Meet U.S. exporting rules with the TCS
In this week’s Ask the TCS column, a Canadian apparel company looking to sell its products in the U.S. asks about American labelling requirements, duties and permits. A trade commissioner in Chicago and a key partner organization work together to respond.
Rose Fishman, President of SCKC, a children’s clothing company, asks:
My company is launching a line of children’s wear and I’d like to test market our products in the U.S. But I have a few questions:
1. Are there any particular labelling requirements beyond what we already have? Our labels currently have the CA number, fibre content, made in Canada as well as care instructions — all in French and English. Are we required to obtain an RN number?
2. Are we required to establish a U.S. office address?
3. Is it necessary to obtain any specific permits to take our product to the U.S.?
4. Because these goods are made in Canada, will there be duties to sell our product in the U.S.?
Answers to these questions would be much appreciated.
Many thanks in advance,
Rose Fishman, President
SCKC
Ann Rosen, Trade Commissioner at the Canadian Consulate General in Chicago, writes:
Dear Ms. Fishman,
Trade Commissioner at the Canadian
Consulate General in Chicago
Thanks for your questions regarding exporting children’s apparel to the U.S. Due to the complexity of export regulations for apparel, we have chosen to answer your questions with the assistance of our partner organization, the Canadian Apparel Federation.
1. Are there any particular labelling requirements beyond what we already have? Currently our labels have a CA number, fibre content, Made in Canada symbol as well as care instructions — all in French and English. Are we required to obtain RN#?
In general, care, labelling and fibre content requirements are similar for Canadian and U.S. markets. U.S. info is easily found on the website of the Federal Trade Commission. (Look for the publication, Threading Your Way Through the Labelling Requirements Under the Textile and Wool Acts). There are minor variations in terms of fibre names and other requirements, and companies should review the regulations and confirm their application meets these requirements.
Dealer identification is required for apparel and textile articles in both Canada and the United States. In Canada, a CA number is used and in the U.S. the RN number is used to identify the dealer of a consumer textile article. Although the regulations are much the same in both countries, there is no mutual recognition of the respective systems. Therefore, if a Canadian firm wants to market their products in the U.S. they must have either the RN number or their postal address on the label.
In Canada, it is legal to market products as “Made in Canada” without stating this on the label (of course, provided the goods are manufactured in Canada). If you market these products in the U.S., you must label them “Made in Canada” and you must ensure the labels are in a conspicuous place.
One major difference in the U.S. is the recently introduced requirement for tracking information and labelling of all children's products, including apparel. Companies should visit the Consumer Product Safety Commission (CPSC) website for more information on this and other provisions of the Consumer Product Safety Improvement Act.
2. Are we required to establish a US office address?
No. You would only need to establish an office in the U.S. if you wish to apply for an RN number.
3. Is it necessary to obtain any specific permits to take our product to the US?
New product safety requirements introduced in the U.S. in 2008 have a significant impact on children’s wear. Exporters to the U.S. must not only meet new thresholds for certain toxic substances such as lead and phthalates — and for other risks such as flammability — but they must also certify that their products are in conformity with those regulations. This requirement goes into effect in February 2010. Visit the Consumer Product Safety Commission website for more information on this.
4. Because my goods are made in Canada, will there be duties to sell our product in the U.S.?
Apparel products qualify for duty-free access to the U.S. if they meet rules of origin under NAFTA. Most apparel articles must be cut and sewn in Canada from fabrics produced within NAFTA from yarns which were also produced in the region. Unfortunately, these rules disqualify a large amount of Canadian production.
There are provisions to export apparel under tariff preference levels and thereby obtain the tariff benefits of NAFTA for product that does not meet this stringent rule of origin. These export "quotas" are administered by the Department of Foreign Affairs and International Trade.
We hope you find this information useful. For more information on how the Canadian Trade Commissioner Service can help you, visit the Canadian Trade Commissioner Service's website.
You can also visit the Canadian Apparel Federation’s website. The Canadian Apparel Federation provides a number of services, including key business and technical information, as well as relevant information on trade agreements and industry trends for Canadian companies involved in the design, manufacture and marketing of apparel. For more information and how to become a member, visit Canadian Apparel Federation’s website.
Thank you for your interest in the Chicago market. If you have any questions or need additional information, please feel free to contact us.
Sincerely,
Ann F. Rosen
Trade Commissioner
Canadian Consulate General in Chicago
Tel.: 312-327-3624
Bob Kirke
Executive Director
Canadian Apparel Federation
Tel.: 613-231-3220
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