Quebec Regulatory EN

Case 1. The manufacturer ships and invoices from Ontario, and it does not have representatives in Quebec. Are we covered by the Regulation?

Yes. Since the manufacturer does not have representatives in Quebec to take your orders, you are deemed the first supplier in Quebec, hence the obligation falls on you.

Case 2. The manufacturer ships and invoices from Ontario, but we give our orders to its representatives in Quebec. Are we covered by the Regulation?

No. Since the manufacturer has representatives in Quebec to take your orders, it is deemed the first supplier in Quebec, even if it ships and invoices from outside of Quebec.

Case 3. We are part of a chain of stores. We don’t deal directly with the manufacturer, instead we receive the products from our national distribution centre (DC) in Ontario. Are we covered by the Regulation?

Your national DC in Ontario plays the same role as the manufacturer in Cases 1 and 2 above. If the chain has personnel in Quebec to take your orders, then the chain is the first supplier in Quebec, but if it does not have personnel in Quebec to take your orders, then you are deemed the first supplier in Quebec and the obligation falls on you.

Case 4. We place our orders in Ontario, but the manufacturer ships and invoices us from within Quebec. Does this make any difference?

No, it does not. Wherever the manufacturer ships and invoices from, what matter is whether the manufacturer’s representatives that you deal with for your orders are located in Quebec or outside of Quebec.

Case 5. The manufacturer is based outside of Quebec and we give our orders to its representatives in Quebec, but we own the brand. Does this make any difference?

Yes, it does. Even though you place your orders to the manufacturer’s representatives in Quebec, since you own the brand, the obligation falls on you.

Case 6. We are covered by the Regulation, so we must declare the quantities that we market in Quebec, but are they what we purchase or what we sell?

For the purpose of the Regulation, any product that enters the province is considered as “marketed” in Quebec. Hence you must report the quantities that you purchase, not the quantities that you sell.

Case 7. Our national distribution centre (DC) is located in Quebec. Parts of the products received by our DC from outside of Quebec are forwarded to stores outside of the province. What quantities of the products received by our DC have to be reported?

For the purpose of the Regulation, the quantities forwarded by your DC to your stores outside of Quebec may be deducted from the total quantities received by your DC from outside of Quebec, but the process must be properly documented for audit purposes.