Importing apparel and fashion products into Canada offers exciting opportunities for retailers, wholesalers, and e-commerce sellers. But before garments hit store shelves or online marketplaces, importers must navigate two critical areas: duty rates and labelling rules. Understanding both is essential for compliance, cost control, and consumer trust.
Table of Contents
Apparel and textile goods are among the more tightly regulated categories in Canadian customs. Unlike some consumer products, clothing often carries relatively high duty rates, which can significantly affect profit margins.
The exact duty rate depends on the product’s tariff classification, which is determined by the Harmonized System (HS) code. Classification is based on details such as fabric type, construction (knit, woven, or other), garment type, and whether it is for men, women, or children. Misclassification is one of the most common mistakes importers make, and it can lead to penalties or unexpected costs.
Most everyday garments, like shirts, trousers, and dresses, fall into duty brackets around the mid-teens in percentage terms. However, specific fabrics, specialized garments, or blended materials can carry higher or lower rates. On top of duties, importers must also factor in Goods and Services Tax (GST) and, depending on the province of entry, Harmonized Sales Tax (HST) or Provincial Sales Tax (PST).
For importers sourcing from countries with trade agreements with Canada, there is potential relief. Under agreements like USMCA/CUSMA, qualifying garments can sometimes enter Canada duty-free, provided strict rules of origin are met. Importers must be able to prove where their garments were manufactured and ensure they meet fabric content and processing requirements. Without proper documentation, duties apply at the full rate.
Another mechanism worth noting is the Tariff Preference Level (TPL). This system allows certain apparel products to receive preferential treatment even if the fabric or yarn originates outside the free trade zone. However, access to TPL benefits is subject to annual quotas, and once those fill up, duties revert to the higher general rate.
Duties may affect your bottom line, but labelling rules affect both compliance and consumer confidence. Canada enforces strict requirements under the Textile Labelling Act and related regulations. All garments sold in the Canadian market must carry specific information, and labels must be clear, durable, and bilingual.
Every garment must list its fibre content, with percentages for each fibre type present in significant amounts. For example, a cotton-polyester blend would need to declare both fibres and their proportions. This ensures consumers know exactly what they are buying and helps prevent misleading claims.
Labels must include the name and address of the company responsible for the garment in Canada. This could be the importer, manufacturer, or distributor. Having a traceable identity ensures accountability and provides consumers with a point of contact if needed.
All mandatory label information must appear in both English and French. Omitting one of the official languages is a common compliance error that can lead to enforcement actions or goods being pulled from shelves.
Garments must also state their country of origin. This helps prevent misrepresentation and ensures transparency. For example, a shirt made in China but finished in Canada cannot be labelled as “Made in Canada.” Country of origin marking is closely monitored and violations are treated seriously.
Labels must be permanently attached and durable enough to withstand at least ten washings without becoming illegible. Placement should be such that consumers can easily locate and read the information before purchase. While some exceptions exist for certain small articles or accessories, the general expectation is that all labels remain accessible and accurate throughout the garment’s lifecycle.
For businesses in the fashion industry, compliance with duty rates and labelling rules is non-negotiable. High duties can eat into margins if not accounted for, while improper labelling can lead to rejected shipments or penalties. The apparel market is fast-moving and competitive, but understanding and following these regulations ensures that your brand maintains credibility, avoids costly errors, and remains competitive in Canada’s marketplace.
————————
Meta Title: Apparel Imports to Canada: Duty Rates & Labelling Rules
Meta Description: Learn about Canadian duty rates and apparel labelling rules. Ensure compliance on HS codes, origin, fibre content & bilingual labels for fashion imports.
Slug: apparel-fashion-imports-duty-rates-labelling-canada
Focus Keyword: Apparel imports Canada duty rates and labelling rules
Alt Title (for featured image): Apparel & Fashion Imports in Canada – Duty Rates and Labelling Compliance
———————-
MDF skirting board covers are clever little additions made from medium-density fibreboard that slot over…
Welcome to Uganda’s Wild Heart Uganda is wild. Green. Big. Full of life. You step…
Introduction: A New Era of Natural Rejuvenation in Argyle, TX In today’s world of aesthetic…
In the rush of business, you need to pitch your idea fast. Investors wait for…
The therapy of sleep apnea that is suggested as the first line is continuous positive…
Individuals who have sleep apnea have frequent breathing lapses during sleep. Having such breathing lapses can result…
This website uses cookies.