultry meat by-product;                                           |
| ) |                                                                    |
|   | *NOTE:* Prepackaged ground meat, ground meat by-product, ground    |
|   | poultry meat and ground poultry meat by-product must always carry  |
|   | a Nutrition Facts table \[B.01.401(3)(d)\].                        |
+---+--------------------------------------------------------------------+
| e | raw, single ingredient marine or freshwater animal products (such  |
| \ | as fish, crustaceans, etc.);                                       |
| ) |                                                                    |
+---+--------------------------------------------------------------------+
| f | foods sold only in the retail establishment where the product is   |
| \ | prepared and processed, including products made from a pre-mix     |
| ) | when an ingredient other than water is added to the pre-mix;       |
|   |                                                                    |
|   | *NOTE:* A Nutrition Facts table is required when only water is     |
|   | added to a pre-mix or when a product is only baked, cooked, etc.   |
|   | on the premises without the addition of other ingredients.         |
+---+--------------------------------------------------------------------+
| g | foods sold only at a roadside stand, craft show, flea market,      |
| \ | fair, farmers\' market and sugar bush by the individual who        |
| ) | prepared and processed the product;                                |
+---+--------------------------------------------------------------------+
| h | individual servings of foods that are sold for immediate           |
| \ | consumption (e.g., sandwiches or ready-made salads), when these    |
| ) | have not been subjected to a process or special packaging, such as |
|   | modified atmosphere packaging, to extend their durable life;       |
+---+--------------------------------------------------------------------+
| i | foods sold only in the retail establishment where the product is   |
| \ | packaged, if the product is labeled by means of a sticker and has  |
| ) | an Available Display Surface less than 200 cm^2^;                  |
+---+--------------------------------------------------------------------+
| j | prepackaged confections, commonly known as one-bite confections,   |
| \ | that are sold individually (e.g., small individually wrapped       |
| ) | candies, mints, etc.);                                             |
+---+--------------------------------------------------------------------+
| k | prepackaged individual portions of food that are solely intended   |
| \ | to be served by a restaurant or other commercial enterprise with   |
| ) | meals or snacks (e.g., crackers, creamers, etc.); and              |
+---+--------------------------------------------------------------------+
| l | a variety of cow and goat milk products sold in refillable glass   |
| \ | containers.                                                        |
| ) |                                                                    |
+---+--------------------------------------------------------------------+

Losing the Exemption

*(Excerpt from the 2003 Guide to Food Labeling and Advertising, Section
5.3.1)*

The last three items listed above (a one-bite confection, an individual
portion served with meals, milk in glass containers) never lose their
exemption. The remaining items listed above lose their exempt status and
are required to carry a Nutrition Facts table when:

-   a vitamin or mineral nutrient is added to the product;

-   a vitamin or mineral nutrient is declared as a component of an
    ingredient (other than flour);

-   aspartame, sucralose, or acesulfame-potassium is added to the
    product;

-   the product is ground meat, ground meat by-product, ground poultry
    meat or ground poultry meat by-product; or

-   the label or advertisement contains one or more of the following:

-   a nutritional reference or nutrient content claim,

-   a biological role claim,

-   a health claim,

-   a health-related name, statement, logo, symbol, seal of approval or
    other proprietary mark of a third party, or

-   the phrase \"nutrition facts\", \"valeur nutritive\" or \"valeurs
    nutritives\".

### Tariffs and Tariff Rate Quotas (TRQs)

Effective January 1, 1998 the tariff provisions of the U.S.- Canada Free
Trade Agreement (FTA) removed all tariffs between the two countries with
the exception of those products for which Canada implemented tariff rate
quotas on January 1, 1995. The provisions of the FTA were incorporated
into the NAFTA to which Mexico is also a signatory. The NAFTA came into
effect on January 1, 1994.

In 1995, under the World Trade Organization (WTO) agreement, Canada
replaced import quotas on certain agricultural products with Tariff Rate
Quotas (TRQs). Under the TRQ system, imports that are within quotas are
subject to low or free rates of duty, until the quota limit has been
reached. Once quota limits have been reached, over‑quota imports are
subject to significantly higher Most‑Favored‑Nation (MFN) rates of duty.
The Canadian importer must be in possession of an import permit to
import TRQ commodities.

The Department of Foreign Affairs and International Trade (Export and
Import Controls Bureau) is responsible for administering Canada's Tariff
Rate Quotas for Agricultural Products. For more information go to:
[http://www.dfait-maeci.gc.ca/trade/eicb/agric/agric-en.asp]{.underline}

Canada administers TRQs that affect exporters of the following U.S.
agricultural commodities:

-   Milk & Dairy Products

-   Cheese

-   Turkey

-   Chicken

-   Broiler Hatching Eggs & Chicks

-   Eggs and Egg Products

-   Margarine

**Important Note for U.S. meat exporters**: Canada has further TRQs that
affect both the level and the tariff rates of imports from non-NAFTA
origin of pork, beef, and wheat, barley and their products, but they do
not apply to imports of U.S. origin (or Mexican origin when eligible).
Canada did impose some import restrictions on U.S. meat and meat
products following the December 2003 detection of bovine spongiform
encephalopathy (BSE) in Washington State. For more information, see the
subsection Beef Export Verification.

[]{.mark}

### Packaging and Container Regulations

Canadian regulations governing package sizes for fruits and vegetables,
processed horticultural products and processed meats stipulate
standardized package sizes that can differ from U.S. sizes. The
standards of identity and the container sizes are generally stipulated
in the regulations encompassing agriculture and food products.
Electronic access to all Canadian food-related regulations is available
through:
[http://www.inspection.gc.ca/english/reg/rege.shtml]{.underline}

###  Food Additive Regulations

Canada's Food and Drugs Act and Regulations strictly control the use of
food additives. Most foods approved for sale in the U.S. would comply
with Canadian additive regulations, but differences can occur in the
permissible levels and uses of food colorings and food preservatives.
The food additive tables in Division 16 of the Regulations prescribe
which additives may be used in foods sold in Canada, to which foods they
may be added, for what purposes, and at what levels. Products containing
non‑permitted food additives may be refused entry into Canada. Canada's
Food and Drugs Regulations are available on the Internet at:

[http://www.hc-sc.gc.ca/fn-an/legislation/acts-lois/fdr-rad/index_e.html]{.underline}

## 

Specific technical questions relating to Canada's Food and Drugs
Regulations may be directed to:

### 

Regulatory Assistant\
Bureau of Food Regulatory, International & Interagency Affairs\
Food Directorate\
Health Canada\
Building No. 7, Tunney\'s Pasture (PL 0702C1)\
Ottawa, ON K1A 0L2\
Telephone: (613) 957-0360\
Fax: (613) 941-3537\
Email:
[foodregulatoryprogram_reglementationaliments@hc-sc.gc.ca](mailto:foodregulatoryprogram_reglementationaliments@hc-sc.gc.ca@hc-sc.gc.ca)

### Pesticide and other Contaminants

### 

Some agricultural chemicals approved for use in the United States are
not registered in Canada. As a result, these pesticides are deemed to
have a zero tolerance in Canada and imported foods which contain
unregistered pesticide residues above 0.1 parts per million are deemed
to be adulterated under Section B.15.002(1) of Canada\'s Food and Drug
Regulations. The goods are subject to detention, destruction, or return.
Canada is currently reviewing its policy of the 0.1 ppm default level. A
discussion document that outlines Canada's options and proposals for the
revocation of the 0.1 ppm maximum residue limit is available at:
[http://www.pmra-arla.gc.ca/english/pdf/dis/dis2003-01-e.pdf]{.underline}

Health Canada's Health Protection Branch sets maximum reside limits
(MRL) for pesticides. A full listing of Canadian MRLs is available on
the Pest Management Regulatory Agency's (PMRA) website at:
<http://www.pmra-arla.gc.ca/english/aboutpmra/about-e.html>

The PMRA is also responsible for pesticide registration. The address is:

Pest Management Regulatory Agency

Health Canada

2250 Riverside Drive

Ottawa, Ontario K1A 0K9

Telephone: 613-736-3799

## Other Regulations and Requirements

### Inspection and Registration Fees

As part of a Canadian government initiative to partially recover costs
associated with providing inspection services, most federal departments
charge fees to industry for inspection and product registrations. Canada
claims its fee structure is consistent with WTO provisions for national
treatment, in that the fees apply equally to Canadian and import sales.

### Beef Export Verification 

Following the identification of a BSE-infected animal in Washington
State, on December 23, 2003, the Canadian government introduced certain
import restrictions on U.S. beef and live cattle. On several occasions
beginning January 22, 2004, again on April 23, 2004, and in June 2006,
the restrictions were partially eased but some special entry
requirements remain in effect. An Agricultural Marketing Service (AMS)
Export Verification (EV) program is no longer required for export of
beef and beef products to Canada, but it is required for bison or
buffalo meat. Since U.S. BSE regulations do not apply to bison or
buffalo, meat and meat products derived from these species must be
produced under an approved AMS EV program. The red meat export
requirements for shipments to Canada are detailed in the Food Safety
Inspection Service (FSIS), see [FSIS Library of Export
Requirements](http://www.fsis.usda.gov/OFO/export/explib.htm). For more
information on the Export Verification Program for Bison or Buffalo to
Canada, go to: <http://www.ams.usda.gov/lsg/arc/bev.htm>.

### 

All federally inspected U.S. meat and poultry plants are recognized
initially as eligible to export to Canada. U.S. exporters should be
aware that establishments not listed in the current FSIS Meat and
Poultry Inspection Directory may experience delays in getting their
certificates pre-verified. Contact the FSIS Technical Service Center,
Omaha, NE, phone (402) 221-7400 for assistance.

### 

### Container Sizes: Processed Meats

Canada's Meat & Poultry Inspection Regulations stipulate the standard
package size requirements for processed meat and poultry products such
as bacon, sausages, sliced meats and wieners. Common U.S. package sizes
for these products are different from Canadian standardized sizes. For
example, sliced bacon cannot be sold in a 1 lb. package in Canada. It is
mostly sold in 500 g packages, one of the standardized sizes in the
regulations. Schedule II of the Meat and Poultry Inspection Regulations
lists all the acceptable package sizes for processed meats. It can be
viewed on the Department of Justice website at:

<http://laws.justice.gc.ca./en/M-3.2/SOR-90-288/index.html>

### Requirements for Fresh Fruits and Vegetables

All fruits and vegetables imported into Canada must meet specific
standards and packaging regulations laid out in the Canada Agricultural
Products Act's Fresh Fruit and Vegetable Regulations and Processed
Product Regulations. The regulations are available on the Internet at:
<http://laws.justice.gc.ca/en/C-0.4/C.R.C.-c.285/index.html>

U.S. fresh fruits and vegetable exporters must:

-   comply with Canadian grade standards and packaging regulations,

-   obtain Canadian Confirmation of Sale form. Consignment selling is
    prohibited,

-   obtain special waiver of standard container regulations for bulk
    products,

-   file a Canada Customs invoice.

Beginning in 1995, Canada dropped the mandatory requirement (except for
apples, onions, and potatoes) that U.S. exports of fresh produce be
accompanied by USDA Agricultural Marketing Service (AMS) certification
that the produce meets Canadian import requirements. Some U.S. exporters
still choose to obtain AMS certification as evidence that the produce
left the shipping point in grade and condition.

Canada requires all foreign shippers of fresh produce to place a grade
on consumer size packages for which Canadian grades are established. The
law also requires a country of origin declaration with the grade and
weight (in metric) printed in a letter size directly proportional to the
size of the package display surface.

Consignment selling of fruits and vegetables into Canada is prohibited
by law and a confirmation of sale form is required for entry. Canada
Customs will release only produce that is pre-sold at the border.

Where grades and standard container sizes are established in Canadian
regulation, bulk imports require a special exemption from the Canadian
Food Inspection Agency. This exemption is not granted unless there is a
shortage of domestic supply.

Further information on fruit and vegetable regulations is available
from:

Dairy, Fruit, and Vegetable Division

Canadian Food Inspection Agency

59 Camelot Drive

Nepean, Ontario, Canada K1A 0Y9

Telephone: (613) 225‑2342

[]{.mark}

### Processed Horticultural Products

Imported processed horticultural products are subject to the
requirements of Canada's Processed Products Regulations. These
regulations stipulate the standards and grades for processed fruits and
vegetables. The maximum container size permitted for importation is 20
kg or 20 liters. Beyond these sizes, Canadian rules require a
ministerial exemption, or bulk waiver of standardized package. The
Processed Product Regulations are available for viewing at the following
Justice Department website:

<http://laws.justice.gc.ca/en/C-0.4/C.R.C.-c.291/index.html>

## Other Specific Standards 

### Fish and Seafood

Fish and fish products are subject to the Fish Inspection Act and
Regulations, which contain requirements for wholesomeness, labeling,
packaging, grading, and health and safety.

There is no requirement under those regulations for imported fish
products to be accompanied by a health certificate. However, the person
who imports fish into Canada must hold a fish import license, must
provide written notification to the CFIA for each imported shipment of
fish and must make the fish available for inspection. Product
inspections are conducted at frequencies that depend on the product\'s
risk and the exporter\'s history of compliance. The normal inspection
frequency for fresh fish such as wild caught salmon from an exporter
with a good history of compliance would be 2%. More information
regarding the requirements to import fish into Canada can be found on
the CFIA web site in the document titled Guide to Canadian Regulatory
Requirements and Examination Procedures for Imported Fish.
[http://www.inspection.gc.ca/english/anima/fispoi/import/importe.shtml]{.underline}

Labeling requirements for packaged fish must include all mandatory
information normally found on consumer packages such as:

-   country of origin

-   common name of the fish;

-   name and address of the manufacturer;

-   day, month and year of processing; and

-   quantity (metric or imperial units)

Information regarding the labeling of fish products is available on the
CFIA web site at:

[http://www.inspection.gc.ca/english/fssa/labeti/guide/tab15e.shtml]{.underline}

### Novel Foods (Genetically Modified Foods) 

Health Canada defines novel foods as: products that have never been used
as a food; foods that result from a process that has not previously been
used for food; or, foods that have been modified by genetic manipulation
(i.e., genetically modified foods).

Pre-Market Notification: The Novel Foods Regulation (under the Food and
Drugs Act) requires that pre-market notification be made to Health
Products and Food Branch (HPFB) by any company who wants to sell a
biotechnology‑derived food.

The following is Health Canada's website for information concerning the
sale of genetically modified foods in Canada:

<http://www.hc-sc.gc.ca/food-aliment/mh-dm/ofb-bba/nfi-ani/e_novel_foods_and_ingredient.html>

Contact for Novel Food Pre‑Market Notification/Submission

Novel Food Notification

Food Program

Food Directorate

Health Canada

4th Floor West

Sir Frederick G. Banting Research Center

Tunney\'s Pasture, PL 2204A1

Ottawa, Ontario K1A 0L2

[]{.mark}

### Wine, Beer and Other Alcoholic Beverages

The federal Importation of Intoxicating Liquors Act gives the provinces
and territories full control over the importation of intoxicating liquor
into their jurisdictions. Provincial liquor commissions control the sale
of alcoholic beverages in Canada and the market structure can vary
considerably from province to province. Alcoholic beverages can only be
imported through the liquor commissions in the province where the
product will be consumed. In general terms, U.S. exporters are required
to have their products "listed" by the provincial liquor control agency.
In many provinces, U.S. exporters must have a registered agent who
provides the necessary marketing support within the province to obtain a
provincial liquor board listing. As an initial step, U.S. exporters
should contact the provincial liquor board in the target market for a
listing of registered agents or consult the Office of Agricultural
Affairs upcoming wine report (expected to be available on the FAS
website under Attaché Reports in late November of early December 2006)
for a partial listing of agents.

-   Newfoundland Liquor Corporation -
    [http://www.nfliquor.com](http://active.inspection.gc.ca/tech/extsite.asp?url=http://www.nfliquor.com)

-   Nova Scotia Liquor Corporation -
    [http://www.nsliquor.ns.ca](http://active.inspection.gc.ca/tech/extsite.asp?url=http://www.nsliquor.ns.ca)

-   Prince Edward Island Liquor Control Commission -
    [http://www.peilcc.ca/](http://active.inspection.gc.ca/tech/extsite.asp?url=http://www.peilcc.ca/)

-   New Brunswick Liquor Corporation -
    [http://www.nbliquor.com](http://active.inspection.gc.ca/tech/extsite.asp?url=http://www.nbliquor.com)

-   Société des alcools du Québec -
    [http://www.saq.com](http://active.inspection.gc.ca/tech/extsite.asp?url=http://www.saq.com)

-   Liquor Control Board of Ontario -
    [http://www.lcbo.com](http://active.inspection.gc.ca/tech/extsite.asp?url=http://www.lcbo.com)

-   Manitoba Liquor Control Commission -
    [http://www.mlcc.mb.ca](http://active.inspection.gc.ca/tech/extsite.asp?url=http://www.mlcc.mb.ca)

-   Saskatchewan Liquor and Gaming Authority -
    [http://www.slga.gov.sk.ca](http://active.inspection.gc.ca/tech/extsite.asp?url=http://www.slga.gov.sk.ca)

-   Alberta Gaming and Liquor Commission -
    [http://www.aglc.gov.ab.ca](http://active.inspection.gc.ca/tech/extsite.asp?url=http://www.aglc.gov.ab.ca)

-   British Columbia Liquor Distribution Branch -
    [http://www.bcliquorstores.com/en](http://active.inspection.gc.ca/tech/extsite.asp?url=http://www.bcliquorstores.com/en)

-   Yukon Liquor Corporation Board -
    [http://www.ylc.yk.ca](http://active.inspection.gc.ca/tech/extsite.asp?url=http://www.ylc.yk.ca)

-   North West Territories Liquor Commission - Tel.: (867) 874-2100

Canadian packaging and labeling requirements for wine and beer are
administered under Canada's Food and Drug Regulations and the Consumer
Packaging and Labeling Regulations. In addition to the general packaging
and labeling requirements for most foods, the regulations for alcoholic
beverages cover common names and standardized container rules. For
example, light beer in Canada is defined by regulation as beer with a
percentage alcohol of 2.6 to 4.0, by volume. Container sizes for wine
are standardized and metric. The most common containers for wine are 750
milliliters or 1, 1.5 and 2 liters. The province of Quebec has
additional requirements to alcoholic beverage labeling.

### Organic Foods

The import and sale of organic food products in Canada are governed by
the same rules and regulations that apply to non-organic food products.
No distinction is made between organic and non-organic foods with regard
to import requirements. Currently, all Canadian packaging and labeling,
grade, and inspection regulations apply equally to organic and
non-organic foods.

The Canadian Food Inspection Agency (CFIA) has published a regulatory
proposal to establish national regulations for organic food. The
regulatory proposal governing the certification of organic foods and on
the use of a federal organic logo was published in the Canada Gazette
--Part I on September 2, 2006 and includes a 75-day public comment
(until mid-November, 2006). The proposal would establish a Canadian
Organic Regime whereby the GOC would assume oversight with the CFIA
acting as the competent authority while permitting the existing Canadian
certification bodies and accreditation bodies to continue to deliver
organic certification and accreditation services. The use of the organic
product legend (i.e., logo) would be restricted to products that meet
the prescribed requirements for organic food. Under Canada's proposed
organic regulations, all importers who market a product identified as
organic will be required to obtain an attestation issued by the
competent authority of the country of origin, attesting that the product
is considered to be organic in that country. For U.S. product, the
National Organic Program became effective April 21, 2001 and was fully
implemented on October 21, 2002. Since a large proportion of consumer
oriented organic products on Canadian retail shelves are already of U.S.
origin, it is expected that virtually all products meeting the U.S.
National Organic Program Standard will meet the Canadian requirements.

#### Certification

Certification of products described as organic is voluntary in all
provinces except Quebec. The province of Quebec has an organic
regulation which requires certification by a certifying body accredited
by the Conseil d\'accréditation du Québec (CAQ). For further
information, consult the [CAQ Web site:](http://www.caqbio.org/)
[http://www.caaq.org]{.underline}

Independent certification bodies are responsible for monitoring the
growers they certify, and for taking action to remove organic claims if
the standard is not being met.

Copies of the National Standard for Organic Agriculture are available on
the [Canadian General Standards Board ([CGSB]{.underline}) Web
site](http://www.pwgsc.gc.ca/cgsb/):
[http://www.pwgsc.gc.ca/cgsb]{.underline}

### Kosher Foods

In the labeling, packaging and advertising of a food, Canada's Food and
Drug Regulations prohibit the use of the word kosher, or any letter of
the Hebrew alphabet, or any other word, expression, depiction, sign,
symbol, mark, device or other representation that indicates or that is
likely to create an impression that the food is kosher, if the food does
not meet the requirements of the Kashruth applicable to it. Kosher style
foods are defined in Canada's Guide to Food Labeling and Advertising
(mentioned above). For more information on Kosher Food Marketing in
Canada, see FAS Ottawa's latest Kosher Report CA5061 available under
"Attaché Reports" from the FAS homepage at:
[http://www.fas.usda/gov]{.underline}

### Pet Food

#### Labeling

The labeling and advertising of pet food sold in Canada is governed by
the Consumer Packaging and Labeling Act and by the Competition Act as
administered by Industry Canada. This oversees that pet food labels and
advertising are truthful and verifiable. The manufacture and sale of pet
food, however, is not regulated in Canada by the CFIA nor by any other
governmental department. There are voluntary quality assurance programs
in place which deal with the quality, safety and nutritional value of
pet food for pets. The Canadian Veterinary Medical Association (CVMA)
operates a voluntary pet food certification program for pet food
manufacturers that sets basic quality standards. Manufacturers can
voluntarily submit their pet foods for testing based on the CVMA
nutritional and digestibility standards. For more information, go to:
[http://canadianveterinarians.net](http://canadianveterinarians.net/)

#### Animal Health Requirements related to Pet Food

The Canadian Food Inspection Agency issued the following directive in
2006 regarding imports of pet foods and chews that include products of
ruminant origin.

Commercially prepared Pet Food (including pet treats):

1**.** Cooked canned commercially prepared pet food containing animal
by-products (bone meal, meat meal, blood meal, rendered animal fats,
gluestock, meat, inedible meat).

From the United States: Proof of origin acceptable to the CBSA, a copy
of the list of ingredients, and a written declaration from the importer
(dated, signed, and linked to the shipment being imported) stating that
(1) there are no ingredients derived from bovine animals in the pet
food, or (2) the bovine ingredients in the pet food are not derived from
Specified Risk Material (SRM), or (3) the bovine animals from which the
pet food ingredients are derived originated from the U.S. or Canada or a
country considered to be of negligible BSE-risk by the CFIA (Argentina,
Australia, Brazil, Chile, New Zealand or Uruguay).

2\. For pet food containing ingredients of ruminant (bovine, ovine or
caprine) origin, the designated country must be free of foot-and mouth
disease (FMD) and of negligible risk (category 1) for bovine spongiform
encephalopathy (BSE). *Dried pet chews such as cattle ears, bull pizzles
and cow hooves must come from countries free from foot-and-mouth disease
only (BSE is not a disease of concern for these last products). For
finished rawhide pet chews, there are no diseases of concern.*

Rawhide Pet Chews: From the United States**:** Proof of origin
acceptable to the Canadian Border Services Agency, and a written
declaration from the importer (dated, signed, and linked to the shipment
being imported) stating that the finished product does not contain any
hides or skins from the head of a ruminant.

If the pet food contains ingredients of porcine origin, designated
country must be free of foot-and-mouth disease, swine vesicular disease,
African swine fever, and classical swine fever (hog cholera).

If the pet food contains ingredients of avian origin, the designated
country must be free from Velogenic Newcastle disease and pathogenic
avian influenza (fowl plague).

### 

### Livestock Feeds

Using the authority of the federal Feeds Act, the Canadian Food
Inspection Agency administers a national livestock feed program to
regulate domestic and imported livestock feeds. The program is delivered
by means of pre-sale product evaluation and registration by staff of the
Feed Section, and post-market inspection and monitoring by Agency field
staff located in all provinces of Canada. As a initial step, U.S.
livestock feed exporters must apply to have the feed registered in
Canada. They must also retain an agent who is resident in Canada and has
the legal authority to act on their behalf. For more information on how
to meet requirements for livestock feeds in Canada and the on-line forms
for product registration and resident agent, go to:

<http://www.inspection.gc.ca/english/anima/feebet/feebete.shtml>

### Diet-Related Health Claims

The 2002 amendments to the *Food and Drug Regulations* allow
diet-related health claims on foods for the first time in Canada. These
claims are based on sound scientific evidence that has established a
relationship between certain elements of healthy diets and reduction of
risk of certain diseases. A diet-related health claim is a statement
that describes the characteristics of a diet that may reduce the risk of
developing a diet-related disease or condition, such as osteoporosis or
stroke, and the properties of a food that make it a suitable part of the
diet.

For example, the label of or an advertisement for a food which is low in
sodium might carry the following diet-related health claim (providing
specific composition and labeling conditions are met): \"A healthy diet
containing foods high in potassium and low in sodium may reduce the risk
of high blood pressure, a risk factor for stroke and heart disease.
(Naming the food) is low in sodium.\"

The Regulations provide for claims that deal with the following
relationships:

-   a diet low in sodium and high in potassium, and the reduction of
    risk of hypertension;

-   a diet adequate in calcium and vitamin D, and the reduction of risk
    of osteoporosis;

-   a diet low in saturated fat and *trans* fat, and the reduction of
    risk of heart disease;

-   a diet rich in vegetables and fruits, and the reduction of risk of
    some types of cancer; and

-   minimal fermentable carbohydrates in gum, hard candy or
    breath-freshening products, and the reduction of risk of dental
    caries.

### Sample Products

Food samples for research, evaluation, or display at trade shows and
food exhibitions are permitted entry, but may not be offered for
commercial sale. For meat, poultry, dairy or egg, and fruits and
vegetable samples it is recommended that exhibitors apply for an import
permit and declare that the food is not for resale. Contact: CFIA Permit
Office,\
59 Camelot Drive, Nepean, Ontario, K1A 0Y9, Fax: (613) 228-6605. Entry
at the border will be facilitated if U.S. exporters show proof of their
food exhibition participation and that the products are of U.S. origin.
Up to 10 samples are permitted entry, but the weight of each may not
exceed 100 kilograms (about 220 pounds). Entries for personal
consumption are generally restricted to 20 kg.

### Test Marketing: Processed Food Products

Canada\'s Processed Product Regulations permit, in special instances
only, the test marketing of domestically manufactured or imported
processed food products that may not meet packaging, labeling, or
compositional requirements of the regulations. However, the provision is
designed to facilitate the marketing of new products of a type that are
new, unique and unavailable in Canada. U.S. companies should note that
it does not apply to U.S. brand introductions into Canada for processed
foods of a type already available on retail shelves. In the case of
imported foods, applications for test marketing must be submitted to the
Canadian Food Inspection Agency by the Canadian importer who may be
granted authorization to test market a food product for a period of up
to 12 months.

A dealer wishing to conduct a test market must, six weeks prior to
conducting the test market, file a Notice of Intention to Test Market in
the prescribed form and manner. The Notice of Intention to Test Market
should be completed on company letterhead and should include the
following:

a\) A description of the prepackaged product, together with submission
of a sample in prepackaged form or alternatively, an illustration of the
prepackaged product and the label;

b\) The quantity to be distributed;

c\) The period of time for test marketing (maximum period is 12 months);
and

d\) The geographic area or region in which the test market is to be
conducted.

e\) Dealers must also include information, with supporting data, to
substantiate that the test market product was not previously sold in
Canada in that form and to establish that it differs substantially from
any other product sold in Canada with respect to its composition,
function, state or packaging form.

The Notice of Intention to Test Market should be addressed to:

Director, Bureau of Food Safety and Consumer Protection\
Canadian Food Inspection Agency\
159 Cleopatra Drive\
Nepean, Ontario, K1A 0Y9

### Temporary Marketing Authorization Letter (TMAL)

There is a distinction between a Test Market Food and a food which has
received Temporary Marketing Authorization**.**

A Temporary Marketing Authorization Letter (TMAL), issued by the
Assistant Deputy Minister of the Health Products and Food Branch, Health
Canada, authorizes the sale of a food that does not meet one or more of
the compositional, packaging, labeling or advertising requirements under
the *Food and Drugs Act and Regulations*. The authorization is granted
for a specified period of time, within a designated area and in a
specified quantity for a specific manufacturer or distributor. A TMAL
does not exempt foods from the requirements under the *Consumer
Packaging and Labeling Act and Regulations*.

The purpose of a Temporary Marketing Authorization is to generate
information in support of a proposed amendment to the *Food and Drug
Regulations*.

For example, as a condition for obtaining a TMAL for the use of
non-permitted labeling on a food, the companies involved agree:

-   to use only those non-permitted labeling statements approved by the
    Health Products and Food Branch,

-   to use these to carry out studies to determine consumer attitudes to
    the labeling and advertising material, and

-   to submit the results of these studies to the Health Products and
    Food Branch.

Once the TMAL is issued, those manufacturers or producers of foods that
are subject to mandatory label registration through the CFIA (such as
registered meats and processed products) will be expected to follow
normal procedures to register their labels.

Applications for a Temporary Marketing Authorization Letter should be
addressed to:

Assistant Deputy Minister\
Health Products and Food Branch\
Health Canada\
Ottawa, Ontario K1A 0L2

### Copyright and/or Trademark Laws

The federal agency responsible for registering trademarks in Canada is
the Trademarks Office, part of a larger agency called the Intellectual
Property Office, which is part of Industry Canada.

Registered trademarks are entered on the Trademark Register and can
provide U.S. companies direct evidence of ownership. Trademark
registrations are valid for 15 years in Canada.

To register a trademark, an application (with fee) must be sent to the
Trademarks Office. In most instances, a trademark must be used in Canada
before it can be registered. The Trademarks Office advises that
companies hire a registered trademark agent to search existing trade
names and trademarks. It will provide a list of registered agents upon
request. For further information on making an application for a
trademark in Canada, contact:

The Trade-Marks Branch

Canadian Intellectual Property Office

Industry Canada

50 Victoria Street

Place du Portage, Phase 1

Hull, Quebec K1A 0C9

Telephone: (613) 997-1936

For more information about trademarks see Industry Canada's website at:
[http://strategis.ic.gc.ca](http://strategis.ic.gc.ca/)

# 

# SECTION III. MARKET SECTOR STRUCTURE AND TRENDS

Besides the market opportunities created by reduced tariffs, changing
lifestyles in Canada are helping increase the demand for U.S.
agricultural products.

U.S. food exporters face a knowledgeable and more demanding consumer. To
be successful in the Canadian marketplace U.S. exporters should study
and understand Canadian food trends. Agriculture & Agri-food Canada has
identified the following as some current factors driving consumer food
spending trends:

-   Variety: Strong demand for new and innovative foods on store shelves
    and on restaurant menus. Growing popularity of imported exotic
    fruits and vegetables, ethnic foods and restaurant concepts.

-   Quality and freshness: Consumers are willing to pay more for
    quality. For many consumers, freshness means quality. Many
    private-label products offer exceptional quality for the price
    (value).

-   Convenience: Time pressures of dual-earner and lone-parent families
    increases demand for convenience foods (prepared meals, microwave
    foods, sauces and condiments, fresh chilled prepared foods, \"home
    meal replacements\") and for foodservice (i.e. take-out foods).

-   Health and nutrition: Health-conscious Canadians, especially ageing
    baby boomers, are eating more fruits, vegetables and \"light\" foods
    (low fat, cholesterol, sodium, etc). Current reviews of nutrition
    labeling may address heightened demand for more information about
    nutritional content of foods. Functional foods and nutraceuticals
    may offer future opportunities.

-   Environmental concerns: Especially among the youth market,
    environmental concerns may have implications for food demand
    (processing, bulk packaging, organic foods, and avoidance of certain
    food product categories (i.e., meat).

-   Safety of the food supply: Heightened media attention to such issues
    as mad cow disease, product recalls, food irradiation, GMOs, etc.

-   Access to information: Consumers more connected, aware and
    demanding.

Immigration patterns have changed the face of Canadian cities, where 75
percent of Canada's population resides. Immigration in the 1990s was
dominated by newcomers of Asian origin, who now account for about 10
percent of the population of Canada's two largest cities, Toronto and
Vancouver. The combination of the influx of Asian, as well as other
ethnic origin immigrants with contrasting dietary traditions, and the
trend among consumers for a healthier diet has transformed the Canadian
food supply. Compared to twenty years ago, Canadians are consuming less
sugar, animal fats (including butter and lard), red meat, eggs, canned
vegetables, skim milk powder, and alcoholic beverages and more rice,
breakfast cereals, nuts, vegetable-based fats, chicken, fish, fresh
vegetables, cheese, yogurt, coffee, and soft drinks.

The following is a listing of the Market Sector Structure and Trend
Reports prepared recently by, or for the Office of Agricultural
Affairs., Ottawa. The reports offer profiles of each sector and
summarize the key developments and market opportunities for new U.S.
sales.

## Market Sector Reports

Listed below are the food sector and marketing reports submitted by the
Office of Agricultural Affairs, Ottawa, Canada. For a complete listing
of other Post reports and of FAS' worldwide agricultural reporting ,
visit the FAS home page at [http://www.fas.usda.gov]{.underline} and
click on "Attaché Reports". Insert the Report number in the table below
into the appropriate field to access the desired report.

+---------+-------------------------------------------------+----------+
| **AGR   | # Title of Report                               | # Date   |
| RE      |                                                 |          |
| PORT#** |                                                 |          |
+---------+-------------------------------------------------+----------+
| CA0174  | Pet Food Industry Product Brief                 | 11/06/00 |
+---------+-------------------------------------------------+----------+
| CA1126  | Exploring Canada's Food Manufacturing Industry  | 09/18/01 |
+---------+-------------------------------------------------+----------+
| CA2001  | Organic Food Industry Report                    | 01/04/02 |
+---------+-------------------------------------------------+----------+
| CA2002  | Convenience & Non-Traditional Grocery Outlets   | 01/04/02 |
|         | Report                                          |          |
+---------+-------------------------------------------------+----------+
| CA2021  | Quebec as a Market for U.S. Wines               | 02/05/02 |
+---------+-------------------------------------------------+----------+
| CA2026  | Controversial Quebec Plan for Wine Marketing    | 03/15/02 |
+---------+-------------------------------------------------+----------+
| CA2037  | Quebec Beer Industry Overview                   | 04/15/02 |
+---------+-------------------------------------------------+----------+
| CA2075  | An Overview of the Institutional Foodservice    | 07/10/02 |
|         | Market in Canada                                |          |
+---------+-------------------------------------------------+----------+
| CA2078  | Canadian Seafood Industry                       | 07/10/02 |
+---------+-------------------------------------------------+----------+
| CA2100  | Exporting U.S. Wine to Ontario                  | 08/20/02 |
+---------+-------------------------------------------------+----------+
| CA2115  | Vending Machine Food Distribution in Canada     | 10/24/02 |
+---------+-------------------------------------------------+----------+
| CA2124  | Asian-Style Foods in the Canadian Market        | 10/23/02 |
+---------+-------------------------------------------------+----------+
| CA2125  | An Overview of Selected Segments of the         | 10/24/02 |
|         | Canadian Frozen Food Industry                   |          |
+---------+-------------------------------------------------+----------+
| CA2132  | Marketing In Canada Handbook                    | 11/18/02 |
+---------+-------------------------------------------------+----------+
| CA3001  | Canada Introduces Mandatory Nutrition Labeling  | 01/03/03 |
+---------+-------------------------------------------------+----------+
| CA3006  | Snack Food Market In Canada                     | 01/24/03 |
+---------+-------------------------------------------------+----------+
| CA3041  | Food & Beverage Shows                           | 07/14/03 |
+---------+-------------------------------------------------+----------+
| CA3075  | Packaging & Retailing Trends in Fresh Produce   | 11/20/03 |
+---------+-------------------------------------------------+----------+
| CA4068  | Exporter Guide                                  | 09/30/04 |
+---------+-------------------------------------------------+----------+
| CA5061  | Kosher Report                                   | 09/26/05 |
+---------+-------------------------------------------------+----------+
| CA5068  | Food Brokers Report                             | 10/06/05 |
+---------+-------------------------------------------------+----------+
| CA5080  | Retail Sector Report                            | 11/23/05 |
+---------+-------------------------------------------------+----------+
| CA6006  | HRI Food Service Sector Report                  | 02/14/06 |
+---------+-------------------------------------------------+----------+
| CA6019  | Private Label Report                            | 04/28/06 |
+---------+-------------------------------------------------+----------+
| CA6040  | Canada Connect Matchmaker Program               | 09/09/05 |
+---------+-------------------------------------------------+----------+
| CA6045  | Export Certificate Report                       | 09/29/06 |
+---------+-------------------------------------------------+----------+

# 

# 

# SECTION IV. BEST HIGH-VALUE PRODUCT PROSPECTS

Canada\'s wholesale, retail, and food service industries watch with
acute interest developments in packaged and processed foods and food
service trends in the United States. While there are differences in the
consumption patterns of selected food items in the two countries, there
is a growing demand in Canada for new value-added foods that are
market-proven in the United States.

During 2005, a number of consumer-oriented agricultural product
categories posted record sales to Canada. The top five categories are
fresh vegetables (\$1.2 billion), fresh fruit (\$1.0 billion), snack
foods (\$906 million), processed fruits and vegetables (\$664 million)
and, breakfast cereals (\$418 million). Combined, items in these
categories accounted for more than half of total U.S. exports
consumer-oriented agricultural product to Canada.

## What's Hot?

What's hot in the Canadian retail grocery market? What are some of the
trends in retail grocery sales that U.S. exporters can capitalize on?
The following table, based on ACNeilsen Canada data for Agriculture and
Agri-Food Canada, lists the top market increases in the 2003 survey of
retail grocery sales.

### What Products are Hot

The Atkin\'s Diet appears to be losing popularity as baking ingredients,
bread products and specialty juices made significant gains in 2005 over
the previous year. Convenience is again one of the new buzzwords for
2005. According to the \'What\'s Hot in 2005\' list, frozen foods such
as fruits, yogurts and puff pastry have increased dramatically in
popularity with consumers
([Table 3](http://www.agr.gc.ca/misb/fb-ba/index_e.php?s1=cons&&page=food-aliment#table3)).
Drinks are also gaining in popularity with chilled orange drinks and
whole bean coffee included in the top 10. Based on growth rates from the
previous year, the most dynamic gains in 2005 were: chilled orange
drinks (+200%), frozen fruit (+37%), whole bean coffee (+35%), frozen
remaining food (excluding total frozen dinners and entrees including
egg/spring rolls, frozen meat pies, and frozen and refrigerated pizza
and French bread and sub and frozen pizza snacks) (+30%). Demand for
healthier products is also increasing with bottled water (+23%); other
chilled fruit juices/drinks (excluding apple, grapefruit, orange juices
and orange drinks) (+23%); value added broad leaf produce (+21%); grain
bread (+21%); frozen yogurt (+20%); rice drinks (18%), refrigerated
bagged salads (12%); and olive oil (11%) seeing significant gains. While
these niche categories are not large in terms of retail dollar sales,
they showed substantial growth over 2005.

  -----------------------------------------------------------------------
  **Table 3: What\'s Products are Hot in 2005**         
  ----------------------------------------------------- -----------------
  **Product**                                           **% Change\
                                                        2005 vs. 2004**

  *Source: ACNielsen*                                   

  Chilled Orange Drinks                                 \>200

  Frozen Fruit                                          37

  Whole Bean Coffee                                     35

  Frozen Remaining Foods                                30

  Bottled Water                                         23

  Other Chilled Fruit Juices/Drinks                     23

  Value Added Broad Leaf Produce                        21

  Grain Bread                                           21

  Frozen Yogurt                                         20

  Baking Nuts                                           20

  Rice Drinks                                           18

  Frozen Puff Pastry                                    16

  Chili Con Carne                                       15

  R&G Coffee                                            13

  Vegetable Chip Dips Incl. Refrigerated                13

  Remaining Baking Mixes                                13

  Canned Peas - Remaining                               13

  Refrigerated Bagged Salads                            12

  Corned Beef                                           12

  Olive Oil                                             11

  Croutons                                              11

  Frozen & Refrigerated Pizza, French Bread & Sub       10

  Vegetable Juices                                      10

  Refrigerated Pasta                                    10
  -----------------------------------------------------------------------

# SECTION V. ROAD MAP FOR MARKET ENTRY 

## A. Entry Strategy

U.S. food product manufacturers seeking to enter the Canadian
marketplace have vast opportunities. Canada is the U.S.'s primary
trading partner -- more than 64 percent of Canada's manufactured food
imports originate from the U.S. This is a result of a number of factors,
including a convenient shipping corridor and a familiarity between
consumer tastes and expectations.

Although Canadians are always on the lookout for new and innovative U.S.
product, there are a number of obstacles U.S. exporters must overcome
before exporting to Canada. These may include currency, customs
procedures and labeling requirements.

Overcoming these obstacles is simple with the right tools. Following are
the main steps to take for U.S. exporters entering the Canadian market:

1.  Contact your state regional trade office.

2.  Research the competitive marketplace

3.  Locate a broker/distributor.

4.  Understand Canadian government standards and regulations that
    pertain to your product.

Step 1: Contact your State Regional Marketing Association

The State Regional Trade Group offices exist to help promote the export
of food and agricultural products from specific geographical regions of
the country and can in some cases provide financial assistance as well
as marketing advice. Contact the office in your area.

+--------------+-----------------------+------------------------------+
| State        | Web Site              | States                       |
| Regional     |                       |                              |
+--------------+-----------------------+------------------------------+
| Food Export  | [http://www.foodexp   | Connecticut, Delaware,       |
| USA          | ortusa.org](http://ww | Maine, Massachusetts, New    |
|              | w.foodexportusa.org/) | Hampshire, New Jersey, New   |
| Northeast    |                       | York, Pennsylvania, Rhode    |
|              |                       | Island, Vermont              |
+--------------+-----------------------+------------------------------+
| Food Export  | [www.f                | Illinois, Indiana, Iowa,     |
| Association  | oodexport.org](http:/ | Kansas, Michigan, Minnesota, |
| of the       | /www.foodexport.org/) | Missouri, Nebraska, North    |
| Midwest USA  |                       | Dakota, Ohio, South Dakota,  |
|              |                       | Wisconsin                    |
+--------------+-----------------------+------------------------------+
| Southern     | [ht                   | Alabama, Arkansas, Florida,  |
| U.S. Trade   | tp://www.susta.org](h | Georgia, Kentucky,           |
| Association  | ttp://www.susta.org/) | Louisiana, Maryland,         |
| (SUSTA)      |                       | Mississippi, North Carolina, |
|              |                       | Oklahoma, South Carolina,    |
|              |                       | Tennessee, Texas, Puerto     |
|              |                       | Rico, Virginia & West        |
|              |                       | Virginia                     |
+--------------+-----------------------+------------------------------+
| Western U.S. | [http                 | Alaska, Arizona, American    |
| Agricultural | ://www.wusata.org](ht | Samoa, California, Colorado, |
| Trade        | tp://www.wusata.org/) | Guam, Hawaii, Idaho,         |
| Association  |                       | Montana, New Mexico, Oregon, |
| (WUSATA)     |                       | Utah, Washington, Wyoming    |
+--------------+-----------------------+------------------------------+

Step 2: Research the competitive marketplace

The State Regional Offices will often have information on specific
markets that they can provide to aid in market research. Additionally,
the CANADA CONNECT Matchmaker Program provides an element to assist in
determining the acceptance of your product in Canada (See Step 3 below).
Another means of finding a broker/distributor to represent you is by
exhibiting in the US Pavilion at the Canadian Food & Beverage Show, the
largest foodservice show in Canada, held annually in Toronto each
February and/or SIAL Montreal, which is held every other year. The next
SIAL is March 2007. Information on both of these shows is available
on-line or by contacting [agottawa@fas.usda.gov.]{.underline}

Step 3: Locate A Broker/Distributor

It is recommended that most new entrants to the Canadian market secure
the services of a broker and/or distributor.

The USDA/FAS Office of Agricultural Affairs, U.S. Embassy Canada can
provide assistance in locating a broker/distributor. Services available
to help exporters locate appropriate brokers/distributors include USDA
endorsed pavilions at various Canadian trade shows and a matchmaker
program entitled, CANADA CONNECT, (see FAS Report CA5060 on the FAS Web
Site: [**www.fas.usda.gov**](http://www.fas.usda.gov/)) for details on
this program that provides market information and meetings with
potential, pre-screened, buyers.

A partial listing of Canadian food brokers are available on our report
CA5068 on the FAS web site.

Step 4: Review this Exporter Guide for Canadian government standards and
regulations that pertain to your product and contact one of the CFIA
Import Service Centers across Canada listed below for further
information. However, Canadian agents, distributors, brokers, and/or
importers are also equipped to assist exporters through the regulatory
import process.

+-----------------------+-----------------------+-----------------------+
| **Import Service      | **Operational**       | **Contact**           |
| Center**              |                       |                       |
+-----------------------+-----------------------+-----------------------+
| Eastern Import        | 7:00 a.m. to 11:00    | Telephone:            |
| Service Center        | p.m. (local time)     | 1-877-493-0468(inside |
|                       |                       | Canada/U.S.)          |
|                       |                       |                       |
|                       |                       | Facsimile:            |
|                       |                       | 1-514-493-4103        |
+-----------------------+-----------------------+-----------------------+
| Central Import        | 7:00 a.m. to 12:00    | Telephone:            |
| Service Center        | a.m. (local time)     | 1-800-835-4486(inside |
|                       |                       | Canada/U.S.)          |
|                       |                       |                       |
|                       |                       | Facsimile:            |
|                       |                       | 1-905-612-6280        |
+-----------------------+-----------------------+-----------------------+
| Western Import        | 7:00 a.m. to 12:00    | Telephone:            |
| Service Center        | a.m. (local time)     | 1-888-732-6222        |
|                       |                       | (inside Canada/US)    |
|                       |                       |                       |
|                       |                       | Facsimile:            |
|                       |                       | 1-604-270-9247        |
+-----------------------+-----------------------+-----------------------+

Canadian agents, distributors, brokers, and/or importers are often the
best equipped to assist exporters through the regulatory import process.
The best entry method depends on the food product and the sub-sector
identified as appropriate for each food product. Government and industry
import policies and trade acts regulate each sub-sector. Each U.S.
export opportunity must be thoroughly investigated relative to the
legislation that exists for the product requesting entry.

# 

# SECTION VI. QUESTIONS AND ANSWERS

The following are some of the common questions asked by U.S. food and
agricultural product exporters to the staff at the Office of
Agricultural Affairs in Ottawa.

1\. Question: Will the FAS office in Ottawa assist me with my label
review?

Answer: The Canadian Food Inspection Agency consolidates federal food
label review under its \"Food Labeling Information Service\". At
regional locations across Canada, these offices coordinate the
requirements of all federal departments to simplify product approval and
label compliance. It is recommended that U.S. exporters submit their
labels to the regional office closest to the targeted marketing area
(see list on page 11).

2\. Question: How long does it take to get a label review?

Answer: If the U.S. exporter provides sufficient information with their
submission to CFIA, a complete label assessment can be accomplished in
about two weeks.

3\. Question: How do I find a distributor?

Answer: The USDA/FAS Office of Agricultural Affairs, U.S. Embassy Canada
can provide assistance in locating a broker/distributor. Services
available to help exporters locate appropriate brokers/distributors
include USDA endorsed pavilions at various Canadian trade shows and a
matchmaker program entitled, CANADA CONNECT, (see FAS Report CA5060 on
the FAS Web Site: [www.fas.usda.gov](http://www.fas.usda.gov/)) for
details on this program that provides market information and meetings
with potential, pre-screened, buyers.

4\. Question: I know that Canada has a tariff rate quota for certain
dairy and poultry products? How do I know if my particular dairy or
poultry product is going to be affected by Canadian tariff rate quotas?

Answer: For a determination as to whether or not the product you intend
to export into Canada is within the scope of Canada's tariff rate quota
(TRQ), contact Ms. Elizabeth Udell, Canada Border Services Agency
(CBSA), Trade Policy and Interpretation Directorate at (613) 954-7013,
fax (613) 954-9646.

5\. Question: How do I identify the major Canadian importers of my
product(s)?

Answer: On the FAS web site:
[www.fas.usda.gov](http://www.fas.usda.gov/) click on "Exporter
Assistance" then on "foreign buyers list" and/or Industry Canada (IC)
has a database of major Canadian importers by product type. Access the
database at the IC web page:

http://strategis.ic.gc.ca/sc_mrkti/cid/engdoc/index.html

6\. Question: Will there be import duties on my food products entering
Canada?

Answer: Under provisions of the U.S./Canada Free Trade Agreement and the
North American Free Trade Agreement, all Canadian import duties on all
U.S. food and commercial products have been phased out (with the
exception of over-quota tariffs on dairy and poultry products). However,
there are federal excise taxes and surcharges on alcoholic beverages.

7\. Question: I've heard that U.S. fruit and vegetable exporters can't
sell apples or potatoes to Canada. Is this true?

Answer: There are package-size regulations restricting bulk imports if
Canadian supplies are available but imports in consumer and wholesale
sized packages are permitted. Commonly referred to as Canada's "bulk
waiver" requirement (or ministerial exemption), processors or packers
must apply to the Canadian Food Inspection Agency (CFIA) for a special
exemption to import bulk products.

8\. Question: My company is new to exporting. Can I test market my
product(s) in Canada with my U.S. label? I don't want to produce a label
for the Canadian market until I know it will be successful.

Answer: Canada's test marketing provision is designed to facilitate the
marketing of new products of a type that are new, unique and unavailable
in Canada. It does not apply to U.S. brand introductions into Canada for
processed foods commonly found on retail shelves.

# SECTION VII. CONTACTS

Office of Agricultural Affairs

U.S. Embassy, Canada

P.O. Box 5000

Ogdensburg, NY 13669-0430

Telephone: (613) 688-5267

Fax: (613) 688-3124

Email: agottawa@usda.gov

Gary C. Groves, Agricultural Minister-Counselor

Lisa Anderson, Agricultural Attaché

Marilyn Bailey, Marketing Specialist

George C. Myles, Senior Agricultural Specialist

Darlene Dessureault, Agricultural Specialist

Joyce Gagnon, Administrative Assistant

## Summary of Useful Websites

The following is a listing of the major Canadian websites mentioned in
the body of this report:

  -------------------- --------------------------------------------------
  **Canada Border      <http://www.cbsa-asfc.gc.ca/menu-e.html>
  Services Agency**    

  -------------------- --------------------------------------------------

  -----------------------------------------------------------------------
  **Canadian Food Inspection Agency**

  -----------------------------------------------------------------------

  -------------------- -----------------------------------------------------------------------------------------------
  Home Page            [http://www.inspection.gc.ca/]{.underline}

  Acts and Regulations [http://www.cfia-acia.agr.ca/english/reg/rege.shtml]{.underline}

  Guide to Food        <http://www.inspection.gc.ca/english/bureau/labeti/guide/guidee.shtml>
  Packaging and        
  Labeling             

  Meat & Poultry       [http://www.inspection.gc.ca/english/anima/meavia/meaviae.shtml]{.underline}
  Inspection           
  Regulations          

  Fish Inspection      [http://www.cfia‑acia.agr.ca/english/anima/fispoi/fispoie.shtml]{.underline}
  Directorate          

  Novel Foods          <http://www.hc-sc.gc.ca/food-aliment/mh-dm/ofb-bba/nfi-ani/e_novel_foods_and_ingredient.html>
  -------------------- -----------------------------------------------------------------------------------------------

  -------------------------- ------------------------------------------------------
  **Department of Foreign    <http://www.dfait-maeci.gc.ca/eicb/eicbintro-en.asp>
  Affairs and International  
  Trade**                    

  -------------------------- ------------------------------------------------------

  -------------------- ----------------------------------------------------------------------------------------------------
  **Health Canada**    

  Home Page            [http://www.hc‑sc.gc.ca]{.underline}

  Food and Drugs Act   <http://www.hc-sc.gc.ca/food-aliment/friia-raaii/food_drugs-aliments_drogues/act-loi/e_index.html>

  Nutrition Labeling   [http://www.hc‑sc.gc.ca/hppb/nutrition/labels/index.html]{.underline}
  -------------------- ----------------------------------------------------------------------------------------------------

  -------------------- --------------------------------------------------
  **Justice            http://www.justice.gc.ca
  Department**         

  -------------------- --------------------------------------------------

  --------------------------------- -------------------------------------------------------------
  **Pest Management Regulatory      
  Agency**                          

  Maximum Residue Levels            <http://www.pmra-arla.gc.ca/english/aboutpmra/about-e.html>
  --------------------------------- -------------------------------------------------------------

# APPENDIX I. Statistics

## Table A. Key Trade and Demographic Information

+----------------------------------------------------+-----------------+
| Agricultural Imports From All Countries/ U.S.      | \$15.6 billion  |
| Market Share 1/                                    | / 57%           |
+----------------------------------------------------+-----------------+
| Consumer Food Imports From All Countries/ U.S.     | \$13.2 billion  |
| Market Share                                       | / 60%           |
+----------------------------------------------------+-----------------+
| Edible Fishery Imports From All Countries/ U.S.    | \$1.5 billion / |
| Market Share                                       | 40%             |
+----------------------------------------------------+-----------------+
| Total Population, July 2006                        | 32.6 million    |
+----------------------------------------------------+-----------------+
| Urban Population / Rural Population / Percent      | 25.9 mil./ 6.7  |
| Rural/2001                                         | mil/            |
|                                                    |                 |
|                                                    | 19%             |
+----------------------------------------------------+-----------------+
| Number of Metropolitan Areas Over 100,000          | 35              |
+----------------------------------------------------+-----------------+
| Per Capita Gross Domestic Product (U.S. dollars);  | \$27,346        |
| 2003                                               |                 |
+----------------------------------------------------+-----------------+
| Unemployment Rate (September 2006)                 | 6.4 %           |
+----------------------------------------------------+-----------------+
| Per Capita Food Expenditures, (U.S. dollars)       | \$1,563         |
+----------------------------------------------------+-----------------+
| Total Employment / Women / Men (census 2001)       | 15.8 mil / 7.3  |
|                                                    | / 8.5           |
+----------------------------------------------------+-----------------+
| Exchange Rate, average annual 2005                 | C\$=US\$.8253   |
+----------------------------------------------------+-----------------+

Footnotes: 1/ AAFC

## Table B. Consumer Food & Edible Fishery Product Imports

![](media/image4.wmf)

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## Table C. Top 15 Suppliers of Consumer Foods & Edible Fishery Products

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![](media/image5.wmf)