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Non-Resident Importer (NRI) is a firm who in most cases does
not have a physical presence in Canada, yet for purposes of
customs and GST, acts as the importer of record for goods
sold/consigned into Canada.
Unique Marketing Features:
- Simplifies pricing, since selling price is all inclusive
of transportation, customs clearance, duties and GST.
- No involvement on your customers part other than to place
the order.
- Door-to-door service.
- Complete customer convenience.
Total Control
- You control all aspects of transportation, terms, and
customs procedures.
- Shipment tracing is simplified.
- Documentation is less time consuming, and less complicated.
Economical
- Minimizes costs, maximizes profit.
- Enables volume transportation rates to be negotiated.
- Consolidated shipments reduce both transportation and
brokerage fees.
- Documentation is reduced and simplified.
- Ensures consistent duty rates and 0tariff treatment.
Many progressive businesses are taking control of their Canadian
marketing activities under the NRI program. The Cole Group
is dedicated to providing you with the assistance, service,
and technical expertise necessary to optimize your Canadian
marketing strategies.
As an NRI, you will relieve your Canadian customers of the
responsibilities of importation. Simplifying this aspect of
a sale for the benefit of your customers can play a significant
role in penetrating the Canadian market.
Cole International looks forward to assisting you
in streamlining the import process for your customers and
generating more sales for your company. The following is a
synopsis of the main items to be familiar with when making
a decision to become a Non-Resident Importer for exports to
Canada.
Maintenance of Books and Records
- All documents relating to import shipments must be kept
for six years and made available to Revenue Canada on request.
- Written permission must be obtained from Customs as well
as Excise, if the records are to be kept outside of Canada.
Valuation
- If the Canadian customer is non-related, and no other
considerations influence the sale, the selling/transaction
price would be the appropriate Value for Duty. In the majority
of situations, this is straightforward.
- In other circumstances (related parties, consignment goods,
etc.), alternative methods of determining the correct declared
value for customs purposes must be utilized.
Duty/Tariff Treatment
- Based on the universal Harmonized System, the rate of
duty is determined by accurate tariff classification. Binding
rulings are vailable from Customs if the classification
is in doubt, however, most commodities are specifically
named and can be readily qualified by Cole International's
Technical Service Representatives.
Goods and Services Tax (GST)
- Canada's GST is administered similarly to the Value Added
Tax (VAT) system, which is currently in place in the European
community.
- Currently at 5%, this federal tax applies to most goods
and services purchased or imported in Canada.
- A "flow through" tax, GST is collected, credited, and
remitted at each level of a transaction until purchased
by the ultimate consumer.
- Most NRI's would be encouraged to register for the GST,
as a firm is only entitled to recover the GST paid on imported
goods by way of input tax credits, if they are a GST registrant.
Nominal security bonding may be required. Cole International
will assist you in navigating through the necessary paperwork.
Invoicing
- For shipments valued at $1600.00 (CDN) or less, a commercial
invoice is usually acceptable for customs purposes.
- Shipments over $1600.00 (CDN) require a Canada Customs
Invoice (CCI) to accompany the shipment OR a commercial
invoice which contains the same data elements as the CCI.
- Often, with minor modifications, your commercial invoice
will satisfy customs requirements, regardless of value.
- Pricing is critical, since the selling price would be
comprised of the goods itself, transportation, insurance,
brokerage, duty and GST. These pricing components must be
shown separately, where practical, in order to avoid paying
unnecessary duty on pricing elements which, if identified,
are duty free.
Specific, detailed information on any or all of these topics,
and a closer examination of your needs is available from any
of the Cole offices, or by calling our Technical Service
Department at our Head Office (Calgary).
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