Frequently Asked Questions.

- Why can NRI provide a better service than we can on our own?

NRI's core competencies are inventory and order management. We direct our energies toward those areas and to insure that our systems and equipment are leading edge. Our product is distribution and all of the supporting services from inventory management to warranty repair and as you are continually looking to improve your product so are we.


- GST, How does it affect doing business in Canada?

Goods imported into Canada are subject to the Goods and Services Tax (GST). The GST is payable upon importation and is based on the duty paid value of the Goods, in turn you will also collect the GST from your Canadian customers by billing them GST Sales Tax on your invoice to them. The present rate of GST is 7%. The GST is an end-use tax collected on a multi stage basis. All Firms with (Canadian) annual sales exceeding $30,000.00 must register and must post a GST Bond. You will be issued a Business Number (BN) with an annex code of "RT" for GST and "RM" for importing. Remember, even if you do not need to register for GST you must still register for a BN for importing into Canada, which will include an annex code of RM for importing only.
After registering you would prepare and submit a GST return at selected intervals showing the amount of tax you charged and the amount of tax you paid. If the amount of GST charged is greater than the amount you paid, the difference would be owed to the Government of Canada. If the amount of GST paid is larger, you could claim a refund. More information is available regarding the GST Taxation and Returns from NRI Distribution Inc.


- Why can't I ship direct from the US?

If your products are manufactured domestically you can, however this may not be the most cost effective manner to do business. Each international transaction requires documentation, Customs Brokers and delays. You may find the processing costs related to each order is excessive. You could also be passing on the cost of US Duty in your price to Canadian customers who will then be subject to Canadian Duty as well. COD services are not generally available on direct US/Canada shipments.


- Can I ship offshore goods to Canada via the US?

This will depend upon the item. If you first import the goods into the US you will be incurring a US Duty cost. You will now be passing this on to the Canadian customer who will pay Canadian duty on the value and US Duty. Some items, when shipped via the US are subject to a higher rate of duty than if they were shipped directly from origin to Canada.


- How do you charge?

We charge either per piece or a percentage of wholesale. A portion of the fee is charged against the receipt and the balance at the time of shipment. Our fees generally encompass all communications, physical verification of quantities, free time, packing materials, picking and shipping. Services such as ticketing, kitting, warranty and physical inventory counts are available at an additional charge.


- Do I have to pay tax in Canada?

Most US based Non-Resident Importers rely on Article VII of the 1980 Canada-US Treaty to override liability for Canadian Tax. Article VII states that taxes are payable in the country where a permanent residence is established. Most NRI's without a permanent business establishment in Canada will be exempt from Canadian taxes. However, this does not exempt the NRI from filing an annual tax return. (T2 Schedule 91E) Assistance in completing this filing is available.


- How do I get paid?

Net accounts simply forward payment directly to your offices in the US. Credit services are available with specific expertise in the sporting goods and apparel trade. NRI also offers a variety of COD shipping services from Cash to Post Dated Check return.


- Do I have to do business in Canadian Funds?

This is a marketing and sales question. NRI is capable of handling transactions in both US and Canadian funds. Most Canadian retailers prefer to do business in Canadian currency. You can hedge to reduce exchange risk.


- How much business do I need to do in Canada?

How much do you want to do? If you have a quality product with marketing support and established US sales you likely have demand in Canada. You probably haven't realized the true potential of your line until you get on an even playing field with domestic suppliers.


- I am a Canadian Company and have offices and staff, why should I contract outside services for warehousing and distribution?

If your core competencies are design, production, marketing and sales then your focus should be directed toward those areas. Physical distribution requires a commitment to fixed costs such as warehouse space and fixtures. These commitments can be from 3-5 years and if your company is growing you will be required to either pay for unused space to allow for that growth or pay a premium for short term space. If your business is at all seasonal those costs will remain 12 months of the years whether or not there is any commercial activity to support the expense.


- The apparel and equipment businesses are special. Our product and customers can require special handling. How can we be sure that you will provide the level of service required and respond to deadlines?

NRI has focused on this business for 8 years successfully. We have built our systems to support the requirements of Vendors serving your industry. Managing the volumes and deadlines, being responsive and still maintaining accuracy are our strengths. We will work with you to overcome in season issues and still meet your required deadlines.

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