The Competition Bureau of Canada has clear guidelines as to what defines a “Product of Canada” and what defines a product “Made in Canada”. The Made in Canada designation is the harder of the two to achieve, though is largely a self-appointed designation.
3.2.2 “Made in Canada” claims
The Bureau will generally not challenge a representation that a good is “Made in Canada” under the false or misleading representations provisions of the Acts if these three conditions are met:
the last substantial transformation of the good occurred in Canada;
at least 51% of the total direct costs of producing or manufacturing the good have been incurred in Canada; and
the “Made in Canada” representation is accompanied by an appropriate qualifying statement, such as “Made in Canada with imported parts” or “Made in Canada with domestic and imported parts”. This could also include more specific information such as “Made in Canada with 60% Canadian content and 40% imported content”.
Source: Competition Bureau of Canada
What is the difference between made in Canada and Product of Canada?
As per the Competition Bureau of Canada: “Product of Canada claims will be subject to a higher threshold of Canadian content (98%), while Made in Canada claims will remain subject to a 51% threshold of Canadian content. Made in Canada claims should be accompanied by a qualifying statement indicating that the product contains imported content.”
How we apply these Principles to our Made in Canada Database
The competition bureau has strict claims for companies claiming to be made in Canada. But there are some serious grey areas. You’ll find certain companies claim this status yet the percentage of product actually produced in Canada to be a small percentage of their actual total operations. During our investigations we’ll add this information to the company listing so that you can make your best choices when purchasing their products. The ideal business to us is one that is Canadian owned, is headquartered in Canada, designs its products in Canada, sources materials in Canada, and is finally made in Canada. Although these exist they are few and far between, many companies, even great Canadian ones source materials from outside the country. You’ll find a few listings on our site which do not make their products in Canada, but are a Canadian company and are a best last resort since their is no domestic manufacturing for a given category. We will make this clear in the listing so you’ll have total clarity with what you’re getting and where it came from.