CUSMA compliant question?

[rdemaree]

So I mostly sell handmade art supplies in my shop but I also sell some of the raw materials that I use to make those art supplies. I am confused if my raw materials would qualiy for CUSMA.

I will give a few examples.

-Most of the dry color pigments that I use to make my paints come from China in large 20kg bags. I sell this raw materials broken down into 4 oz. small plastic jars that are made in the usa and then I afix a label that I make here in Canada. 

I am curious if this would count for CUSMA? The jar and label are north american and the product inside is broken down from a larger quantity of the product (transformation?) which is from China. The labor of putting the material in the jar and making and affixing the label is done by me (in Canada).

Would this count for CUSMA?

Another question is if I am selling a set of half oz. small jars which is custom curated on which dry color pigments I include in it, does this warrant it more as a unique product in which would qualify for CUSMA since I am curating the set of colors? (same material situation as above btw) 

Another example I have which I practically KNOW wouldnt qualify for CUSMA is that I sell empty metal tubes that I use to store my handmade paint but those tubes are from China. For that raw material I literally do nothing other than pull 10 out of my pile of 1000's and put it in a box for a customer. No transformation really takes place other than taking 10 out of 3000 tubes and no North American products are used in that product. 

Any info would be greatly appreciated.

Thanks

-Ryan

[rdemaree]

Crickets chirping… anybody?

[phc64]

Unfortunately, the CUSMA- compliant exemption does not apply to postal shipments. I don't know about courier shipments.

[byto253]

If I read your post correctly, you are basically buying in bulk from China then using those pigments to produce paints.   It really depends on how transformitive the work you are doing is.  

Would it be more considered just breaking down the bulk supplies into smaller containers for resale, perhaps with water added to make paint.  Or is there more to making the paint that substantially increases the value and it is substantively transformed in Canada thefore it is "Made in Canada".. 

For example someone silk screening a picture on a made in China t-shirt cannot claim made in Canada.  Someone taking raw fibers and weaving it into a garment can likely claim made in Canada. 

That is a tricky question that I certainly do not have the knowledge to know where your product lies on that scale.  

[mrdutch1001]

" Someone taking raw fibers and weaving it into a garment can likely claim made in Canada. "...

that depends on % breakdown for country(countries) of origin of the fibres...IF ALL fibres are sourced from Canada such as wool from Canadian sheep, spun into wool by a Canadian,  that would most likely qualify 100% as "made in Canada"

[rdemaree]

I mix the pigments to replicate historical colors without the cost/ toxicity/ or lightfastness issues etc of those historical colors. My recipes are custom and 100% my own. The materials to make them mostly come from China but the linseed and walnut oil comes from Canada and all the labor is in Canada and the labels design and recipe etc all Canadian.

I KNOW my handmade oil paints are CUSMA approved. My chitchats broker just approved them.

What I’m more curious about is my raw materials. I figure since I’m buying in bulk I can get extra value off them by selling the raw materials as well.

Still confused if it would work or not.

[byto253]

Congratulations on the CUSMA certification.  I took a look at your listings and paints, they look wonderful and they have been sent them off to the artistic side of the family to check out.  I made art teacher's cry in school but did grow up around some folks with talent!  

I would think if you are just selling the pigment from China, even in US jars and a Canada label, it would not be CUSMA compliant as the value is in the pigment. 

[rehautala]

This doesn't make sense. Aren't most CUSMA products shipped in some form? 

[rdemaree]

Much appreciated! 

I am based in Toronto btw. If they ever need any paint, tell them to message me. I do custom listings etc. 

[ypdc_dennis]

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@rehautala wrote:

This doesn't make sense. Aren't most CUSMA products shipped in some form? 

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CUSMA products sent by post office are not exempt from Trump's tarriffs (thats how his minions set it up). If the CUSMA product is sent by courier from Canada they are exempted from the current 35% tarrif -- but other Trump tarriffs may be still be applied depending on category.

[rdemaree]

Yeah I just found that out.

This basically means unless you’re selling CUSMA products using a cross shipper like chit chats or stallion your business is doomed when it comes to selling to the USA. Because using ups and fedex even for CUSMA stuff you might as well be paying tariffs due to the higher cost associated.