NRI Checklist for a Successful Import Program for Canada

An Expert's View about Import Compliance in the United States

Posted on: 13 Dec 2011

If you are an existing Non-Resident Importer, a good review to make sure you are compliant in case of an audit.

Compliance & Set Up Checklist for Non-Resident Importers (NRI) ? Review POA kit for completion and return. ? Have catalog or product list classified for possible duty rates. ? Review GST/HST Tax Considerations. Should you register or not? For a complete professional consultation, speak with Paul Bekenn (pbekken@knv.com) of KN&V ? Chartered Accountants. ? Review tax chart to charge correct applicable tax based on type of customer o Business to Business vs. Business to Consumer o B2B sale or B2C sale each have a different tax rate ? Learn/refine/format how to quote a landed cost to customers in Canada Product Sale Value + Duty/Tax/Brokerage/Freight = Landed Cost ? Obtain freight advice/quotes from Pacific Customs Brokers or current carrier. ? Update computer system to charge necessary Customs fees. ? Review & modify sales invoice or use Canada Customs invoice for customs clearance and compliance with CBSA as a clearance document. ? Power Of Attorney signed and accepted by Pacific Customs Brokers ? Credit or Bond in place ? Internal computer systems updated to include duty in sales price (if required) ? Internal computer system updated to charge GST 5% Canadian tax on total value of sale (value + duty = value for tax) and /or HST if a GST Registrant (on the advice of a Canadian Tax Specialist) ? Clear statements shown on invoice: o ?Your Company is an NRI with Pacific Customs Brokers 604-538-1566? o ?Value includes: duty (if included) or tax or brokerage or freight (or all) ? Catalog or website updated to indicate all Customs charges included in final selling price to Canada. ? Sales staff instructed in how to quote a landed cost for Canada. Self-Auditing Program Canada Border Services Agency (CBSA) has clearly identified that importers have the responsibilities of knowing and understanding import regulations. Importers are expected to utilize reasonable care and due diligence to achieve compliance with those regulations. Pacific Customs Brokers will work with you to develop a solid program of best practices and methods of compliance. Customs auditors will be checking for the following: ? Record keeping ? Purchase Order ? Sales invoices ? Receiving reports ? Record of payment receipt ? Permits ? "Reason to Believe" responsibility The NRI Program can be a definite advantage over other U.S. Shippers and domestic sales in Canada, however, you will have practice due diligence with Customs regulations, in order to obtain a successful profitable sales program. By not investing the time to explore all the necessary costs and regulations, could result in an Administrative Monetary Penalty System (AMPS) issued by CBSA. Every importer is potentially subjected to a Customs audit. Customs may search for prior history of compliance errors, poorly defined and documented internal control procedures and/or other "red flags". In our opinion, EVERY importer should prepare as if they will be audited by Customs. Pacific Customs Brokers can provide you all the information and tools necessary to ensure your company has a seamless process for your shipments entering Canada.
Posted: 13 December 2011

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