Made in Canada VS Product of Canada

“Made in Canada” generally means the last substantial transformation of a product occurred in Canada, with at least 51% of the total direct costs of production incurred within the country. However, qualifying statements, like “Made in Canada with imported parts,” are required to clarify the product’s origin. 

Here’s a more detailed breakdown:

• Last Substantial Transformation:This means the final significant step in the manufacturing or processing of the product took place in Canada, even if some ingredients or components are imported. 
• 51% Canadian Content:For a product to be labeled “Made in Canada,” at least 51% of the total direct costs of producing or manufacturing the good must have been incurred in Canada. 
• Qualifying Statements:To ensure transparency, products labeled “Made in Canada” must include a qualifying statement that explains whether the product contains imported ingredients or parts. Examples include:
  • “Made in Canada with imported parts” 
  • “Made in Canada with domestic and imported parts” 
  • “Made in Canada from imported ingredients” 

“Product of Canada” on a label means that at least 98% of the total direct costs of producing or manufacturing the good have been incurred in Canada, and the last substantial transformation of the good occurred in Canada. 

Here’s a more detailed breakdown:

• High Canadian Content:For a product to be labeled “Product of Canada,” a significant portion of its production costs, including ingredients, processing, and labor, must be Canadian. 
• Last Substantial Transformation:The final, significant change or processing that transforms the product into its final form must take place in Canada. 
• Not “Made in Canada”:While “Product of Canada” and “Made in Canada” are related, “Product of Canada” has a higher threshold of Canadian content (98%) compared to “Made in Canada” (51%). 
• Food vs. Non-Food:The guidelines for “Product of Canada” apply to both food and non-food products, but the specific requirements may vary slightly. 
• Examples:
  • A jar of maple syrup labeled “Product of Canada” means the sap was harvested, processed, and bottled in Canada. 
  • A food product labeled “Product of Canada” means that all or virtually all major ingredients, processing, and labor used to make the food product are Canadian.