“Made in Canada with imported parts”: what qualifies

Can a product be “Made in Canada” if it has imported parts?

Yes. The Competition Bureau's guidelines allow “Made in Canada with imported parts” (or similar wording) when at least 51% of the total direct costs of producing the good were incurred in Canada, the last substantial transformation happened in Canada, and the label carries that qualifying statement. Below 51%, a narrower description is expected instead.

Last updated: September 18, 2026

What the qualifier is for

A bare “Made in Canada” claim implies the same 51% direct-cost threshold whether or not it says so. The qualifier — “with imported parts”, “with domestic and imported parts”, or a specific figure like “with 60% Canadian content” — tells the buyer some inputs came from outside Canada without misleading them about how much.

What counts toward the 51%

Direct costs are the materials that go into the product and the labour reasonably allocated to making it. General overhead usually does not count unless it is directly tied to production and can be reasonably allocated to it. Imported raw materials or components are simply excluded from the Canadian side of that calculation.

If the Canadian share is below 51%

The Competition Bureau recommends a more specific, accurate description of what actually happened in Canada instead — for example “Assembled in Canada with foreign parts” or “Finished in Canada from imported components”. See what “Made in Canada” means for the full three-condition test, and “Product of Canada” vs “Made in Canada” for the stricter 98% claim.

Where this fits with a Checked Canadian review

A check reviews one product line's direct-cost breakdown and its Canadian share against these same thresholds, and publishes the result with a date. It does not certify the claim or replace the manufacturer's own legal judgment about its wording. How a check works.

Common questions

Is a specific percentage, like “Made in Canada with 60% Canadian content”, allowed?

Yes. The Competition Bureau's guidance accepts a qualifier that states a more specific figure, as long as it is accurate.

Does the 51% test apply to food?

No. Food origin claims follow separate Canadian Food Inspection Agency guidelines that are based on ingredients, processing and labour rather than a cost percentage.