Importing a US car into Canada
It’s pretty handy having someone in the office who has imported a vehicle into Canada from the US. Our Office Admin did just that this summer. She said it was so easy you save so much money she’s puzzled as to why more people don’t do it.
She was kind enough to give us the following procedure:
How to import a used vehicle into Canada
1. Before importing a vehicle, you must call to make sure it is allowed to be imported into Canada you can find out from:
Registrar of Imported Vehicles: 1-888-848-8240
Canada Border Services Agency: 1-800-461-9999
Transport Canada:1-800-333-0371 or 1-613-998-8616 (Outside Canada)
Canada Customs and Revenue Agency:1-800-461-9999 or 1-506-636-5064 (Outside Canada)
You can also check Transport Canada’s web site (www.tc.gc.ca) for a list of admissible vehicles. Call your insurer to make sure that your imported vehicle has, or requires, an approved anti-theft immobilizer as some insurers will require an immobilizer before certain vehicles can be insured and/or registered.
2. Once you purchase your vehicle, you must have all the required documentation in order to bring your vehicle back into Canada. You will need to a fax all the documents to the U.S. Customs border crossing you will be passing through. They require the paperwork 72 hours prior to export. The documentation required are:
- A recall clearance letter/printout obtained from the vehicle dealership or the original equipment manufacturer (OEM)
- Sales receipt
- Title documents (both sides of title)
- Registration (if applicable)
Call US Customs, at the appropriate boarder crossing, to ensure that they have received your fax and that no other documents are required. At this time you can contact your insurer to advise them that you are purchasing a vehicle in the US and that you require a Temporary Registration Permit, you may require a 2 week permit as it takes time to receive all the required documentation once in Canada before you can insure the vehicle.
Make sure that you have adequate third party liability (TPL) coverage. In no fault provinces many people carry $200,000 in TPL, this will not cover you in United States (and provinces like Alberta) where there is tort law governing traffic accidents. Provinces with no-fault insurance mitigate the need for having a high TPL limit but where there isn’t no-fault insurance you should carry at least $1,000,000. The more the better as it typically doesn’t cost much more to go from $1,000,000 to $3,000,000 TPL.
3. When you are at U.S. Customs they will review all your original documentation and then proceed to your vehicle to check that the VIN matches your paperwork. They will stamp your Certificate of Title and you will then proceed to the Canada Customs. Canada Customs will give you a “Vehicle Import Form - Form 1″ to complete (this must be kept in the vehicle until licensed). At Canada Customs you will be required to pay the GST on the Canadian price of your imported vehicle, an air conditioning excise tax (if applicable) of $100.00 as well as a fee of $195.00 plus GST (more in Quebec) to go to the Registrar of Imported Vehicles (RIV). Thankfully you won’t have to carry cash as they understand Visa and Mastercard at Canada Customs.
There is no duty due for vehicles manufactured in North America or vehicles over 25 years old. If your vehicle does not fit that cirteria you’ll be assesed duty of 6.2%. You’ll also have to pay HST or PST either at the border or when you register your vehicle depending on which province the vehicle will be registered in.
4. Once you have entered Canada, within 10 days you should receive a letter from the “Registrar of Imported Vehicles” (RIV) with your inspection information (Form 2 of the Vehicle Import Form). This will advise you as to what is required to make your vehicle compliant with Canadian standards. When the modifications are completed (Eg. daytime running lights, metric speedometer & odometer labels, tether bolt) you will take your vehicle to Canadian Tire (RIV has Contracted Canadian Tire) for a Federal inspection (no charge). Once your vehicle passes the inspection they will stamp Form 1 of the Vehicle Import Form. They will fax Form 2 to RIV once everything is approved by them. Be sure to keep all your receipts for any modifications that have been done. Within a week you will receive a Canadian Certification Label from RIV to affix to your vehicle door.
5. You will need to pass a provincial safety prior to insuring your vehicle. Once this is completed you can get license plates on your vehicle. Bring all documentation including the stamped Form 1 of the Vehicle Import Form to the licensing agent as you may be required, depending on your province, to pay the PST on your Canadian purchase price.
Additional Considerations
Keep in mind that there may be something specific to your part of Canada that isn’t included here … or something that we’ve left out, the customs people on both sides of the border can make sure you’ve covered all your basis before you go through the expense of buying a car and traveling down to the States to pick it up.
It’s a good idea to look at the car and take it for a drive before you buy it. If that doesn’t fit into your schedule then you can save yourself a potentially expensive mistake by taking a look in the Yellow pages of the city the car is located in for an Auto Appraiser. Basically anywhere there is insurance companies there are people who are experts at appraising them. It may cost a few hundred dollars but you can get a professional opinion about the value of the vehicle as well as its condition.
Finally if the deal looks too good to be true it is. No one will sell you a car with $80,000 worth of modifications for $5,000.
Happy shopping!
Demetri & The LemonFree.com Team
