The process of getting your goods from your factory into the Canadian market can be both complex and expensive. However, Transmanna Intl. can help you to take advantage of Canadian Non-Resident Importer (NRI) program to simplify your task of accessing and effectively competing in the Canadian marketplace. You qualify as an NRI if your company is based outside of Canada, if it does not have a permanent presence in Canada, and if it would like to import goods into Canada under its own name. Of course using your own resources to coordinate your imports into Canada can be a tedious process. You need to be aware of the potential regulations governing your product, Canadian standards for proper classification and valuation of your products besides customs clearance, boarder inspections, audits and payment of different taxes and duties etc. Of course, these tasks might be much easier if you had a business physically located in Canada. But as a NRI (Non-Resident Importer), even without spending money on physical presence in Canada, you firm can act as the importer of record for goods sold or consigned into Canada. A Non -Resident Importer (NRI) is an organization located outside of Canada that ships goods to customers in Canada and assumes responsibility for customs clearance and other import related requirements. This program allows the U.S. exporter to include all shipping, customs clearances, duties and taxes in the shipping and handling fees charged to the customer, and may even be charged in Canadian dollars. In this way, the transaction appears to the Canadian consumer as a domestic transaction.
An NRI is subject to Canada’s Customs Act and related regulations, which are administered by the Canada Border Services Agency (CBSA). For your company to act as the Importer Of Record (IOR), you will need to acquire a Business Number (BN) for your business. A Business Number is a unique number assigned to the non-resident importer by the Canada Revenue Agency (CRA) and allows the CRA to identify a business for tax matters relating to business in Canada. At the same time it creates an import program account number that is used for processing customs documents. The general documentation required to import goods into Canada is:
- Vendor and purchaser name and address
- Importer of record
- Full description
- Country of origin
- Quantity (packages and weight)
- Value (Unit price and extension)
- Currency of settlement (U.S. or Canadian dollars)
There are quite a few benefits and advantages for your business to act as an NRI. The program will allow you to:
- A level playing field with Canadian vendors that purchase their goods from domestic suppliers.
- Compete effectively in the Canadian marketplace without incurring the overhead of Canadian facilities.
- Sell to your clients based on landed costs – in your pricing you can include transportation, customs clearance, duties and GST.
- A far greater ability to establish, increase and protect market share.
- Fully control the customs clearance process so that you can ensure there are no delays at the border.
- Enhanced ability to determine and manage the price points for the Canadian marketplace by eliminating unnecessary fees and delays.
- Create new business opportunities with large retailers who prefer not to be ‘Importer of Record’.
- Capitalize on NAFTA for products made in the U.S.A. or Mexico.
- Leverage Canada’s other trade agreements by shipping directly from participating foreign countries into Canada.
Canadian Taxes Almost all goods imported into Canada are subject to the Goods and Services Tax (GST). The 5 percent GST is payable upon importation and is based on the duty paid value of the goods. The following Canadian provinces have harmonized their provincial taxes into Harmonized Sales Tax (HST):
- Ontario, New Brunswick, Newfoundland and Labrador at a rate of 13%
- British Columbia at a rate of 12% • Nova Scotia at a rate of 15%
- Quebec, which has Quebec Sales Tax (QTS) at a rate of 8.5%
All companies, including Non-Resident Importer (NRI) , that are considered to be carrying on business in Canada and have annual sales exceeding CDN$30,000 are required to register for the GST and may have to post a GST bond. After registering for a GST account, the U.S. company must prepare and submit a GST return at selected intervals showing the amount of tax that was collected and remitted to the Canada Revenue Agency. There is no additional requirement for taxes under the NRI program. Some shipments entering Canada may require additional documents such as permits, certificates, licenses, and bills of lading. Certain commodities entering Canada are controlled/restricted for various reasons. Furthermore, depending on the nature of the goods, certain other Government department requirements or certifications may apply.
The following industries are subject to other government departments:
- Food and food-related products;
- Apparel goods, textile articles, steel products
- Animals, plants and certain wood products
- Energy consuming products;
- Pre-packaged consumer products;
- Motor vehicles and tires;
- Drugs, medical devices and hazardous products
What can we do for you ?
A Non-Resident Importer (NRI) may appoint a Canadian company to act as their agent and conduct business with the Canada Border Services Agency (CBSA) on their behalf. The CBSA requires agents to have written authority from the IOR such as an Agency Agreement or Power of Attorney. Note: The IOR is ultimately responsible for all matters regardless if an agent was appointed
Transmanna Intl. can help you take full advantage of the NRI program by following ways:
- Proper valuation, accurate tariff classification and taking advantage of preferential tariff treatment under international, regional or bilateral trade agreement on imported goods. His will help prevent clearance delays, rejections or seizure by customs, or monetary penalties
- Arranging import permits for products under import control. Many goods are subject to special permits, restrictions or Customs regulations? We can work with different governmental departments (e.g., Canadian Food Inspection Agency, Transport Canada, Natural Resources Canada) to get import permits for you.
- The owner or Importer of Record is responsible for paying the GST/HST (Taxes) on imported goods. Failing to collect and remit Canada’s Goods and Services Tax (GST) and Harmonized Sales Tax (HST) to the Canadian government can lead to penalties. Transmanna Intl. can help establish an efficient GST/HST process that meets legal obligations. If you are registered for the GST/HST and you are the importer (the person who caused the goods to be imported into Canada), we can assist you claim an input tax credit (ITC) for the tax you paid on the imported goods, as long as you meet the requirement for claiming ITSs and registering with Canada Revenue Agency.
- Transmanna Intl. can also help you in arranging a better warehousing in Canada. You may prefer to hold inventory in Canada, in a central location like Toronto in Ontario. This will allow quicker delivery to your clients when the orders are actually placed, since customs clearance and border delays will already have been handled when the inventory was first shipped to Canada. We can handle receiving your inventory and soring n the ware house for distribution to your clients.
- Since Transmanna Intl. has different customs brokers and freight forwarders on its panel, it can reduce the manual data entry needed and in some cases may be able to practically automate the clearance process for your shipments to Canada. They will also improve compliance and visibility over the clearance process. We can also help you provide that visibility for tracking all of your shipments all the times.
- All importers are required to have their books and records maintained in Transmanna Intl. can maintain your import records to remain compliant with CBSA standards and save you time and money. After all, compliant documentation keeps your shipments moving across the border smoothly and reduces your risk of penalties and non-compliance fines.