Previously, we introduced you (U.S. company) to the Non-Resident Importer (NRI) Program for exports to the Canadian market. In this segment, we'll provide excellent reasons as to why shipping your overseas goods directly to Canada is the way to go.
One of Canada's passions is hockey, therefore, this is great market to sell hockey sticks. If you are a U.S. company wanting to sell hockey sticks into Canada, this is not a problem. But it is a problem if the hockey sticks are initially imported into the USA from China first and then exported to Canada. The reason being, the hockey sticks will then attract duty. Considering your duty and freight cost to re-export to Canada, the price is no longer competitive as a Canadian firm can import the same hockey stick duty free direct from China. This is where the option of being an NRI is a cost benefit to your company. You can utilize the NRI option for a direct to market cost savings to import the hockey sticks duty free into Canada direct from China.
Many U.S. companies do not export from their locations in the USA. They have enough sales volume to bring the goods into Canada directly from the offshore country without ever landing in the USA and can then take advantage of Canada?s trade agreements with other countries. Just one of the benefits of being a Non-Resident Importer!
Let?s look at another example of how you can use the NRI option to your benefit ? perhaps you export (not as an NRI) high end walking sticks made in Italy to Canada. These walking sticks are so desirable, you have no trouble selling them to the Canadian market, despite the Canadian consumer has to pay tax and 7% duty to import them.
With the product, you offer a lifetime warranty of a free replacement, should any of the walking sticks break or crack but the customer will still be responsible for the duty & taxes on the free replacement. The customer is not so happy. If you shipped as the a Non-Resident Importer, the customer would not endure anymore costs. Your customer in Canada is extremely pleased with your hassle free replacement warranty and spreads the word.
You decide to use the NRI option for all your sales to Canada and find you can actually reduce the cost by acting as the NRI due to your weekly volume of shipments to Canada. Your phone starts ringing, and your website traffic increases with even more orders for the beautiful lifetime guaranteed Italian walking stick! A true success story!
For more information on NRI option and how it can benefit your sales in Canada, contact us at email@example.com and get a jump on other exporters to Canada who are not taking advantage of the Non-Resident Importer option.