With the weak U.S. economy (and the global economy as a whole) dominating the news and much of our thoughts these days, companies are anxious to find different ways to cut costs while still looking to grow their sales and revenues.
Creating or growing an export initiative to Canada right now can be one of the easiest ways to achieve great results.
With the U.S. dollar so low compared to the Canadian dollar, and hovering around the 95 cent mark, Canadians are once again cross border shopping and ordering online at an increasing pace.
Canadians can see that they now enjoy on average a 20% discount to buy quality American products than they could have had three years ago.
How can U.S. companies tap into the Canadian consumer and business market?
Expand your market and export to Canada or, better yet, find out how to do it better than your competition.
“The secret of business, especially these days, is to focus relentlessly on your unfair advantage — the thing you do that others don”t.”
John Rollwagen, Executive
So what can be the “unfair advantage”?
One suggestion is to look at the Non-Resident Importer option for Canada and how it may benefit your export growth strategy.
What is a Non-Resident Importer (NRI)?
An NRI is simply a company that is considered the Importer of Record for shipments going into Canada, even though the company does not have a physical location in Canada. The NRI controls the Customs clearance process and the costs associated with getting their products into Canada in a timely and cost effective way.
Products are sold with an all-inclusive delivered price. The customer orders and pays for the product and waits for it to be delivered. No border hassles, no waiting for the courier company to arrive and want to collect extra charges. Ordered, paid, and delivered. That”s it.
The NRI option can provide that “unfair advantage” over other U.S. competitors who simply just export the product and never think about what happens when the goods cross the border and delivery attempt is made. Think about how your client service team can actually get a thank you and compliments instead of complaints about unexpected duty or taxes and other related Customs clearance fees.
There are more opportunities and benefits that can be realized by becoming a Non Resident Importer, many specific to what you”re currently doing or want to do in the future.
We will continue to explore this exciting option for your sales to Canada and all the considerations you should know before your begin.
For more information, either leave a comment below or contact our Non-Resident Importer Analyst at 888.538.1566!
Tags: importing
I’m interested in the rquirements to become a NRI allowing me to ship wine into Canada.
Hello Michael, and thank you for your question.
Wine & alcohol imports into Canada are treated a little differently and every province has different ways of regulating them. In BC, the BC Liquor Board acts as the Importer of record and works with Canadian wine agents. The wine agent must be located in Canada, so unfortunately you would not be able to act as an NRI for the wine, although if you have any Point of Sale (POS) material you ship, then you could definitely become a Non-Resident Importer for those sales or samples.
If you would like the name of a wine agent I have known with for many years, please let me know and I can pass along your email.
I hope this helps, and please let me know if you have any other questions!
I am a Canadian who is part owner of a US based business that exports to Canada. We have no physical business presence in Canada, but I do live here. How would an NRI work for us?
Thanks, Rob
Great question, Thank you Rob!
The US based company is still able to act as an NRI for your sales to Canada, and sell on a delivered price basis, however for GST/HST tax considerations, I would suggest you refer to the publication “Doing Business in Canada – GST/HST Information for Non-Residents”.
This can be found on the Canada Revenue Agency(CRA) website.
I would also suggest that you speak with a Canadian Tax Accountant that is
familiar dealing with Non-Resident Importers, so that an informed decision can be made on whether the company must register or should voluntarily register for a GST account. We can provide you with a referral.
The value that is declared to CBSA when the goods are imported should be the price paid or payable by the Canadian purchaser.
Please contact us directly if you would like to further explore this option for the company or have any other questions.
We are based in Canada and want to ship directly from India to USA. Will NRI be eligible?
Thanks.
780 932 3226
Yes, a Canadian Business can also be an NRI for their shipments into the USA. Although US Customs works a little differently and has different regulations and requirements, you may ship direct from India and take advantage of the First sale rule that applies for US Imports. If you would like to proceed with this, please contact Pacific Customs Brokers USA Trade Compliance Group and they can work with you and answer any questions. You can call or email them directly at tcg@pcbusa.com.
Thank you!
See also, Be Prepared Before You Ship