Selling to customers in the U.S. and Canada can open up massive new markets, even if your company is based elsewhere. The key is to operate as a Non-Resident Importer (NRI), which allows you to manage all cross-border logistics and customs from abroad. This creates a simple, “delivered-price” experience for your buyers, making it feel like they’re purchasing from a local supplier.

This guide explains the specific requirements for becoming an NRI in both the United States and Canada. We cover the U.S. process for getting a Customs Assigned Number (CAIN) and the Canadian rule for registering for GST once your annual sales exceed $30,000 CAD. You’ll learn about critical roles like the Importer of Record and the Ultimate Consignee, and see how a Power of Attorney enables a customs broker to manage compliance on your behalf.

What is a Non-Resident Importer (NRI)?

A Non-Resident Importer (NRI) is a foreign company that acts as the Importer of Record for goods shipped to Canada. This structure allows the seller to manage all customs duties, taxes, and Compliance-Anforderungen from abroad, creating a seamless, landed-cost experience for Canadian buyers without needing a physical presence in the country.

The NRI Role as Importer of Record

A Non-Resident Importer (NRI) is a company located outside of Canada that serves as the official Importer of Record (IOR) for goods it ships into the country. By taking on this role, the foreign business assumes full legal and financial liability for the shipment. This includes paying all customs duties and taxes and ensuring the goods comply with all Canadian import regulations, including any rules from Other Government Departments (OGDs).

This model allows the NRI to sell products to Canadian customers on a “delivered-price basis.” The buyer pays a single, final price, and the NRI handles all the complex cross-border logistics behind the scenes. This removes the import burden from the Canadian customer, creating a transaction experience that is as simple as buying from a local supplier.

Registration and Compliance Requirements

To operate legally, an NRI must first obtain a 9-digit Business Number (BN) from the Canada Revenue Agency (CRA). This number needs an ‘RM’ extension to identify the company as an importer. If the NRI’s annual sales in Canada exceed $30,000 CAD, it must also register for a Goods and Services Tax (GST) account, which adds an ‘RT’ extension to its BN. This allows the company to collect the 5% GST from its customers and claim Input Tax Credits (ITCs) on the tax it paid when the goods entered Canada.

Each shipment requires accurate and complete documentation. This includes a Canada Customs Invoice (CCI) or an equivalent commercial invoice, correct HS tariff codes for calculating duties, and any necessary certificates of origin (like one for CUSMA) to qualify for preferential tariff rates. The Customs Act also requires that all import-related records are maintained for a period of six years.

Getting a CAIN (Customs Assigned Number)

To get a Customs Assigned Number (CAIN), a foreign importer must submit CBP Form 5106. The process takes 4-6 weeks, has no direct cost from CBP, and provides a permanent number needed to file customs entries and associate a customs bond.

Application Process and Eligibility

U.S. Customs and Border Protection (CBP) issues a Customs Assigned Number (CAIN) to foreign importers who do not have a U.S. Social Security Number (SSN) or Employer Identification Number (EIN). This unique identifier enables the foreign entity to file customs entries and link the required customs bond to their shipments. Eligible parties include foreign companies, individuals importing goods for commercial purposes, foreign governments, and temporary importers. In most cases, a U.S. customs broker manages the application on behalf of the importer to ensure compliance.

Required Forms, Timelines, and Validity

To obtain a CAIN, the importer or their broker must submit CBP Form 5106. The standard processing time is approximately 4–6 weeks, and CBP does not charge a fee for issuing the number. Once assigned, a CAIN is considered permanent and remains valid indefinitely, unless the importer’s business information changes. This number is essential for filing critical entry documents, such as CBP Form 3461, which are necessary for goods to clear customs.

The Role of the “Ultimate Consignee”

For a non-resident importer, the ultimate consignee is a required U.S.-based entity, like a warehouse or 3PL partner, with a U.S. address and tax ID. This party receives the goods after customs clearance and assumes full legal liability for duties, taxes, and compliance, per CBP Directive 3550-079A.

Defining the U.S.-Based Consignee Rule

According to U.S. Customs and Border Protection (CBP) Directive 3550-079A, the ultimate consignee must be the party in the United States that physically receives the goods after they are released from customs. This entity is required to have a U.S. address and a federal tax ID number, also known as an Employer Identification Number (EIN). A Customs Assigned Number (CAIN) held by a foreign importer does not satisfy this requirement; a separate, U.S.-based entity must be designated to fulfill this role.

For most non-resident importers, typical ultimate consignees include third-party logistics (3PL) providers, fulfillment centers, or warehouses that handle the distribution and storage of the imported products.

Legal Liabilities and Documentation

Die designated U.S. ultimate consignee assumes full legal responsibility for all duties, taxes, and regulatory compliance associated with the import. This party also bears the liability for any fines, penalties, shipment delays, or seizures that result from non-compliance. The consignee’s information, including its name, address, and EIN, must be accurately declared on customs entry forms such as CBP Form 3461 or 7501.

Furthermore, the ultimate consignee must maintain all customs-related records for five years to support potential CBP audits. Inaccurate documentation can lead to severe consequences, with penalties often exceeding $10,000 per violation.

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Managing Taxes & GST from Abroad

As a non-resident importer in Canada, you are responsible for paying customs duties based on HS codes and a 5% GST on the duty-paid value at the border. If your annual sales exceed CAD $30,000, you must register for GST with the CRA, post a security bond, and collect/remit GST on sales.

Calculating & Paying Import Duties and GST

When your goods arrive in Canada, the Canada Border Services Agency (CBSA) assesses two primary taxes. First, it applies customs duties based on the product’s Harmonized System (HS) classification and country of origin. Second, it levies a 5% federal Goods and Services Tax (GST) on the duty-paid value, which is the value of the goods plus any applicable customs duties. For goods originating from the United States, you may qualify for a 0% customs duty rate under the USMCA trade agreement, but you must provide a valid certification of origin to claim this benefit.

You must pay all duties and taxes directly to the CBSA. This payment typically requires a Canadian bank account. Many non-resident importers (NRIs) find it easier to work with a licensed customs broker who can manage payments on their behalf. It is critical to maintain complete import records, including commercial invoices, origin certificates, and HS code documentation, as the CBSA may conduct audits to ensure compliance.

GST Registration Thresholds and Compliance

Your tax obligations extend beyond the border if your business grows. Once your annual taxable sales into Canada exceed CAD $30,000, you must register for a GST/HST account with the Canada Revenue Agency (CRA). As part of this process, registered NRIs are required to post a security bond with the CRA to ensure compliance with tax remittance rules. All importers must also register on the CBSA’s CARM Client Portal and arrange for Release Prior to Payment (RPP) security, which allows goods to be released from customs before duties and taxes are paid.

Registering for GST offers a significant advantage. The GST you pay at the time of import can be fully recovered as an Input Tax Credit (ITC) when you file your returns. This effectively neutralizes the cost of import GST. If you are not registered, you cannot claim ITCs, and the import GST becomes a direct cost to your business.

Power of Attorney for Foreigners

A Customs Power of Attorney is a legal document required by U.S. Customs that allows a foreign company to authorize a licensed U.S. customs broker to act as their agent. This document enables the broker to manage all customs-related tasks, including filing entries and signing documents, making it the key instrument for operating as a Non-Resident Importer.

Granting Authority to Your U.S. Customs Broker

A Customs Power of Attorney (POA) empowers a licensed U.S. customs broker to act as the “attorney-in-fact” for a foreign importer. This authorization allows the broker to sign and file all necessary customs documents, including entries, declarations, and bills of lading. The broker can also execute customs bonds, manage drawback claims, and handle the release of merchandise on behalf of the importer. The scope of this authority is generally established using standard language from CBP Form 5291, as governed by federal regulation 19 CFR Part 141, Subpart C.

Legal Jurisdiction and Validity Periods

The POA document includes a critical clause where the non-resident importer consents to U.S. court jurisdiction for any customs-related legal disputes. It also authorizes the U.S. broker to accept the service of legal process on behalf of the foreign company, establishing a formal connection to the U.S. judicial system.

The duration of a POA is tied to the business structure of the importer. A POA granted by a partnership has a strict validity period and expires two years after its execution date. For a corporation, the POA remains in full force and effect until it is formally revoked in writing by the importer, allowing for a more continuous business relationship.

Final Thoughts

Yes, you can import to a country you don’t live in, but the process requires careful planning and adherence to specific legal structures. The path for a non-resident importer looks different depending on the destination. Selling into Canada means registering your business and managing tax obligations directly with Canadian authorities. The U.S. system operates differently, requiring you to obtain a Customs Assigned Number (CAIN) while mandating that a separate, U.S.-based entity acts as the ultimate consignee with full legal liability.

Successfully navigating these regulations is rarely a solo effort. The intricate requirements—from securing a Power of Attorney and a customs bond to managing GST registration and finding a U.S. consignee—make professional partnerships essential. Working with experienced customs brokers and third-party logistics (3PL) providers is the most effective way to ensure every legal box is checked, your documentation is accurate, and your shipments move across the border without costly delays.

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