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Explainer: BN and RM numbers for importing into Canada

Written by CDN Customs Consulting Dept. - Cole International | Sep 18, 2024 11:00:00 AM
 

At Cole International, we believe that the more you know, the better your goods will go. Our Explainer posts provide valuable information you should know about before making your next move.

We understand that the logistics industry involves complex processes, regulations, and definitions that can be overwhelming to navigate. Cole's Explainer series breaks down key concepts into bite-size knowledge that's easy to consume. 

In this Explainer, we’ll examine BN and RM numbers for importing into Canada, including how they work and how to apply for program accounts.

What Is a BN for importers?

A BN (business number) is a nine-digit number that the Canada Revenue Agency (CRA) assigns to an individual business or a self-employed person. The BN identifies your business to government agencies and facilitates access to federal, provincial, and municipal programs and services. Every business has its own unique business number, serving as a type of registered identification number for each organization. 

When do I need a new BN?

Registering for a CRA program account or using the Business Registration Online (BRO) will involve the creation of a new BN. According to the CRA, companies that incorporate federally or register with the following provinces will get a BN:

  • Alberta
  • British Columbia
  • Manitoba
  • Nova Scotia
  • Ontario
  • Prince Edward Island
  • Saskatchewan

Companies that import into Canada also need a business number to interact with the Canada Border Services Agency and other agencies and programs outside of the CRA. Each business and legal entity can have only one BN, so changes to the business structure or ownership could require a new business number for the organization.

What is a RM number for importers?

A RM number is an identifier for a program account that’s specifically for use by importers and exporters. After you get a BN from the CRA, you can then sign up for a program account. After May 13, 2024, importers will interact with the CBSA, not the CRA, for the import/export RM program account. This means that new importing companies will first get their BN from the CRA before getting an RM number from the CBSA.

Every program account has a two-letter identifier code. For importers, the program identifier code is RM. Some of the other program codes include:

  • RC - Corporate income tax code
  • RP - Payroll deduction code
  • RR - Registered charity code
  • RZ - Information returns code

How to read the BN and RM numbers on the program account

Program accounts under the CRA and CBSA are put together with three different parts that create a program account identifier.

1. Business number – the nine-digit BN identifies the business or legal entity.

2. Program identifier code – a two-letter code identifies the program

3. Reference number – a four-digit reference number identifies the account number under the program

Under this system, if you have a BN of “111111111”, a program code of “RM”, and a reference number of “0001”, your import/export program account number would be "111111111 RM 0001".

Do importers need a BN and a RM in Canada?

Companies that import goods into Canada will need to register for a BN and a RM number with the CRA and the CBSA. Your business might also need to register for other programs under the CRA. Your import/export program account will need to be set up before you bring goods across the border.

How do importers register for a BN number?

There are different processes that importers can use to register for a business number. A non-resident importer will undergo a different process than an importer with a Canadian HQ. You have the option of selecting the appropriate link on Canadian government portals available online.

Importers can work with customs brokers to ensure that your registration and application process goes smoothly. Brokers also keep you up to date with the CRA and CBSA if you need to update your account number if you change your business address, contact information, ownership, or organizational structure.

The more you know!

We invite you to continue growing your knowledge base by exploring our earlier Explainer posts:

Explainer: How do Schedule B numbers, HTS codes, and HS codes work?

Explainer: Why businesses work with Customs compliance consultants

Explainer: Importer Security Filing (ISF) for Canadian importers

 

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