Market Reports / Tariffs
Indian Handmade Carpets, Rugs & Other Floor Coverings
Canada
Canada is an upcoming & emerging market in the world. There are vast scope for
Indian Handmade Carpets in Canadian markets, due to its (Indian) rich designs and
vast range at a very competitive price and also leading importers in Canada export
Handmade Carpets to other parts of the globe.
Exports of Indian Handmade Carpets and Other Floor Coverings to Canada is Rs.
141.19 Crores as can be seen from the under mentioned export figures maintained by
MOC:
Imports & Exports of Handmade Carpets from & to Canada:
Import from
Exports to Canada
S.
Canada
Particulars
No.
2011-12 2012-13 2011-2012 2012-2013
2013-14
1.
Value in Rs.
49.70
0.50
94.06
118.81
141.19
Crores
Value in USD
0.10
0.00
19.61
21.85
23.34
Millions
Import
Tariffs
-
Canada
Handmade Products from India that do not qualify under the NAFTA rules are
subject to Canada's MFN rates of duty. Canada applies percent ad valorem
duties on the f.o.b. (free on board) value of imports.
Canada Tariffs (percent ad valorem) for Textiles, Apparel, Footwear and
Travel Goods
HS Chapter/
Tariff Rate Range
Subheading
(%)
Carpet
57
0 – 14
Additional Import Taxes and Fees--Textile and apparel imports are subject to a
5-percent Goods and Services Tax (GST) applied on the duty-paid value of
imported goods plus any other duties and taxes. The GST is paid to Revenue
Canada by the importer once the goods clear customs. Each Province, except
Alberta, also has a Retail Sales Tax.
Samples / Temporary Entry--Canada allows temporary duty-free entry of certain
commercial goods, such as commercial samples, for trade shows and product
demonstrations. Such products generally can be classified under H.S. tariff item
No. 9993.00.00 as long as they are not being imported for sale, lease, further
manufacturing, or processing. For those goods that qualify, a Temporary
Admission Permit, Form E29B will be required and a refundable security deposit
may be required. For more information on the conditions and procedures for
temporarily entry of goods into Canada for a convention, meeting, trade show, or
exhibition, refer the CBSA publication, Memorandum D8-1-2.
It is important to note that since the implementation of the NAFTA, many Indian.
goods are duty-free, thus eliminating the need for temporary entry. However, the
GST is still applicable on duty-free goods, while goods entered temporarily may
be eligible for relief from GST.
ATA Carnet--An ATA Carnet or "Merchandise Passport" is a document that
facilitates the temporary importation of products into foreign countries by
eliminating tariffs and other import taxes or charges normally required at the time
of importation. For more information or to apply for an ATA Carnet.
Import Documentation/Procedures (Canada)
The NAFTA Certificate of Origin is not a required document to ship to Canada. In
fact, it should only be filled out if the product qualifies for NAFTA preferential
treatment. Products not manufactured or produced within the NAFTA region do
not qualify for NAFTA preferential tariff treatment.
The Canadian Border Services Agency - CBSA publication Accounting for Your
Shipment describes the required documents for general imports. For further
general information, see CBSA's publication Importing Goods into Canada.
Import Licenses--Import licensing requirements remain in place for selected
textiles and clothing products, on the Import Control List. These requirements are
in connection with the implementation of Tariff Preference Level (TPL) provisions
under NAFTA, and Canada's FTAs with Chile and Costa Rica. TPLs are
preferential tariff quotas for non originating textiles and clothing (i.e., textiles and
clothing manufactured in an FTA country that do not meet the FTA rules of
origin). To benefit from these TPLs, import licenses are required and are granted
on a first come first served basis. For further information regarding Canadian
import licenses contact the Import Controls Division of the Canadian Department
of Foreign Affairs and International Trade.
Department of Foreign Affairs and International Trade
Department of Finance - Canada
For information on common export documents, such as transportation
documents, export compliance documents, certificates of origin, certificates for
shipments of specific goods, temporary shipment documents, and other exportrelated documents, see the Export.gov webpage on Common Export
Documents.
For more information on import procedures and documentation requirements,
see the Country Commercial Guides (CCG) in the U.S. Commercial Service
Market Research Library (enter your country of interest in the "country" field,
and enter "Country Commercial Guide (CCG)" in the "Report Type" field. Some
market research reports are available only to U.S. companies and U.S.
students/researchers that are registered with Export.gov.
Import Restrictions (Canada)
Standards - Canada
The Standards Council of Canada - SCC coordinates standardization activities in
Canada and manages Canada's participation in the ISO and in regional
standards organizations. Canada’s National Standards System (NSS) is the
system for developing, promoting and implementing standards in Canada.
Technical regulations are published in the Canada Gazette.
The Canadian General Standards Board - CGSB certification and qualification
program lists cover the following textile-related products and services -- carpets
and underlay, construction materials, medical products and protective clothing.
The Underwriters Laboratories of Canada - ULC tests textiles and fibrous
materials. The Bureau de Normalisation du Québec - BNQ verifies the conformity
of products, processes, services and persons and develops certification
programs for textile products.
In most cases, products meeting U.S. standards will meet Canadian standards
with little or no modification. The Technical Document Center offers Canada’s
most comprehensive standards collection, which can be accessed by the public.
Please note that technical regulations and standards may differ among provinces.
NAFTA allows U.S. exporters to get "one-stop shopping" product approval for
both the United States and Canada by submitting their product to only one
organization in order to get product certification for both countries. This eliminates
the time and expense of obtaining separate certifications for each market.
Numerous U.S. testing and certification organizations have received accreditation
from the SCC. A complete list of these organizations is available on the website
of the SCC website. Provincial regulations, however, do not fall under the NAFTA
accreditation framework. U.S. companies faced with difficulties in obtaining
provincial approvals should consult with the U.S. and Foreign Commercial
Service to determine the nature of the problem.
Any proposed regulatory change in Canada is listed in the Canada Gazette.
Flammability Standards--Under the Hazardous Products Act, there exists a
basic, minimum flammability standard for all consumer textile articles, in particular
children’s soft toys, articles of bedding, carpets, rugs and mats, mattresses
and tents. Products that do not meet the established requirements cannot be
sold, advertised or imported into Canada. All questions regarding the Hazardous
Products Act has to be directed to the Product Safety Office of Health Canada.
Upholstered & Stuffed Articles - The Upholstered and Stuffed Articles Act
prohibits the use of unclean or used fillings in articles sold in Canada. A fiber
content statement for all textile components used in articles such as pillows,
comforters, sleeping bags, and quilted garments must be stated. Industry Canada
provides detailed information on Federal Filling and Stuffing Regulations. All
manufacturers of upholstered or stuffed articles, whose goods are destined for
sale in the provinces of Quebec, Ontario and Manitoba, are required to contact
the respective Provincial office provided on the Canada Competition Bureau
website.
The National Center for Standards and Certification Information (NCSCI) at the
National Institute of Standards and Technology (NIST) in the U.S. Department
of Commerce provides information on U.S. and foreign standards, technical
regulations, and conformity assessment procedures for non-agricultural
products. NCSCI staff responds to requests for information by identifying
relevant standards and regulations, and by referral to the appropriate standardsdevelopers or private-sector organizations. Under copyright restrictions, NCSCI
cannot provide copies of standards, but NCSCI does provide sources for
accessing standards.
Labeling – Canada
Canada’s labeling requirements for textile and apparel products are covered in
the Textile Labeling Act and the Guide to the Textile Labeling and Advertising
Regulations (TLAR). The Textile Labeling Act requires that consumer textile
articles bear accurate and meaningful labeling information to help consumers
make informed purchasing decisions. A dealer (defined as a retailer,
manufacturer, importer, or distributor) of consumer textile articles (defined as any
textile fiber, yarn or fabric, or any product made in whole or in part from a textile
fiber, yarn, or fabric that is in the form in which it is to be sold to any person for
consumption or use) is responsible for ensuring that consumer textile articles are
labeled in the manner required by the TLAR. Unless a consumer textile article is
exempt from the labeling requirements of the TLAR, a dealer must ensure that a
textile label adheres to fiber content, language, dealer identity, and form and
application of labels requirements. Canada’s Competition Bureau website
contains a Guide to the Textile Labeling and Advertising Regulations and
Labeling Assessment Tools - Textile Labeling.
The labels on most apparel and textile items must be permanently attached and
able to withstand at least ten cleanings. However, some articles, such as hosiery,
undergarments, gloves, scarves, swimwear, and tablecloths may have a
nonpermanent label. Special requirements exist for prepackaged articles and
labeling alternatives exist for home-crafted articles.
Textile and apparel labels must include the dealer identification, country of origin,
and fiber content (in English and French) information. Non-required information
may include, care instructions, size, and trademarks or descriptive terms.
Dealer Identification--The dealer identity includes the name and address of the
importer, manufacturer or distributor or the CA number. If available, the Canadian
dealer's 5-digit identification number commonly referred to as a "CA Number",
can be used instead of a name and full postal address. For more information on
the CA Identification number, see the Competition Bureau Canada website.
Fiber Content--The amount of textile fiber present in a textile product must be
determined according to established test methods. For every fiber that is present
in an amount of five percent or more by mass in a textile article, both the generic
name and the amount must be listed on the label. The fibers must be listed in
order of predominance and be in English and French.
Care Labeling--In Canada, there is a voluntary system for care labeling allowing
the use written instructions or symbols. However, the Canadian General
Standards Board - CGSB has developed a care labeling standard, identified as
Care Labeling of Textiles - CAN/CGSB 86.1-2003. See the Office of Consumer
Affairs of Industry Canada website for the Guide to Apparel and Textile Care
Symbols. Copies of CAN / CGSB-86.1-2003 are required to be purchased from
the Canadian General Standards Board - CGSB, by paying them the fees in
advance. .
Size--Manufacturers are not required under the TLAR to manufacture garments
that conform to specific size dimensions or use specific size codes. The
determination of garment dimensions and designation of size codes or "sizes" are
left to the discretion of the dealer. However, in accordance with Section 5 of the
Act, where a size dimension has been identified, it must be accurate. For
information and / or data regarding body dimensions for women, infants and
children, as well as garment dimensions and size designations for specific articles
of clothing for women, infants and children, please see the standards published
by the Canadian General Standards Board - CGSB.
Language--Except in areas where only one official language is used in consumer
transactions, the required fiber content information, that is, the generic names, as
well as any information directly relating to the fiber content, must be bilingual.
Two separate labels may be used, one English and one French. Care instructions
are also required to be in French and in English. Dealer identification, as well as
the country of origin, need only be in one of the official languages. The province
of Quebec has additional requirements concerning the use of the French
language on all products marketed within its jurisdiction. Information on these
requirements may be obtained from the Office de la Langue Françoise.
Prepackaged textile products--When a consumer textile article is sold in a
wrapper, package or container and the disclosure label attached to the article is
clearly visible to the prospective purchaser, no further labeling is required.
However, if the article is wrapped, packaged or contained so that the disclosure
label is not visible, the information required to be shown in the label must be
repeated on the wrapper, package or container in the prescribed manner.
When an article sold to the consumer in a wrapper, package or container is
classified as being allowed a nonpermanent label, or is enclosed in the wrapper,
package or container only as a premium, and the main product being sold is not a
textile fiber product (e.g. a towel in a box of detergent), the wrapper, package or
container serves as the disclosure label for the consumer textile article. The
textile article itself does not have to be labeled.
Enforcement - Inspectors from Industry Canada carry out controls on imported
goods following specific complaints or notification by Customs. Inspectors check
fiber content, review product classification issues, and perform random controls in
shops.
The Textile Labeling Act prohibits a dealer from importing into Canada consumer
textile articles without a disclosure label. However, the regulations allow a dealer
to import incompletely or improperly labeled consumer textile articles and label
them in Canada, provided a Competition Bureau officer is notified at the time, or
in advance of importation, of all pertinent details on the nature and quantity of the
importation, the date and port of entry and the address of the premises where the
re-labeling will be completed. On completion of the re-labeling, the dealer must
notify the officer and provide a reasonable opportunity to inspect the labeled
goods prior to resale.
Product safety labeling --Under the Hazardous Products Act and regulations
concerning floor coverings, small carpets and rugs as well as floor coverings
intended for use exclusively out of doors that do not meet no flammability
requirements of the act may be exempted, provided they bear a warning label
giving prescribed information to alert consumers to their flammability. “Small”
items are defined as floor coverings with an area of no more than 24 square feet
and a length of no more than six feet.
Environmental labeling -- Industry is charged with ensuring that any claims
about a product being "environmentally-friendly" are accurate and in compliance
with relevant legislation. In general, environmental claims that are ambiguous,
misleading or irrelevant, or that cannot be substantiated, should not be used. In
all cases, environmental claims should indicate whether they are related to the
product itself or to the product's packaging materials. The Canadian government
has issued a set of guiding principles governing the use of environmental labeling
and advertising which may be obtained by contacting Industry Canada.
Advertising--Advertisements for textile and apparel products are subject to the
advertising requirements of the Textile Labeling and Advertising Regulations.
Fiber content disclosures are not required in the advertising of the product.
However, if the fiber content is mentioned, the generic names of all fibers must
then be stated in descending order of predominance. False representations in the
advertising of apparel and textiles are strictly prohibited. Copies of the Canadian
Textile Labeling and Advertising Act are required to be obtained from Canada
Government Publishing or can be seen at the Competition Bureau Canada
website.
Intellectual Property Rights – Canada
Canada's system of intellectual property rights is administered by the Canadian
Intellectual Property Office - CIPO, which is a special operating agency of
Industry Canada. The CIPO website has guides to registration in Canada for
patents, trademarks, and copyrights.
The CIPO website has guides to registration in Canada of patents. To search for
existing patents see the Canadian Patents Database.
Market Information - Canada
See Industry Canada's textile page for Canadian import / export data and textile
and apparel market information.
The Canadian Government maintains a Canadian Importers Database, available
on-line on Strategies, Industry Canada's website. The database includes
companies that import specific products into Canada, providing names and
locations of major importers and brokers, by product or by city, as well as by
origin of shipments. The database also provides total import value by product.
Trans-Pacific Strategic Economic Partnership Agreement (TPP)--On
November 14, 2009, President Obama announced that the United States would
engage in Trans-Pacific Strategic Economic Partnership Agreement negotiations,
which currently includes the United States, Australia, Brunei, Chile, Malaysia,
New Zealand, Peru, Singapore, Vietnam, Canada, Mexico and Japan. For further
information about TPP, see the Trans-Pacific Partnership page on the Office of
the U.S. Trade Representative website.
The Public Works and Government Services Canada - PWGSC is the
Government's principal purchasing arm. Departments and agencies must use
PWGSC for procurement of goods, although authority to acquire low-dollar-value
items, of up to Can$5,000 (Can$25,000 in some cases) has been delegated to
departments. The Canadian government’s official Internet-based electronic
tendering service MERX gives subscribers access to open tenders from the
federal government, provincial governments, and many municipalities, school
boards, universities, and hospitals that are subject to Canada’s trade agreements.
Also see buyandsell.gc.ca.
U.S. organizations account for the largest share of military contract awards by the
Government of Canada. See the Department of National Defence and the
Canadian Armed Forces website.
Chapter Ten of the North American Free Trade Agreement (NAFTA) provides
national treatment in Canada for U.S. companies on Canadian federal
government procurement contracts. Provincial and local procurements generally
do not offer national treatment opportunities to U.S. companies as they are
excluded from Chapter Ten of NAFTA.