THIS REPORT CONTAINS ASSESSMENTS OF COMMODITY AND TRADE ISSUES MADE BY USDA STAFF AND NOT NECESSARILY STATEMENTS OF OFFICIAL U.S. GOVERNMENT POLICY Required Report - public distribution Date: 12/19/2014 GAIN Report Number: CA14116 Canada Exporter Guide A Practical Handbook Approved By: Jeff Zimmerman Prepared By: Maria Arbulu Report Highlights: Canada continues to rank as one of the top destinations for U.S. agricultural exports. In fiscal year 2014, U.S. agricultural exports to Canada reached US$21.7 billion making Canada the second largest export destination followed by China. However, a closer look reveals Canada remains in the number one position as the ideal export market for U.S. consumer oriented/value added products, reaching $17 billion, an amount double to the second highest export destination, Mexico. This report is a practical guide for U.S. food exporters interested in marketing and shipping products to Canada. We encourage first time exporters and new to market companies to read thoroughly through this guide and from time to time refer to it as reference guide. Post: Ottawa Canada: Exporter Guide December 2014 Table of Contents A) General ..................................................................................................................................................................3 B) Consumer Trends in Retail Food ...........................................................................................................................4 SECTION II. MARKET STRUCTURE AND TRENDS .......................................................... 6 Market Sector Reports ................................................................................................................................................9 SECTION III. BEST HIGH-VALUE PRODUCT PROSPECTS ........................................... 11 What’s Hot? ............................................................................................................................................................. 11 SECTION IV. ROAD MAP FOR MARKET ENTRY ............................................................ 13 Entry Strategy ..........................................................................................................................................................13 SECTION V. FREQUENTLY ASKED QUESTIONS AND THEIR ANSWERS ................. 16 SECTION VI. CONTACTS ...................................................................................................... 17 Summary of Useful Websites ...................................................................................................................................18 SECTION VII. EXPORTER SERVICES, BUSINESS PROCEDURES, AND FOOD REGULATIONS ......................................................................................................................... 19 A) Export Services for U.S. Food and Agricultural Exporters ..................................................................................19 B) Business Customs Import Procedures and Documentation ..................................................................................20 Canada's Import Notification Requirements and Electronic Data Interchange (EDI) ...........................................22 Canadian Food Inspection Agency – The IMPORT SERVICE CENTER ............................................................22 Customs Brokers ..................................................................................................................................................23 Small Parcel Shipments ........................................................................................................................................24 Sample Products ...................................................................................................................................................25 Non-Resident Importers and the Good and Services Tax/Harmonized Sales Tax .................................................25 C) Food Regulations ................................................................................................................................................26 Purpose Labeling Requirements ...........................................................................................................................26 The CFIA’s Food Industry Labelling in Canada ...................................................................................................28 Food Labeling Information Service ......................................................................................................................29 Labeling of Shipping Containers ..........................................................................................................................31 Nutrition Labeling ................................................................................................................................................31 Enhanced Labeling Regulations on Pre-packaged Foods - Allergens ...................................................................33 Tariffs and Tariff Rate Quotas (TRQs) .................................................................................................................34 Packaging and Container Regulations ..................................................................................................................35 Food Additive Regulations ...................................................................................................................................36 Pesticides and Other Contaminants ......................................................................................................................37 D) Other Regulations and Requirements ..................................................................................................................38 E) Other Specific Standards .....................................................................................................................................39 Food Fortification.................................................................................................................................................39 Marketing Authorizations .....................................................................................................................................40 Test Marketing Authorization (TMA) and Other Authorizations: Processed Food Products ...............................41 Copyright and/or Trademark Laws .......................................................................................................................42 The Use of Health Claims and Types ...................................................................................................................42 Method of Production Claims and Types..............................................................................................................44 Novel Foods (Foods Containing Genetically Modified Crops) ............................................................................46 Fish and Seafood ..................................................................................................................................................47 Baby Foods ..........................................................................................................................................................47 Organic Foods ......................................................................................................................................................47 Pet Food ...............................................................................................................................................................48 Livestock Feeds....................................................................................................................................................49 Wine, Beer and Other Alcoholic Beverages .........................................................................................................49 Vitamins, Minerals, Probiotics, and Supplements ................................................................................................50 F) A New Food Regulatory Framework – Expected to Start in 2015 ........................................................................51 APPENDIX. Statistics ................................................................................................................ 53 Page 2 of 59 Canada: Exporter Guide December 2014 SECTION I. MARKET OVERVIEW A) General Canada continues to rank as one of the top destinations for U.S. agricultural exports. In fiscal year 2014, U.S. agricultural exports to Canada reached $21.7 billion making Canada the second largest export destination followed by China. 1 Agricultural exports from the United States to Canada accounted for 14 percent of global U.S. food and agricultural product exports as total U.S. exports amounted to $152 billion. However, a closer look reveals Canada remains in the number one position as the ideal export market for U.S. consumer oriented products, reaching $17 billion, an amount double to the second highest export destination, Mexico. Consumer-oriented agricultural products accounted for 78 percent by value of total U.S. food and agricultural export sales to Canada in FY2014. This is a 3 percent increase from the previous fiscal year During FY 2014, the majority of consumer-oriented agricultural categories such as fresh fruits, red meats, snack foods, fresh vegetables, breakfast cereals, pet foods, wine