How to Become a Non-Resident ImporterEvery import shipment that crosses the border into Canada has a designated importer.
The Importer of Record (IOR) is the party who is responsible for ensuring that imported goods comply with all customs and legal requirements and that all duties and taxes on the imported goods are paid. The IOR, or their authorized agent, also has to declare the goods to customs. This means that the IOR is also the party who retains the customer broker for a shipment. Usually, the IOR is a customer in Canada who is making a purchase from a foreign vendor. Sometimes, however, a company that is not based in Canada might want to act as the IOR for goods that they themselves are shipping over the border. For example, a US-based company that regularly ships to Canada may want to act as the IOR for all of their shipments so that each of their customers doesn’t have to get their own customs broker and pay import fees, which might deter Canadian customers.
When a non-Canadian business acts as the IOR for an import into Canada, they are known as a Non-Resident Importer (NRI). To become an NRI, you will need to register in advance to collect and remit the Canadian taxes, and you will need a Canadian import-export account.
Here are the steps you can take as a non-Canadian business to become a registered NRI:
1. Gather your information
To register for GST, you will need information about your last fiscal year, including your total revenue. You will also need identifying information for your business, including the legal name, address, a description of your business activities, and your incorporation number. A detailed guide to all of the information you need is available here. You will also need information about the type of products you plan to import. To find out if your products are admissible to Canada and if they are subject to any additional licensing requirements, consult with a Canadian customs broker.
2. Register with the Canada Revenue Agency
You can apply online for a Canadian business number by filling out the online Non-Resident Business Number and Account Registration Web Form. In addition to registering for a business number, you will need to register for two program accounts: “GST/HST (RT)” and “Import/export (RM)”. You will need both of these extensions to import goods into Canada. You can apply for the program extensions through the same online web form.
3. Assemble your team
You will need a Canadian customs broker and a Canadian accountant. Your customs broker will collect the GST when your imports cross the border and bill the tax back to you. Your accountant can then remit the collected tax back to the Canadian government in quarterly GST returns, and claim the cost of the tax back using an Input Tax Credit (ITC).
Once you are registered as an NRI, you can start importing. You will be able to ship to customers in Canada, billing them for Canadian tax, and handle the entire customs and import process behind the scenes without involving your customers. Registering as an NRI makes the import process seamless for your Canadian customers.
Contact King Bros if you would like to find out more about the process of becoming a Non-Resident Importer or import requirements for your products.
By Robin Smith, M.A., CCS.
– Robin is a trade industry professional based in Victoria, BC.
Every import shipment that crosses the border into Canada has a designated importer.
The Importer of Record (IOR) is the party who is responsible for ensuring that imported goods comply with all customs and legal requirements and that all duties and taxes on the imported goods are paid. The IOR, or their authorized agent, also has to declare the goods to customs. This means that the IOR is also the party who retains the customer broker for a shipment. Usually, the IOR is a customer in Canada who is making a purchase from a foreign vendor. Sometimes, however, a company that is not based in Canada might want to act as the IOR for goods that they themselves are shipping over the border. For example, a US-based company that regularly ships to Canada may want to act as the IOR for all of their shipments so that each of their customers doesn’t have to get their own customs broker and pay import fees, which might deter Canadian customers.
When a non-Canadian business acts as the IOR for an import into Canada, they are known as a Non-Resident Importer (NRI). To become an NRI, you will need to register in advance to collect and remit the Canadian taxes, and you will need a Canadian import-export account.
Here are the steps you can take as a non-Canadian business to become a registered NRI:
1. Gather your information
To register for GST, you will need information about your last fiscal year, including your total revenue. You will also need identifying information for your business, including the legal name, address, a description of your business activities, and your incorporation number. A detailed guide to all of the information you need is available here. You will also need information about the type of products you plan to import. To find out if your products are admissible to Canada and if they are subject to any additional licensing requirements, consult with a Canadian customs broker.
2. Register with the Canada Revenue Agency
You can apply online for a Canadian business number by filling out the online Non-Resident Business Number and Account Registration Web Form. In addition to registering for a business number, you will need to register for two program accounts: “GST/HST (RT)” and “Import/export (RM)”. You will need both of these extensions to import goods into Canada. You can apply for the program extensions through the same online web form.
3. Assemble your team
You will need a Canadian customs broker and a Canadian accountant. Your customs broker will collect the GST when your imports cross the border and bill the tax back to you. Your accountant can then remit the collected tax back to the Canadian government in quarterly GST returns, and claim the cost of the tax back using an Input Tax Credit (ITC).
Once you are registered as an NRI, you can start importing. You will be able to ship to customers in Canada, billing them for Canadian tax, and handle the entire customs and import process behind the scenes without involving your customers. Registering as an NRI makes the import process seamless for your Canadian customers.
Contact King Bros if you would like to find out more about the process of becoming a Non-Resident Importer or import requirements for your products.
By Robin Smith, M.A., CCS.
– Robin is a trade industry professional based in Victoria, BC.
