{"id":15432,"date":"2024-03-27T08:52:00","date_gmt":"2024-03-27T15:52:00","guid":{"rendered":"https:\/\/michaeljbrumm.com\/dcl-v3\/?p=15432"},"modified":"2024-06-10T09:04:25","modified_gmt":"2024-06-10T16:04:25","slug":"what-is-nri","status":"publish","type":"post","link":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/supply-chain\/what-is-nri\/","title":{"rendered":"What is NRI (Non Resident Importer)?"},"content":{"rendered":"<p><span data-contrast=\"auto\">In the context of an ecommerce brand shipping internationally, being a Non-Resident Importer refers to a company or individual located outside the destination country but taking on the responsibilities of an importer in that country. This model is often used to streamline the customs clearance and delivery process for the end customer. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/why-establish-nri-canada\/\"><span data-contrast=\"none\">NRI isn\u2019t right for all brands.<\/span><\/a><span data-contrast=\"auto\"> It\u2019s best to work with an international shipping expert to help you determine the most efficient strategy. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">What is NRI?<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">A <\/span><a href=\"https:\/\/www.trade.gov\/canada-non-resident-importer-program#:~:text=A%20Non%2DResident%20Importer%20(NRI,and%20other%20import%2Drelated%20requirements.\"><span data-contrast=\"none\">Non-Resident Importer (NRI)<\/span><\/a><span data-contrast=\"auto\"> is a concept mainly used in international trade and commerce. When a business is located outside of Canada ships goods to Canadian customers, the non-resident importer assumes the responsibilities for customs clearance, <\/span><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/supply-chain\/guide-to-import-taxes\/\"><span data-contrast=\"none\">import taxes<\/span><\/a><span data-contrast=\"auto\">, and more. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">For example, many US-based ecommerce brands have customers (retail or DTC customers) in Canada. By being the NRI the brand assumes the responsibility for customs clearance and other import-related requirements.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The alternative to establishing NRI when shipping into Canada is to place the customs responsibility on the end-customer, the Canadian recipient of the goods. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">How to Become a Non-Resident Importer\u00a0<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">A business can register for the NRI program through an international broker. The criteria to establish NRI includes: <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ul>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">US brand must be compliant as an exporter to Canada<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Vet that the US company is taking advantage of <\/span><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/news\/usmca-small-business\/\"><span data-contrast=\"none\">USMCA<\/span><\/a><span data-contrast=\"auto\"> benefits wherever possible<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Obtain a Canadian Business Number <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"1\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559683&quot;:0,&quot;335559684&quot;:-2,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"auto\">Complete the Agreement for Maintaining Books and Records Outside of Canada<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ul>\n<p><b><span data-contrast=\"auto\">3 Core Responsibilities of a Non-Resident Importer<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">As an NRI, the ecommerce brand assumes the responsibilities typically handled by the customer or a local importer in the destination country. While they may vary based on each country, here are the core responsibilities of an NRI. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"auto\">1 Pay Tariffs, Taxes, and Duties<\/span><\/i><span data-ccp-props=\"{&quot;335559685&quot;:0}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The NRI is responsible for calculating, collecting, and paying any applicable <\/span><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/supply-chain\/duties-taxes-tariffs-explained\/\"><span data-contrast=\"none\">tariffs, duties, or taxes<\/span><\/a><span data-contrast=\"auto\"> associated with importing goods into the destination country. This helps in providing a more predictable and transparent pricing structure for the customers.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ol start=\"2\">\n<li><i><span data-contrast=\"auto\"> Complete Customs Documentation<\/span><\/i><\/li>\n<\/ol>\n<p><span data-contrast=\"auto\">The Non-Resident Importer must ensure that all required <\/span><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/most-important-international-shipping-documents\/\"><span data-contrast=\"none\">customs documentation<\/span><\/a><span data-contrast=\"auto\"> is accurate and complete. This may include <\/span><a href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/shipping\/commercial-invoice\/\"><span data-contrast=\"none\">commercial invoices<\/span><\/a><span data-contrast=\"auto\">, packing lists, and any other documents required by the customs authorities of the destination country.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"auto\">3 Ensure Compliance with Local Regulations<\/span><\/i><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">The Non-Resident Importer needs to be aware of and comply with the import regulations, tax laws, and any other relevant requirements of the destination country. This may involve obtaining the necessary licenses or permits to import goods into that specific market.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Some countries may require a physical presence or a representative within their borders for an entity to act as an importer. In such cases, the ecommerce brand may need to establish a legal presence or work with a local partner to fulfill these requirements.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><b><span data-contrast=\"auto\">Pros and Cons of NRI for Ecommerce Brands <\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">Establishing your brand as the non-resident importer isn\u2019t always the best strategy. It all depends on your product specifications and who your end-customer is. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><span data-contrast=\"auto\">For example, being the NRI for shipments as a direct-to-consumer (DTC) brand may create more problems than it solves. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<p><i><span data-contrast=\"auto\">Benefits <\/span><\/i><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ol>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559683&quot;:0,&quot;335559684&quot;:-1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0,46],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Simplified Customer Experience. By taking on the role of the importer, the ecommerce brand aims to provide a smoother and more transparent experience for the international customers. This can lead to faster shipping times, reduced customs-related delays, and potentially lower costs for the end customer.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ol>\n<ol>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559683&quot;:0,&quot;335559684&quot;:-1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0,46],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Increases Your Competitive Advantage. By\u00a0consolidating shipments, a US brand can clear the goods in their own name as one clearance and reduce the cost of shipping, creating significant savings that can be passed on to the Canadian customers.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ol>\n<ol>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"3\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559683&quot;:0,&quot;335559684&quot;:-1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0,46],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Simplifies Pricing. By including transportation costs, customs clearance fees, duties and taxes in the selling price of the goods, the U.S. company creates price certainty for their Canadian customers. This eliminates \u2018surprise\u2019 additional fees once the goods pass into Canada.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ol>\n<p><i><span data-contrast=\"auto\">Disadvantages <\/span><\/i><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\n<ol>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"4\" data-list-defn-props=\"{&quot;335551671&quot;:1,&quot;335552541&quot;:0,&quot;335559683&quot;:0,&quot;335559684&quot;:-1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0,46],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Tax and Financial Implications. By being the responsible party for all customs fees and clearance, brands put themselves in position of greater risk and liability. Smaller brands may not be able to take this on initially. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ol>\n<ol>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"4\" data-list-defn-props=\"{&quot;335551671&quot;:1,&quot;335552541&quot;:0,&quot;335559683&quot;:0,&quot;335559684&quot;:-1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0,46],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Potential to Increase Import Taxes. When a US business is listed as the importer, the values of multiple shipments to different consumers must be combined as if they were all part of a single shipment, making it almost certain to surpass the de minimis thresholds. As a result, duties and taxes may be incurred on imports that might otherwise have been cleared under these thresholds established by the current USMCA policy. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ol>\n<ol>\n<li data-leveltext=\"%1.\" data-font=\"\" data-listid=\"4\" data-list-defn-props=\"{&quot;335551671&quot;:1,&quot;335552541&quot;:0,&quot;335559683&quot;:0,&quot;335559684&quot;:-1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0,46],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" aria-setsize=\"-1\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Administrative Burden. Canada has specific regulations and requirements for importing goods, and these regulations can be complex. Navigating the Canadian Customs system may require a good understanding of the rules and may involve additional administrative burdens. Also, for direct-to-consumer goods the importer of record (IOR) is defaulted to the Canadian customer. <\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\n<\/ol>\n","protected":false},"excerpt":{"rendered":"<p>In the context of an ecommerce brand shipping internationally, being a Non-Resident Importer refers to a company or individual located outside the destination country but taking on the responsibilities of an importer in that country. This model is often used to streamline the customs clearance and delivery process for the end customer. \u00a0 NRI isn\u2019t [&hellip;]<\/p>\n","protected":false},"author":11,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","footnotes":""},"categories":[122],"tags":[2054],"class_list":["post-15432","post","type-post","status-publish","format-standard","hentry","category-supply-chain","tag-international"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v22.5 (Yoast SEO v26.9) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>What is NRI (Non Resident Importer)? | DCL Logistics<\/title>\n<meta name=\"description\" content=\"When shipping into Canada make informed decisions about import taxes. Being an NRI, non-resident importer your brand takes responsibilities for customs clearance.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/supply-chain\/what-is-nri\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"What is NRI (Non Resident Importer)?\" \/>\n<meta property=\"og:description\" content=\"When shipping into Canada make informed decisions about import taxes. Being an NRI, non-resident importer your brand takes responsibilities for customs clearance.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/supply-chain\/what-is-nri\/\" \/>\n<meta property=\"og:site_name\" content=\"DCL Logistics\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/DCLLogistics\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-03-27T15:52:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-06-10T16:04:25+00:00\" \/>\n<meta name=\"author\" content=\"Maureen Walsh\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@dcl_logistics\" \/>\n<meta name=\"twitter:site\" content=\"@dcl_logistics\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Maureen Walsh\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"What is NRI (Non Resident Importer)? | DCL Logistics","description":"When shipping into Canada make informed decisions about import taxes. Being an NRI, non-resident importer your brand takes responsibilities for customs clearance.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/michaeljbrumm.com\/dcl-v3\/blog\/supply-chain\/what-is-nri\/","og_locale":"en_US","og_type":"article","og_title":"What is NRI (Non Resident Importer)?","og_description":"When shipping into Canada make informed decisions about import taxes. 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