Your in Canada, so start with your local Trade & Standards office for your territory then check with the Canadian Ferderal Legislation for any addition requirements (the local T&S clerk may be able to help you). Some locations in Cananda require you to obtain a license and go through an inspection to be able to make stuffed animals, soft sculptures, or art dolls. The CPSIA will apply to items that you send to the USA, but you first have to satisfy all of your own countries local and federal laws concerning your products.
So if you decide to sell to customers in the the USA I'm sorry to tell ther are no simple answers to the CPSIA, if your going to make any items for children under 13 then you need to either understand the laws & regulations yourself or hire a legal professional to interpet it for you. There is a comprehesive list of exempt from lead testing raw materials and components for the CPSIA that is fairly easy to understand,
http://www.cpsc.gov/businfo/frnotices/fr09/leaddeterminationsfinalrule-draft.pdf . But even if everthing you make is made entirely of these exempt materials there are other tests, regulations, and paperwork that needs to be done that still must be followed. Tests like small parts, durability, and phthalates will depend on the age the item is being described for. Regulations like what types of stuffing materials can be used and other agency's like the FTC require for labeling beyond the CPSIA's traking label. Then of course there is the paperwork to keep track of the raw materials that went into the item, what tests where preformed and if that test was on just a component or the whole completed item, what lab did each of the testings, when each piece was completed, whom the item was sold to, and the GCC to link them all together plus any additional paperwork the Canadian post requires for shipping outside of Canada.
Some of the Canadian laws may overlap what needs to be done but for the CPSIA but there may enough differences in the Canadian regulations that those test or labels may not be enough to satisfy certain parts of the US's CPSIA. Under the CPSIA the responsibility of complying with the law falls on the importer (the US based customer), but to be able to get the item through USA Customs to that customer the item needs to have all the correct paperwork and certifications for the CPSIA already in place.
