With an improving U.S. economy and a comparable low loonie (dollar) in Canada, U.S. companies continue to find different ways to cut costs while still looking to grow their sales and revenues. Creating or growing an export initiative to Canada right now can be one of the easiest ways to achieve great results.
A stronger U.S. dollar and lower Canadian loonie, still hovering around the 90 cent mark, has encouraged Canadians to continue in online and cross-border shopping.
How can U.S. companies tap into the Canadian market?
As a U.S. business, that is currently not in Canada, you could look into expanding your market by exporting to Canada or, better yet, finding out how to do it better than your competition. Business Executive, John Rollwagen says, “the secret of business, especially these days, is to focus relentlessly on your unfair advantage — the thing you do that others don’t.”
What will give you an “unfair advantage” over other competitors?
Simply put, unfair advantage is just another term for competitive advantage. One suggestion is to look at the Non-Resident Importer Program for Canada and how it may benefit your export growth strategy.
Who is a Non-Resident Importer (NRI)?
A Non-Resident Importer (NRI) is simply a company that is considered the Importer of Record for shipments going into Canada, even though the company does not have a physical presence in Canada. A Non-Resident Importer controls the customs release process and the costs associated with getting their products into Canada in a timely and cost-effective manner. Products are sold with an all-inclusive delivered price. The customer orders and pays for the product and waits for it to be delivered. No border hassles, no waiting for the courier company to arrive and collect extra charges. Ordered, paid, and delivered. That’s it!
What are the benefits of being a Non-Resident Importer?
By becoming a Non-Resident Importer and acting as the Importer of Record you can:
- Remove border hassles and unexpected fees for your Canadian customers
- Provide price guarantee to leverage more sales
- Capitalize on NAFTA for your ‘Made in USA’ products
- Simplify customs documents and reduce customs brokerage fees
- Open doors to large retailers who will not agree to be the Importer of Record
- Create a potential advantage over U.S. competitors without impacting profits
- Position yourself on an even playing field with Canadian firms without the additional expense of a Canadian office, warehouse or distribution point
- Leverage Canada’s trade agreements by shipping directly from participating foreign countries into Canada. There’s no need to land your goods in the USA first.
The NRI option can provide your company with that “unfair advantage” over other competitors who simply just export their products and never think about what happens when the goods cross the border and a delivery attempt is made. Think of how your Client Services Team could actually get a thank you and compliments instead of complaints about unexpected duties or taxes and other related customs release fees. There are more opportunities and benefits that can be realized by becoming a Non Resident Importer, many specific to what you are currently doing or want to do in the future. In coming weeks, we will continue to explore this exciting option of your sales to Canada and all the considerations you should know before you begin.
Pacific Customs Brokers offers a Non-Resident Importer Program tailored to your company’s needs. For more information and to get set up, contact our Compliance Team. They can guide you through the process and help you tap into the Canadian market.
What do you think of Non-Resident Importing as a competitive advantage? How will you use it in your business? Share your thoughts in our comments section below or email us at Ask Your Broker.