Product of Canada vs Made in Canada: Cost Content Calculator
For most non-food goods, Product of Canada needs at least 98 percent of total direct costs incurred in Canada, while Made in Canada needs at least 51 percent plus a qualifying statement such as 'Made in Canada with imported parts'. Both also require the last substantial transformation of the product to happen in Canada. This calculator tests your cost split against both.
Your numbers
Raw materials and components with Canadian cost content.
Imported materials and components, including duty if you cost them that way.
Any outsourced operations performed abroad.
For example tooling consumed, direct energy, subcontract work done in Canada.
Your results
General guidance based on the Competition Bureau's published approach to Made in Canada and Product of Canada claims for non-food goods. Food claims follow separate CFIA rules. This is not legal advice: confirm your cost definitions and claim wording with counsel before labeling.
Canadian content as imported materials change
Sweeps Direct materials imported from 0 to 120000, holding your other inputs fixed.
Check origin content across your product range
Optional: we can review how to compute Canadian content for every item from your ERP costing data.
Optional. The tool and every export work without this. No spam.
How to use the calculator
Take the bill of materials and routing for one batch or one unit, and split every direct cost into Canadian and foreign. Direct materials, direct labor and other costs directly tied to production count. Enter each pair of values, say whether the last substantial transformation happens in Canada, and read the two pass/fail outputs and the Canadian content percentage. The chart shows how quickly Canadian content falls as imported materials rise.
The rules behind each claim
The Competition Bureau treats these as representations about origin that must not be false or misleading. The thresholds below are the Bureau's published guidance for non-food products.
- Product of Canada: at least 98 percent of total direct costs of producing or manufacturing the good incurred in Canada, and the last substantial transformation in Canada.
- Made in Canada: at least 51 percent of total direct costs incurred in Canada, last substantial transformation in Canada, and a qualifying statement such as 'Made in Canada with imported parts' or 'with domestic and imported parts'.
- Made in Canada without a qualifier is only appropriate where the content is virtually all Canadian, which the Bureau treats as the Product of Canada standard.
- Verbs such as produced in or prepared in Canada are origin claims too, and are judged against the same expectations.
Worked example
With the default values, Canadian direct cost is 42,000 plus 24,000 plus 6,000, which is 72,000 out of 107,500, or about 67 percent. The product clears the 51 percent test and the last transformation is in Canada, so a qualified Made in Canada claim is supportable. It is far from 98 percent: Product of Canada would need roughly 33,000 more cost moved into Canada, shown in the last output. Overhead, marketing, profit and freight are not direct costs, so they do not move the percentage.
Common mistakes and food products
The usual errors are using total selling price instead of direct cost, counting overhead as Canadian content, forgetting that an imported subassembly carries foreign labor, and omitting the qualifying statement. Keep the costing file that supports the claim, since you may need to show it. Food products follow Canadian Food Inspection Agency rules, where Product of Canada generally means all or virtually all the food, ingredients, processing and labor are Canadian, so do not use this calculator for food.
Frequently Asked Questions
What is the difference between Product of Canada and Made in Canada?
Product of Canada is the stricter claim: at least 98 percent of direct production costs must be Canadian. Made in Canada needs at least 51 percent plus a qualifying statement about imported content. Both need the last substantial transformation to occur in Canada.
Can I say Made in Canada if my product has imported parts?
Yes, if at least 51 percent of total direct costs are Canadian, the last substantial transformation is in Canada, and the label carries a qualifier such as 'Made in Canada with imported parts'. Below 51 percent, the claim is generally not supportable.
Are overhead and profit included in the percentage?
No. The test looks at direct costs of producing or manufacturing the good, mainly materials and direct labor. Marketing, administration, profit and similar indirect amounts are generally outside it. Check your own definitions with counsel for borderline items.
Do the same rules apply to food?
No. Food is covered by Canadian Food Inspection Agency guidance. Product of Canada for food generally requires that all or virtually all of the food, processing and labor be Canadian, and Made in Canada food claims need a statement about domestic and imported ingredients.
If your BOM and routing costs sit in an ERP, we can build a private tool that pulls Canadian and foreign content per item straight from it and flags products whose claim is at risk.
Related Tools
Made in USA Claim Compliance Checklist
Check whether an unqualified Made in USA label is supportable, and how to write a qualified claim when it is not.
Discrete ManufacturingManufacturing MIS Report Template
Fill in one monthly MIS report for a manufacturing company: production, quality, delivery, inventory and cost, with the ERP source of each number.
Discrete ManufacturingSheet Metal Part Cost Estimator
Estimate the cost and quote price of a laser cut and bent sheet metal part from blank size, material, cutting, bending, finishing and margin.
More Compliance & Contracts tools
See all- Canada Contract Manufacturing Agreement Template
- SAP SoD Residual Risk Score Calculator
- SAP Firefighter ID Usage Review Log
- IBM i (AS/400) User Profile Access Review Worksheet
- SyteLine Security and User Access Audit Checklist
- Infor XA (MAPICS) User Access Review Worksheet
- China ERP Data Security and Compliance Assessment
- ERP Vendor Data Processing Agreement Outline
- GDPR ERP Data Migration Checklist
Keep exploring
Free tools
- Canada Contract Manufacturing Agreement TemplateFill in the parties, product, pricing and terms to generate a balanced contract manufacturing agreement outline for Canada, ready to export and review with counsel.
- Free NDA Template for Canada and South AfricaFill in the parties, pick a Canadian province or South Africa, and export a mutual non-disclosure agreement covering drawings, RFQs, CAD models and ERP data.
- Made in USA Claim Compliance ChecklistCheck whether an unqualified Made in USA label is supportable, and how to write a qualified claim when it is not.
Runs with your ERP
- Vertex Cloud with SAP Business ByDesign: embedded indirect taxHow Vertex Cloud works inside SAP Business ByDesign: embedded US and Canada indirect tax, activation through scoping, data flows, pitfalls and AI review.
- Paymate Clarity / Harmony Payroll and SAP Business OneHow Paymate Clarity and Harmony payroll connects to SAP Business One (and S/4HANA) for US and Canadian payroll, GL and job-cost postings, with setup, pitfalls.
AI on your ERP
- AI for ERP in Canada: Controlled Goods, PIPEDA, and On-Prem DesignAI for SAP, Oracle, and Infor ERPs in Canadian aerospace and defense manufacturing: Controlled Goods Program, PIPEDA and Quebec Law 25, and on-prem AI design.
- AI for Infor LN Warehousing: Inventory, Inbound and Outbound Exceptions Made SearchableAI for Infor LN Warehousing: trace inventory discrepancies and inbound or outbound exceptions in plain language. On-prem option, approval on writes.
Manufacturing hubs
- Canadian Manufacturers and Exporters (CME): sectors, rules and ERP realitiesCanadian Manufacturers and Exporters (CME) and the Canadian manufacturing base: sectors, CUSMA, Controlled Goods rules, plus ERP, quoting and private AI issues.
- Manufacturing in Winnipeg, Manitoba: aerospace, buses and agricultural equipmentWinnipeg manufacturing guide: aerospace, transit buses, agricultural equipment, AS9100 and Controlled Goods rules, and ERP and quoting problems shops face.