Comprehensive guide for non-resident importers (NRI) into the U.S.

Every day, thousands of businesses around the world successfully export products to U.S. consumers, maximizing profit margins and expanding their market reach. The Non-Resident Importer (NRI) program streamlines this process, making it easier for foreign companies to sell directly to U.S. customers.

NRI

What is a Non-Resident Importer (NRI)?

A Non-Resident Importer (NRI) is a business entity located outside of the United States that imports goods into the U.S. without having a physical presence within the country. The NRI acts as the Importer of Record (IOR) and is responsible for all aspects of the importation process, including compliance with U.S. customs regulations, payment of duties and taxes, and ensuring that goods meet U.S. standards.

Why nri

Who should consider becoming an NRI?

Who should consider becoming an NRI?

  • E-commerce retailers looking to expand their market.
  • Manufacturers who want to distribute their products in the U.S.
  • Wholesalers and distributors aiming to streamline their supply chain.
  • Foreign businesses seeking to gain a foothold in the U.S. market without establishing a physical presence.

Advantages:

Direct access to the U.S. market without needing a physical office or warehouse in the U.S.

Control Over Supply Chain:

Greater control over the logistics and distribution of your products.

Competitive Pricing:

Ability to price goods more competitively by managing import costs and avoiding markups by intermediaries.

Streamlined Customs Process:

Simplified import process as the NRI handles all customs documentation and compliance.

Customer Experience:

Improved customer service with direct shipment and faster delivery times.

Disadvantages:

Regulatory Compliance:

Responsibility for complying with U.S. customs regulations and standards.

Duty and Tax Liabilities:

Obligation to pay import duties, taxes, and other related fees.

Administrative Burden:

Requirement to manage the import process, including documentation, customs clearance, and logistics.

Financial Risk:

Financial risk associated with duty and tax payments, currency exchange fluctuations, and potential delays in customs clearance.

Steps to Become an NRI

How do I become a Non-Resident Importer?

1. Obtain an Employer Identification Number (EIN):

An EIN is a unique number assigned by the IRS to identify a business entity. It is required for all businesses that file taxes or conduct business in the U.S. Your EIN can be your 3PL warehouse if necessary.

    Register Here: IRS EIN Application

    Public EIN Lookup Service: EIN Lookup

    2. Register as an Importer:

    Once you have an EIN, register as an importer with U.S. Customs and Border Protection (CBP).

      Learn More: CBP Importer Registration

      3. Understand U.S. Customs Regulations:

      Familiarize yourself with U.S. customs regulations, including the requirements for importing goods into the U.S.

        Learn More: CBP Import Requirements

        4. Classify Your Goods:

        Determine the correct Harmonized Tariff Schedule (HTS) codes for your products to identify the applicable duties and taxes.

          HTS Code Information: USITC HTS Codes

          5. Calculate Duties and Taxes:

          Estimate the duties and taxes you will need to pay on your imports.

            Duty Calculator: BorderBuddy Duty Calculator

            6. Arrange Logistics and Shipping:

            Plan the logistics for shipping your goods to the U.S., including choosing a reliable carrier and understanding shipping regulations.

            7. Partner with a Customs Broker:

            Consider working with a customs broker to help navigate the import process and ensure compliance with all regulations.

              Find a Broker: BorderBuddy Services

              Types

              Understanding taxes in the U.S.

              Customs Duties:

              Taxes imposed on imports to protect domestic industries and generate revenue.

              Excise Taxes:

              Taxes on specific goods, such as alcohol and tobacco, to control consumption.

              Sales Tax:

              Varies by state; some states require out-of-state sellers to collect and remit sales tax.

              Registering for Sales Tax

                When do I have to register for sales tax?

                If your taxable sales are over the threshold in a particular state, you must register for sales tax in that state.

                How do I register for sales tax?

                Sales Tax Registration: Each state has its own registration process. You can start by visiting the state’s Department of Revenue website.

                • Example: California Department of Tax and Fee Administration

                Information for Sales Tax Registrants

                  What is sales tax charged on?

                  Most goods and services, with exceptions for specific exempt items depending on the state.

                  What do I bill the taxes on?

                  • Value of the goods
                  • Freight (if terms are FOB U.S.)
                  • Brokerage fees
                  • Total amount of Duty, Excise Tax, and any applicable fees

                  How often do I have to file my sales tax return?

                  Filing Frequency: Varies by state and annual taxable sales amount.

                  • Example: In California, annual filers must file no later than January 31st following the end of the year.

                  Information for Non-Sales Tax Registrants

                    Can I pass on the sales tax to my customers if I am not registered?

                    Yes, but you need to provide satisfactory proof of sales tax paid at import to your customers.

                    What if my client refuses to use the flow-through method?

                    Becoming a sales tax registrant is the only way to ensure you are not responsible for the sales tax.

                    Why us

                    How BorderBuddy can help you

                    How can BorderBuddy assist me as a Non-Resident Importer?

                    BorderBuddy offers comprehensive services to help NRIs navigate the complexities of importing into the U.S., including:

                    Customs Brokerage Services:

                    Expert assistance with customs clearance, documentation, and compliance.

                    Duty and Tax Calculation:

                    Accurate estimation and payment of duties and taxes.

                    Logistics Support:

                    Coordination of shipping and logistics to ensure timely delivery of goods.

                    Regulatory Guidance:

                    Advice on U.S. customs regulations and import requirements.

                    Ongoing Support:

                    Continuous support to address any issues that arise during the import process.

                    For more information and personalized assistance, contact BorderBuddy today.

                    By understanding the requirements and processes involved in becoming a Non-Resident Importer, you can effectively expand your business into the U.S. market. BorderBuddy is here to help you every step of the way.