Canadian goods

Canadian goods is a Government of Canada procurement term defined in the CanadaBuys Supply Manual glossary. The French equivalent is marchandises canadiennes. The glossary gives the term two meanings, one for the Canadian Content Policy and one for taxes and duties.

For the Canadian Content Policy, Canadian goods are goods wholly manufactured in Canada, goods originating in Canada, or products with imported components that have undergone sufficient change in Canada to be considered Canadian. For taxes and duties, the definition is wider and can include some foreign-origin goods. Which meaning applies depends on the context of the solicitation.

The Canadian Content Policy meaning

Under the Canadian Content Policy, the glossary recognizes three routes to qualifying as Canadian goods:

• The goods are wholly manufactured in Canada.
• The goods originate in Canada.
• The goods contain imported components but have undergone sufficient change in Canada to be considered Canadian.

The third route reflects the idea of substantial transformation, where an imported input is changed enough in Canada that the finished product counts as Canadian. A supplier may need to establish that the goods it offers meet one of these tests.

The taxes and duties meaning

For taxes and duties, the glossary defines Canadian goods as goods grown, produced or manufactured in Canada. It also covers foreign-origin goods that are duty- and tax-paid and have been entered for consumption in Canada. A product made abroad can therefore fall under this definition once it has cleared customs and the applicable duties and taxes have been paid. That is different from the Canadian Content Policy test, which looks at where the goods were made or substantially changed.

Where Canadian goods fit in federal buying

Public Services and Procurement Canada (PSPC) is the federal government's central purchasing agent, procuring goods and services for more than 100 departments and agencies. This includes defence goods such as ships and aircraft for the Canadian Armed Forces and the Canadian Coast Guard. Most federal tender notices for goods and services valued at $25,000 or more are published on CanadaBuys. Federal buyers acquire goods through contracts, standing offers and supply arrangements.

Canadian goods is related to, but narrower than, the broader idea of Canadian content. Under the federal Buy Canadian Policy, Canadian content can include domestic manufacturing, research and development, and other economic activity. The policy applies to the procurement contracts of federal departments and to grants and contributions programs. It also requires large federal construction and defence purchases to use Canadian-produced steel, aluminum and wood products where the policy's conditions are met.

What it means for a supplier bidding on Canadian public contracts

Read the Canadian-content, origin, manufacturing, certification, taxes and duties, and material-source clauses in each solicitation. The glossary establishes what Canadian goods means, but the evidence you must provide and the obligations you accept come from the solicitation and the resulting contract.

• Identify whether the clause relies on the Canadian Content Policy meaning or the taxes and duties meaning.
• For imported components, be ready to show the sufficient change that happens in Canada.
• For foreign-origin goods, confirm they are duty- and tax-paid and entered for consumption in Canada where that definition applies.
• On construction and defence bids, check whether steel, aluminum and wood product requirements apply.