The Government of Canada has very flexible trade regulations with tariff-free and duty-free business facilities through the LDCT for its LDCs. There are almost no or very few restrictions on foreign exchanges and the license and permits for importation are almost not required except on a few goods. As per the export and import permits Act, the license is only required for a variety of agricultural products including eggs and dairy products and poultry. A number of clothing items, textile and steel products also need a license in the Canadian importation. Get in touch with Clearit Canada to know about the details of trade regulations and carry out business in Canada.
However, some of the commodities are very tightly restricted in Canadian importation. They are medical devices and drugs, food products, food products and hazardous products, firearms and offensive weapons, certain motor vehicles and endangered species. The importation duties are levied on the transaction values of the goods which include brokerage, commission, royalties, packing, and transportation to the point in Canada. The products from China and Hong Kong are no more eligible under GPT or General Preferential Tariff scheme since 2015 January 1st.
In order to strengthen the local business by enhancing productivity and accelerating the competitiveness of the local trade, the Canadian Government has eliminated all manufacturing tariffs. These manufacturing items include textile materials, plastic, chemicals, wood articles, aluminium and glass, graphite, equipment and machinery. The Canadian trade turned out to be first G-20 economy and through a phased manner, eliminated duties on 1541 tariff lines in 2010 and 381 additional eliminations within 2015.
The Canadian Export and Import Permits Act is administered by the Export and Import Controls Board in Canada. The Import Controls regulates the restrictions of weapons, agricultural products, textile and clothing, and steel products. On the other hand, the Export Controls regulates the restrictions of agricultural products, peanut butter, refined sugar, nuclear energy materials and weapons, textiles and clothing, and technologically hazardous goods.
Every food material imported to Canada is subject to strict monitoring and verification under the Food and Drugs Act. The verification includes various aspects of quality standards of constituents and labelling procedures. The foods which are advertised or labelled as medication or treatment for any diseases or for any type of physical disorder, may not be permitted for importation or selling in Canada because food additives are very strictly monitored in the country.
Similarly, alcoholic beverages are also under strict regulations of the provinces and these items are imported through liquor commission. If any cosmetic manufacturer wants to launch a new brand of cosmetics in the market, he or she must submit the cosmetic notification form to the health protection branch of Health Canada before ten days of launching or selling the cosmetics in the market.
