How to Become a Non-Resident Importer to the US

It’s a competitive landscape out there in the world of importing and exporting. To succeed as a seller today, it’s all about the ability to compete by providing the best products along with the most seamless transaction for your customer. If you’ve run across the term NRI (oh no, not another acronym!) and you don’t know what it stands for, it’s Non-Resident Importer, and it’s a great thing to learn about for anyone involved in the import/export business. By registering to become a Non-Resident Importer, you can conduct all your business from the comfort of your home or office – wherever that may be!This is a rundown of what it means to be a Non-Resident Importer and why you might want to become one, along with detailed steps showing you how to go about the process.

What is a Non-Resident Importer?

A Non-Resident Importer to the US is someone who is established as doing business in the US, even though he/she does not have a physical presence there. Becoming an NRI takes the burden of importing off the US purchaser, creating a seamless process for them. Consequently, there is a good deal of responsibility involved in becoming an NRI. Rather than customs compliance being handled by the customer, you are now taking on the role of the Importer of Record (IOR). Ultimately, it falls on you to handle compliance with all rules and regulations.Is your import-export business just starting? Don’t miss our complete guide.

Responsibilities involved

In order to make it convenient for your US customers to purchase your products, as an NRI you must take on the responsibility of creating the customs documentation, paying the import duties and taxes, and acting as the Importer of Record (IOR). The IOR is the party ultimately responsible for:

• The import declaration
• Calculating and paying all taxes and duties
• Following all participating government agency regulations

As you can see, the Non-Resident Importer needs to be familiar with customs documentation, import taxes, and all relevant rules and regulations.

Why become a Non-Resident Importer?

Attract more customers

• If you’re looking for a wider distribution of your goods, you most certainly will want to sell to the US. Why? Your customer base would expand to hundreds of millions of buyers just across the border.
• When you become an NRI, your business will appear as a domestic supplier without having a physical presence in the US.
• Being a Non-Resident Importer will make it easier for your customers to purchase your products online through ecommerce sites like Alibaba, Amazon, Ebay, and Etsy.

Eliminate extra costs and headaches for you and your customers

• You can use US warehouses and distribution services rather than setting up your own.
• You’ll be able to relieve your customers from the burden of declaring goods at the border.
• When you streamline the buying process by including duty, tax, and delivery in your purchase price, it’s a hassle-free experience.

Improved tracking

• The US company has total control over the shipment throughout the process and can track it easily, avoiding customs delays.

Price certainty

• The US company can incorporate fees (such as customs clearance fees, taxes and duties, and transportation costs) into the sale price of the product so Canadian customers don’t have to deal with unexpected costs.

Eliminate supply-chain markup

• Take control over all costs for transport, customs brokerage, and duty
• Offer warranty shipments and samples free of charge to your customers.

Steps to take to become a Non-Resident Importer

Are you ready to take the next step and become a Non-Resident Importer to the US? There are three main steps to this process.

• First, you’ll need to obtain a domestic business number. In the US, this means obtaining a customs assignment number.
• Next, you’ll need to register an Agreement for Maintaining Books and Records Outside of Canada with the Canada Border Services Agency (CBSA) informing them of where your records will be kept. You’ll need to write a letter of undertaking that states you will pay for a CBSA agent’s travel expenses in the event of a company audit.
• Register your company for doing business in the US.

The International Trade Administration of Canada recommends that you hire a customs broker to assist you with the Non-Resident Importer process. The good news is, if you want to hire the best customs broker Canada has to offer, you’ve come to the right place! At BorderBuddy, our goal is to make the customs process cheaper, faster, and easier for you. We offer solutions for businesses of all sizes, so give us a call today.