How to Become a Non-Resident Importer in Canada: A Complete Guide
If you are a foreign business looking to sell your products in Canada, you might have heard of the term non-resident importer (NRI). But what does it mean and how can you benefit from it? In this article, we will explain everything you need to know about becoming an NRI in Canada, including the advantages, requirements, and steps involved.
What is a Non-Resident Importer?
A non-resident importer is a foreign business that imports goods into Canada and assumes the responsibilities and liabilities of an importer of record. This means that the NRI is responsible for paying the duties, taxes, and fees associated with the importation, as well as complying with the Canadian customs regulations and other applicable laws.
By becoming an NRI, you can have more control over your supply chain and offer better service to your Canadian customers. You can also gain a competitive edge in the Canadian market by:
- Reducing the delivery time and costs for your customers
- Offering landed cost pricing, which means that your customers pay a fixed price that includes all the import charges
- Simplifying the customs clearance process for your customers
- Avoiding potential delays or errors caused by third-party brokers or agents
- Enhancing your brand image and reputation in Canada
How to Become a Non-Resident Importer in Canada?
To become an NRI in Canada, you need to follow these steps:
Obtain a Business Number (BN) from the Canada Revenue Agency (CRA)
A BN is a unique identifier that you need to conduct business with the Canadian government. You can apply for a BN online, by phone, or by mail.
Register for an Import/Export Account with the CRA
This is a sub-account under your BN that allows you to report and pay your import duties and taxes. You can register for an Import/Export Account online, by phone, or by mail.
Obtain a Canadian Customs Bond (CCB) from a licensed customs broker or surety company
A CCB is a guarantee that you will pay your import duties and taxes and comply with the Canadian customs regulations. The amount of the CCB depends on the value and frequency of your imports. You can also choose to pay cash security instead of obtaining a CCB, but this may cause delays in your shipments.
Choose a mode of transportation and a carrier for your shipments
You can ship your goods by air, sea, rail, or road. You need to select a carrier that can provide you with proof of delivery and tracking information for your shipments.
Prepare the required documents for your shipments
You need to provide accurate and complete information about your goods, such as the description, quantity, value, origin, tariff classification, and harmonized system (HS) code. You also need to provide an invoice, a bill of lading, a certificate of origin (if applicable), and any other documents required by the Canadian authorities or your customers.
Submit your customs declaration and pay your import duties and taxes
You can submit your customs declaration electronically through the Customs Automated Data Exchange (CADEX) system or through a customs broker. You need to pay your import duties and taxes within five business days after the release of your goods. You can pay online through the CRA’s My Payment service or through a financial institution.
By following these steps, you can become an NRI in Canada and enjoy the benefits of importing directly into the Canadian market.
Non-Resident Importers in Canada: A Growing Trend
Canada is a large and attractive market for U.S. exporters, with a population of nearly 38 million people and a GDP of over $1.7 trillion. However, selling to Canada can also pose some challenges, such as dealing with customs clearance, duties, taxes, and currency exchange. One way to overcome these barriers and gain a competitive edge in the Canadian market is to become a non-resident importer (NRI).
What is a Non-Resident Importer?
A non-resident importer (NRI) is a company or individual who does not reside in Canada, but elects to act as the Importer of Record (IOR) for shipments imported into Canada . The IOR is responsible for all accounting related to the importation, including paying any duties and taxes to the Canadian government and keeping records of each transaction. By becoming an NRI, a U.S. exporter can take control of the shipping process from door to door, simplify pricing for their Canadian customers, and improve customer service and satisfaction.
What are the Benefits of Becoming a Non-Resident Importer?
There are many benefits for U.S. exporters who register as NRIs in Canada. Some of them are:
Simplified pricing
By including transportation costs, customs clearance fees, duties, and taxes in the selling price of the goods, the U.S. company creates price certainty for their Canadian customers. This eliminates any surprise fees or charges once the goods cross the border. The U.S. company can also charge their customers in Canadian dollars, making the transaction more convenient and transparent.
Eased trade process
By acting as both the exporter and the importer, the U.S. company reduces the workload and risk for their Canadian customers, who do not have to be involved in the import process or deal with customs brokers or agents. This makes doing business as easy as buying from a Canadian company.
Increased competitive advantage
By consolidating shipments, the U.S. company can clear the goods in their own name as one clearance and reduce the cost of shipping, creating significant savings that can be passed on to their Canadian customers or used to offer lower prices than their competitors.
Improved shipment control
By taking charge of the shipping process from start to finish, the U.S. company minimizes customs delays and has the ability to track the movement of the shipment at any time. This ensures timely delivery and reduces the risk of loss or damage.
Expanded market reach
Through the improvements in customer service and satisfaction generated by the NRI program, U.S. companies can increase their market share in Canada and compete more effectively with local or other foreign suppliers.
How to Become a Non-Resident Importer?
The best way to register as an NRI in Canada is through a customs broker, who can offer many services that will assist a U.S. company as they begin exporting to Canada. A broker will:
- Ensure that the U.S. company is compliant as an exporter to Canada, meeting all legal and regulatory requirements
- Obtain a Business Number (BN) from the Canada Revenue Agency (CRA), which is needed to import goods into Canada
- File customs declarations and pay duties and taxes on behalf of the U.S. company
- Provide advice on tariff classification, valuation, origin, marking, labeling, and other import-related issues
- Handle any disputes or audits with the Canada Border Services Agency (CBSA) or other authorities
- Keep records of all import transactions for at least six years
To authorize a customs broker to act as their agent, the U.S. company needs to provide a written authority such as an Agency Agreement or a Power of Attorney (POA). The POA should specify the scope and duration of the authorization, as well as any limitations or conditions.
References:
https://en.wikipedia.org/wiki/Special:BookSources/0-19-568909-7
https://en.wikipedia.org/wiki/Arthur_O%27Sullivan_(economist)
https://www.edumaritime.net/icc-academy/export-import-certificate-eic-online
https://en.wikipedia.org/wiki/Special:BookSources/0-13-063085-3
http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Economic_territory
https://en.wikipedia.org/wiki/Oxford_University_Press
https://www.trade.gov/canada-non-resident-importer-program
https://www.pcb.ca/services/nri
https://www.tradecommissioner.gc.ca/canadexport/0003320.aspx?lang=eng
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