Okay. I just dug through my tarriff schedule, and my isn't THAT fun reading. And my earlier statement, and in fact, my earlier understanding of the tariff was, well, wrong. Apparently as long as the country is in the most favoured nation category, you're pretty well good. You just have to pay tax on the purchase, provided it's labelled properly and all (there are a TON of different categorizations, though, so I'd be very leery of just labelling a package with "fabric.") You do, however, have to pay your provincial tax. Yay HST.
That being said: If you import a completed quilt, even from a most favoured nation or a country with which we have a trade agreement, and it's not under your personal exemption amount, you're stuck with 12-14% import tariff. Awesome.