International vendors of equipment and services are allowed in CFIN projects, however as an organization focused on fostering Canadian innovation, we have some limits on our ability to cover large amounts of foreign expenses. Our applicants are asked to identify foreign suppliers in their budgets and can also refer to the program guide definitions of what constitutes foreign expenses, which are detailed below.
Direct Labour: As a rule, foreign costs related to direct labour are those costs incurred for work performed outside of Canada. For more clarity, the following examples are provided
If an employee is employed at a Canadian location and is paid in Canadian dollars, those are considered costs incurred in Canada.
If a Canadian employee of a Canadian company or its wholly owned subsidiary works abroad to complete Project activities, we also consider this a cost incurred inside of Canada.
If a foreign employee of a Canadian company or its wholly owned subsidiary does work on Project activities outside of Canada, we consider this to be foreign costs.
Direct Materials Purchased outside of Canada: For direct material costs to be considered incurred within Canada, they must be utilized or consumed within Canada for the purpose of the Project activities, whether they were purchased in Canada or outside of Canada. Any other type of Direct Material which is not utilized or consumed within Canada for Project activities, shall be considered a foreign cost.
Sub-contractor: For subcontractor and consultant costs to be considered a cost occurring inside of Canada, the subcontractor or consultant must be performing the work inside of Canada. For more clarity, costs incurred for work performed by a foreign affiliate is considered a foreign cost.
Other Direct Costs: For costs to be considered incurred within Canada, they must be utilized or consumed within Canada. Any other type of Other Direct Cost which is not utilized or consumed within Canada for Project activities shall be considered a foreign cost. It is important to note, all travel abroad and conferences by Recipient employees or Canadian wholly owned subsidiary employees for the purposes of Project activities are not considered to be foreign costs, so long as they are permitted under the approved budget.
Equipment: Equipment purchased within Canada from Canadian suppliers are considered a cost incurred in Canada. Also, if a piece of equipment is purchased from a foreign supplier, of which there is no comparable from a supplier within Canada and the equipment is imported to a Canadian location, then this may also be considered a cost incurred in Canada. Equipment purchased outside of Canada and consumed outside of Canada shall be considered a foreign cost. Also, for costs of retrofitting existing Canadian or foreign supplied equipment by a company abroad shall be considered a foreign cost