Product of Canada vs. Made in Canada – What’s the Difference

• “Made in Canada” means at least 51% of the product’s direct production costs are from Canada, and the final transformation must occur in Canada.
• “Product of Canada” means at least 98% of the product’s direct production costs are from Canada, including raw materials, labor, manufacturing, and processing.
• Both ‘Made in Canada’ and ‘Product of Canada’ labels require the product’s last substantial transformation to have occurred in Canada.
• For non-food items, “Made in Canada” items must include a qualifying statement if they contain imported content.
• The Canadian Food Inspection Agency (CFIA) provides guidelines for food products.
• Competition Bureau oversees non-food items.
• Misleading labels can result in penalties, including fines or prison time.

Made in Canada vs. Product of Canada: Food Item Example:

For example, in producing a jar of maple syrup. Here are some hypothetical production costs:

• Raw Materials (maple sap, containers, labels): $5
• Labor (salaries for workers collecting sap, processing it, bottling the syrup): $3
• Manufacturing and Processing (cost of running the equipment, energy, etc.): $2
• Total production cost is $10.

“Made in Canada” – Food Item Example

To qualify as “Made in Canada,” at least 51% of the production costs should be Canadian. In the maple syrup example above:

• Raw Materials: $2 for example is sourced from Canada. ($2 is 40% of $5)
• Labor: $3 from Canadian workers (100%)
• Manufacturing and Processing: $2 from Canadian facilities (100%)
• Sum of Canadian costs = $2 (materials) + $3 (labor) + $2 (manufacturing) = $7.
• $7 out of the total $10 is Canadian, which is 70%. So this jar of maple syrup can be labeled as “Made in Canada.”

“Product of Canada” – Food Item Example

To qualify as “Product of Canada,” at least 98% of the production costs must be Canadian.

• Raw Materials: $4.90 sourced from Canada ($4.90 is 98% of $5)
• Labor: $3 from Canadian workers (100%)
• Manufacturing and Processing: $2 from Canadian facilities (100%)
• Sum of Canadian costs = $4.90 (materials) + $3 (labor) + $2 (manufacturing) = $9.90.
• $9.90 out of the total $10 is Canadian, which is 99%. So this jar of maple syrup can be labeled as “Product of Canada.”

Made in Canada vs. Product of Canada: Non-Food Item Example:

For example, in producing a winter jacket. Here are some hypothetical production costs:

• Materials (fabric, zippers, buttons, insulation): $30
• Labor (workers sewing and assembling the jacket): $20
• Manufacturing and Processing (cost of running the machines, energy, etc.): $10
• Total production cost: $60

“Made in Canada” – Non-Food Item Example

To qualify as “Made in Canada,” at least 51% of the production costs should be Canadian. In the winter jacket example:

• Materials: $20 sourced from Canada ($20 is 66.7% of $30)
• Labor: $20 from Canadian workers (100%)
• Manufacturing and Processing: $10 from Canadian facilities (100%)
• Sum of Canadian costs = $20 (materials) + $20 (labor) + $10 (manufacturing) = $50.
• $50 out of the total $60 is Canadian, which is about 83.3%. So this winter jacket can be labeled as “Made in Canada.”

“Product of Canada” – Non-Food Item Example

To qualify as “Product of Canada,” at least 98% of the production costs must be Canadian.

• Materials: $29.40 sourced from Canada ($29.40 is 98% of $30)
• Labor: $20 from Canadian workers (100%)
• Manufacturing and Processing: $10 from Canadian facilities (100%)
• Sum of Canadian costs = $29.40 (materials) + $20 (labor) + $10 (manufacturing) = $59.40.
• $59.40 out of the total $60 is Canadian, which is 99%. So this winter jacket can be labeled as “Product of Canada.”