Everything You Need to Know About Canada’s Non-Resident Importer Program

What is a Non-Resident Importer (NRI)?

A Non-Resident Importer (NRI) is a business or individual located outside of Canada that ships goods to customers within Canada while assuming responsibility for customs clearance and import requirements.

This arrangement allows businesses to sell and compete in the Canadian market without the need for local infrastructure such as warehouses, factories, or sales offices. NRIs manage the transportation of goods from their location to the Canadian customer and cover all import-related costs, including duties, taxes, and fees associated with customs brokerage and logistics services.

By managing the entire delivery process, an NRI provides Canadian customers with a convenient and cost-effective shopping experience, enhancing their competitiveness in the market.

“The success of an NRI program solely relies on the collaboration between you, your customs broker, and the relevant government agencies. Each one plays an important role in ensuring the process runs smoothly.”

When goods cross the border, both exporters and importers have specific responsibilities. Importers must pay duties and taxes and comply with Canadian customs regulations. On the other hand, exporters take care of shipping, classify the goods, and ascertain their origin. In many cases, the importer is simply the customer purchasing goods from the vendor who is the exporter. When these tasks are split between two parties, the process can become more complicated. That’s where NRIs come in.

Non-Resident Importers make it easier because they manage everything, from shipping goods across the border to delivering them to the customer. As the Importer of Record (IOR), they handle duties, taxes, and compliance. Companies with a presence inside and outside Canada can do this easily; for companies outside Canada, becoming an NRI is one of the most efficient ways to access the Canadian marketplace.

What are the Benefits of Becoming an NRI?

The benefits of becoming an NRI for a business looking to venture into the Canadian market include:

Lower Costs

You will not need a physical presence in Canada and, therefore, will not have any infrastructure, staffing, warehousing, or distribution costs. Since you control both the export and import functions, you can better anticipate and manage the costs associated with shipping and imports. In addition, consolidating shipments contributes to savings.

The CBSA Assessment and Revenue Management (CARM) initiative aims to modernise how duties and taxes are collected and potentially save some administrative costs for NRIs.

Supply Chain Control

Since you act as both exporter and importer, you maintain control over the whole shipment process, which gives you better control over the movement of goods and potential bottlenecks that might arise. That means greater control over the import processes, fewer delays at the border, and improved on-time delivery to customers.

The CARM Release enables NRIs to utilize new tools to submit electronic commercial accounting declarations and to post and track security under the Release Before Payment (RPP) program, improving supply chain management.

Customer Accessibility 

NRIs provide direct-to-customer delivery in Canada without any administrative costs or additional hidden fees associated with international purchases. As the Importer of Record, you can sell on a Delivered Duty Paid (DDP) basis, ensuring customers pay only the final price without hidden fees.

Under the Safe Food for Canadians Regulations (SFCR), NRIs must have a Safe Food for Canadians (SFC) license to import the listed food products into Canada. Being compliant with these regulations further adds accessibility and confidence among Canadian customers. 

Compete Better in the Canadian Marketplace

By reducing operational costs and simplifying the purchase process for Canadian consumers, NRIs can strengthen their competitive position, enhance sales, and expand market share. Transactions will resemble domestic purchases, making it seem like a more seamless buying experience for Canadian customers.

The CBSA’s CARM initiative leads to harmonized billing cycles and electronic management of appeals and compliance actions, simplifying operations and increasing competitiveness for NRIs in the Canadian market.

Step-by-Step Guide to Importing as a Non-Resident Importer (NRI) in Canada

Importing as an NRI can provide access to the Canadian market, but it requires careful planning and execution. Here’s a straightforward guide to help you navigate the process while steering clear of common mistakes.

Step 1: Research and Plan Your Import

Begin by gaining a solid understanding of the Canadian market. Are your products in demand? Investigate competitors, pricing, and customer preferences to assess the potential success of your goods. Get familiar with Canada’s import duties, taxes, and trade agreements. For instance, agreements like the Canada-United States-Mexico Agreement (CUSMA) might lower or eliminate duties for specific items. This step is all about preparation—being aware of the costs and regulations from the start will save you time and money in the long run.

Step 2: Organize Cargo and Logistics

Work with a reliable freight forwarder or shipping company to calculate shipping costs, arrange insurance, and ensure smooth transit. Opt for partners who have experience with Canadian imports to avoid issues like improper packaging or shipment delays. Discuss timelines and potential contingencies—this way, you’ll be ready for any unexpected delays or seasonal bottlenecks.

Step 3: Prepare Essential Documents

Documentation is crucial in the importing process. Carefully review everything, from commercial invoices and packing lists to certificates of origin and cargo control documents. Customs officials require detailed and accurate information about your shipment. For example, if you’re importing textiles, make sure to include fabric details and the country of origin. Incomplete or incorrect documentation can result in penalties or delays, so paying attention to detail is essential.

Step 4: Calculate Duties and Taxes

It’s important to understand all the costs associated with importing goods into Canada. Duties, the Goods and Services Tax (GST), and any applicable Provincial Sales Tax (PST) can vary depending on the product’s declared value. To get an accurate estimate of these costs, consider using online duty calculators or consulting a customs broker. Knowing your fees in advance can help avoid overpaying or encountering unexpected charges. 

Step 5: Customs Clearance

Customs clearance is the last step before your goods arrive in Canada. Ensure all your documents are submitted, and duties and taxes have been paid. Customs may clear your goods before they arrive (pre-clearance) or after they reach Canada. A customs broker can expedite this process, especially if there are any questions or additional requirements. Be prepared to provide clarification if customs requests it.

Step 6: Finalize Delivery

After clearing your goods, arrange for delivery to the final destination. Collaborate with local couriers or logistics partners to guarantee safe and timely delivery. Inspect your shipment to ensure everything is in order and accounted for when it arrives. Maintaining good communication with your shipping and delivery team will help ensure a smooth conclusion to the importing process.

Collaborate with Experts 

Managing customs clearance and import logistics can be daunting, but you don’t have to do it alone. You can ensure a smooth process by teaming up with skilled customs brokers and logistics professionals. Clearit.ca is dedicated to assisting businesses like yours in simplifying the importing journey, from handling paperwork to efficiently clearing customs. With their knowledge, you can avoid expensive mistakes and concentrate on expanding your business.

Visit Clearit.ca today to simplify your importing process!