The Non-Resident Importer (NRI) Program, established by the Canada Border Services Agency (CBSA), is designed to simplify cross-border trade for global businesses selling to Canadian consumers, retailers, and companies. By making international transactions appear as domestic purchases, the NRI program enhances the buying experience for Canadian customers while helping foreign businesses expand their market presence and boost exports to Canada.
What Is a Non-Resident Importer (NRI)?
A Non-Resident Importer (NRI) is a business based outside Canada that ships goods to Canadian customers while assuming full responsibility for customs clearance and import-related compliance. Under this program, global companies can sell products on a delivered-price basis, incorporating shipping costs, duties, taxes, and customs fees into the final price. This approach ensures that Canadian customers experience a seamless purchasing process, often with pricing in Canadian dollars (CAD), eliminating unexpected fees upon delivery.
Benefits of the NRI Program for Global Businesses
1. Transparent and Predictable Pricing
- By bundling transportation, duties, taxes, and customs fees into the final price, businesses provide Canadian customers with cost certainty, avoiding unexpected charges at delivery.
- This pricing model improves customer satisfaction and encourages repeat purchases.
2. Streamlined Trade and Customs Process
- Acting as both exporter and importer of record, the company eliminates the burden of customs compliance for Canadian customers.
- The transaction feels like a domestic purchase, reducing friction and increasing sales conversion rates.
3. Competitive Advantage and Cost Efficiency
- Consolidating shipments allows businesses to clear goods under a single customs entry, reducing per-unit shipping costs.
- These savings can be passed on to customers, making pricing more competitive against local Canadian businesses.
4. Greater Control Over Shipments
- Managing end-to-end logistics ensures faster customs clearance, real-time tracking, and reduced delivery delays.
- This level of control leads to a more reliable and consistent customer experience.
5. Market Expansion and Revenue Growth
- A simplified buying process and transparent pricing encourage more Canadian customers to purchase from international brands.
- By removing trade barriers, businesses can tap into Canada’s growing market and scale their operations.
How to Register as a Non-Resident Importer
The most efficient way to register as an NRI is by working with a licensed customs broker, who can assist in:
- Ensuring compliance with Canadian import regulations.
- Maximizing trade agreement benefits (e.g., USMCA – United States-Mexico-Canada Agreement).
- Developing accurate pricing strategies that include duties, taxes, and logistics fees.
- Simplifying customs documentation requirements.
- Establishing a Canadian Business Number (BN) and completing the Agreement for Maintaining Books and Records Outside of Canada.
There is no direct fee to enroll in the NRI program, but customs brokers may charge a service fee for setup assistance.
Key Considerations for Non-Resident Importers
1. Canadian Taxes
- Most imported goods are subject to a 5% Goods and Services Tax (GST).
- Businesses with annual Canadian sales exceeding CAD $30,000 must register for GST with the Canada Revenue Agency (CRA) and may be required to post a bond.
- Tax regulations vary by province, as some impose additional Provincial Sales Tax (PST) or Harmonized Sales Tax (HST). Consulting a tax professional is recommended.
2. Duties and Tariffs
- Duties are calculated based on the Harmonized System (HS Code) and the product’s country of origin.
- Businesses can request binding tariff classifications from CBSA to ensure correct duty assessments.
3. Customs Documentation
- Shipments valued at over CAD $3,300 require a Canada Customs Invoice (CCI).
- Lower-value shipments can use a commercial invoice, provided it contains all the required details.
4. Canadian Business Number (BN) and Compliance
- Obtaining a Business Number (BN) is a mandatory first step for NRIs.
- Once registered with CRA, businesses will have ongoing reporting obligations, even if no sales occur.
- Consulting a Canadian tax advisor is highly recommended before proceeding.
Final Thoughts
By leveraging the Non-Resident Importer (NRI) Program, global businesses can streamline cross-border trade, simplify customs processes, and enhance customer satisfaction in the Canadian market. With transparent pricing, efficient logistics, and reduced trade barriers, international companies can unlock significant growth opportunities in Canada and gain a competitive edge in North America.
For more details, visit the CBSA website or refer to CRA resources for tax compliance guidance.