Canada

• Labeling Requirements
• Standards for Container Sizes (Standards of Fill)
• Oenological Practices (Winemaking Standards)
• Required Documents
• Licensing
• Import Procedures
• Advertising
• Industrial Alcohol
• Tobacco Products
• Taxes/Tariffs
• Contacts

LABELING REQUIREMENTS

Canadian packaging and labeling requirements for wine, beer and distilled spirits are administered under Canada’s “Food and Drugs Act and Regulations and the Consumer Packaging and Labelling Act and Regulations.”  In addition to the general packaging and labeling requirements for most foods, the regulations for alcoholic beverages cover common names and standardized container rules.  The province of Quebec has additional requirements for alcoholic beverage labeling, namely that of requiring information on the label to be in French or in both French and English.

Labels must display, in English and French, the following information:

• Common name of product (i.e. light ale, liqueur, etc.; must be shown in type of at least 1.6 mm in height)
• “Imported for” or “Imported by” followed by Canadian dealer’s name and address
• Net quantity in metric units of volume (millilitres, litres), must be shown on the main label, clearly and prominently displayed, easily legible and in distinct contrast to any other information on the label
• Alcohol by volume declaration: Beverages containing 1.1% or more alcohol must declare the amount of alcohol by volume, shown as "X % alcohol by volume" or "X % alc./vol."
• Country of origin (e.g. Product of U.S.A.)
• Ingredients – this is required only for “unstandardized” alcoholic beverages, i.e. those beverages for which there is no standard in Division 2 of the Canadian Food and Drugs Regulations.  The ingredients must appear in descending order of proportion or as a percentage, both based on the weight of the ingredients prior to these being combined to make the product.  Examples of “unstandardized” alcoholic beverages include products such as sake, cocktails (manhattans, martinis), etc.
• Durable life date (if shelf life is 90 days or less)

For more information, refer to Chapter 10 of the Canadian Food Inspection Agency’sGuide to Food Labelling and Advertising.

Allergen Labeling for Wine:

Labeling of food allergens, while voluntary, is highly encouraged.  Wine products may label their products with the phrase “Contains sulphites”.

Please refer to the Food Allergens section of the Guide to Importing Food Products Commercially for more information.

GM (Genetically Modified) Food Labeling:

In principle, food products derived from genetic modification that are demonstrated to be safe and nutritious are treated the same as non-genetically modified foods with regard to labeling requirements.

Labeling for genetically modified foods and foods derived from genetically modified ingredients is voluntary.  For more information, please refer to the Genetically Engineered Foods page of the Canadian Food Inspection Agency website.
For a list of FAQs on Genetically Modified foods, please visit Health Canada’s Factsheets & Frequently Asked Questions page.

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STANDARDS FOR CONTAINER SIZES (STANDARDS OF FILL)

Standardized container size requirements for wine exist in the Consumer Packaging and Labelling Regulations:

“Wine bottled after January 1, 1979 may only be sold in Canada in a container size that has a net quantity of product of 50, 100, 200, 250, 375, 500, or 750 millilitres or 1, 1.5, 2, 3 or 4 litres” [Section 36(c) of the Consumer Packing and Labeling Regulations

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OENOLOGICAL PRACTICES (WINEMAKING STANDARDS)

The U.S. and Canada are signatories to the Mutual Acceptance Agreement on Oenological Practices, which recognizes differences in countries’ winemaking practices.  Through this Agreement, signatory countries (U.S., Argentina, Australia, Canada, Chile, and New Zealand) accept that wine made in another signatory country should be allowed to be sold in its market, despite the differences in oenological practices.  The Agreement, however, does not apply to variances in labeling regulations; therefore, U.S. exporters are still required to verify their labels are in accordance with Canadian regulations (refer to the Labeling Requirements section for more information).

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REQUIRED DOCUMENTS

The following is a typical list of documents that may need to be presented in order for the imported product to be released from Customs:

• Two copies of the cargo control document, which may be obtained from the carrier or freight forwarder
• Two copies of an invoice which helps support the value of the goods. The invoice should include:
  • Information regarding the importer and exporter
  • A description and value of the goods
  • The country of origin and the destination of the goods
  • The currency of settlement.
  • A Canada Customs’ invoice or a commercial invoice containing all the required information is necessary for goods with a value of $1600 or greater. An additional copy of the invoice is required in cases where the importer or broker intends to transmit the final accounting data through Customs Automated Data Exchange (CADEX).
• Two copies of a completed B3 form. A third copy is required if the shipment is valued over $1,600 US dollars.
• Permits, certificates, licenses or other documents that are required by the Canada Customs and Revenue Agency.

Please note that this list is by no means exhaustive and is simply included for information purposes; as such, importers are urged to contact their broker for confirmation of proper documentation required.

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LICENSING

Please refer to Import Procedures section below.

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IMPORT PROCEDURES

Beverage alcohol must be imported into Canada through a liquor board or commission in the province where the product will be sold/consumed.  Generally speaking, U.S. exporters must have their products “listed” by the liquor control agency in each province individually.  The liquor board or commission usually serves as the importer of record and along with the registered agent coordinates the importation of the product.

In most provinces, it is necessary to have a registered local agent who can assist in obtaining a provincial liquor board listing.  Agents also obtain label approvals and any other issues on behalf of the U.S. exporter.

U.S. exporters should contact the liquor control agency for the province in which they seek to do business in order to obtain a list of registered agents.

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ADVERTISING

Advertising of beverage alcohol products in Canada is controlled at both the federal and provincial levels.

Advertising is permitted for all beverage alcohol products, although legislation in this regard maintains several limitations that are aimed at promoting moderate, safe, and legal consumption.  Examples of these include regulations which prohibit advertising from being appealing to children as well as depictions of alcoholic drinks being consumed or indicating inebriation.

Advertising Standards Canada, an industry trade group, also clears scripts for alcohol advertising prior to production, and ensures that advertisements all federal and provincial standards.

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INDUSTRIAL ALCOHOL

Specially denatured ethyl alcohol may only be imported by permit holders.  Permits can be obtained by applying to any of the Regional Excise Duties office of the Canada Revenue Agency (CRA).

Documents presented to the CRA must include the following information, in addition to standard customs information:

• Strength of the ethyl alcohol by percent volume at 20 C
• Denaturants used and their quantities
• Other materials or substances added, excluding water
• End purpose, if specially denatured alcohol; and
• Valid excise permit number

Denatured or specially denatured alcohol is relieved of excise duty; however, a sampling program is in place to ensure that the goods are properly denatured.  The sampling can be done by a third party prior to Customs release in order to expedite the process.  Importers are responsible for all fees related to the sampling and testing of the goods.  For further information on the sampling process, importers are encouraged to review Canada Border Services Agency’s Customs Notice N-521.

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TOBACCO PRODUCTS

Importers must obtain a license from their Regional Excise Duties office of the Canada Revenue Agency (CRA) prior to importing tobacco products.

Imported tobacco products and raw leaf tobacco are subject to an excise duty levied under the Canadian Excise Act, 2001.  The excise duty varies depending on the type of product (e.g. for cigarettes, the duty is $0.396255 per five cigarettes, $1.572 per kilogram of raw leaf tobacco, and $14.786 per 1,000 cigars).  Imported cigars have an additional duty of 65% of the duty paid value.

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TAXES/TARIFFS

The government of Canada levies various taxes on alcohol beverage products, including:

• Customs Duty: equivalent to excise duty, levied on alcohol imported into Canada
• Excise Tax: levied on all alcohol beverage products
• GST: Goods and Services Tax levied at 5% of retail price
• Provincial Sales Tax collected on behalf of the provinces

The North America Free Trade Agreement (NAFTA) created duty free access for most beverage alcohol products imported into Canada from the U.S., and as such, the Customs duty does not apply.  The federal excise tax on alcohol, however, is imposed on all products, regardless of origin.

As of April 15, 2008, the excise tax for wine is CAD$0.62/liter, CAD$0.3122/liter for beer, and CAD$11.69/liter of pure alcohol (for spirits).

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CONTACTS

Please note that the Importation of Intoxicating Liquors Act, a federal statute, gives Canadian provinces and territories full control over the importation of intoxicating liquor into their jurisdictions. As such, importers should consult the appropriate provincial or territorial liquor authority (see list below) before considering the importation or interprovincial trade of intoxicating liquor.

Also, while the Canada Border Services Agency is the first line regulatory agency at border points ensuring that all imports have appropriate documentation, the Canadian Food Inspection Agency is the lead agency for ensuring that imports comply with the acts and regulations pertaining to food and agricultural products.  The Canadian Food Inspection Agency has the power to detain, destroy or return products that violate Canadian food regulations.

Provincial Liquor Commissions:

Most of the information in this guide was obtained from direct contact with various governmental organizations and embassies, as well as online sources.  The FAS Attaché reports at: http://www.fas.usda.gov/scriptsw/attacherep/default.asp served as the primary (online) sources used for this report.

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