Uncover the benefits of importing vehicles from the U.S. into Canada:
- Is it worth importing a car into Canada?
- What are the costs?
- When do you need to work with a customs broker?
- Important considerations
- How Can Border Buddy Help?
- Frequently Asked Questions
US car prices – both new and used – are usually well below Canadian prices, so saving hundreds off the sticker price makes buying across the border an attractive proposition.
Is it worth importing a car into Canada?
The United States offers a broad selection of vehicles at prices typically lower than in Canada. When considering importing a used vehicle from the U.S., it’s important to evaluate several key factors to determine if it’s the most advantageous choice for you. Here are some key things to keep in mind:
- Current Exchange Rate: The value of the Canadian dollar against the US dollar significantly influences the cost. If the Canadian dollar is weak, what seems like a great deal might end up being more expensive than anticipated.
- Import Duties and Taxes: The expenses for bringing a vehicle across the border are not uniform. They can vary greatly depending on the vehicle’s make and model, so it’s crucial to research these costs beforehand.
- Compliance with Canadian Safety Standards: Canada has stringent safety regulations for vehicles. Ensure the car you’re considering meets these standards. If not, you may need to invest additional funds in modifications, increasing the overall cost.
What are the costs?
The timeline for receiving your imported vehicle varies based on the delivery speed you choose. Our shipping partners provide a range of options, including expedited next-day delivery for your convenience.
- Import Duty: For non-NAFTA vehicles such as Toyota, Honda, Subaru, etc., there’s a 6.1% tax.
- Goods & Services Tax (GST): This is charged at 5% of the total value of the vehicle.
- Provincial Sales Tax (PST):
- British Columbia & Manitoba is 7%
- Saskatchewan is 6%
- Quebec is 9.97%
- Note: BorderBuddy only collects the 5% GST, the relative PST is collected once in Canada during the registration and insurance process.
- Air Conditioning Tax: A $100 fee is charged for vehicles equipped with air conditioning.
- Excess Weight Tax: Vehicles weighing over 2,000 kilograms (4,425 pounds) incur additional taxes.
- Gas Guzzler Tax: Vehicles with a weighted average fuel consumption rating of 13 or more litres per 100 kilometres may be subject to extra fees ranging from $1,000 to $4,000.
- BorderBuddy fees for customs clearance and Internal Transaction Number (ITN) filing.
- For an immediate estimate of the cost to import a car to Canada, please use our Free Quote Calculator
Get A Quote Now!
When do you need to work with a customs broker?
You can self-import and self-declare a vehicle into Canada without a customs broker under these circ*mstances:
- Personal Import: If you’re importing the vehicle for personal use, rather than commercial purposes.
- Familiarity with Process: If you’re comfortable with and understand the importation process, including completing required paperwork and paying applicable duties and taxes.
- Compliance with Regulations: You must ensure the vehicle meets all Canadian safety and environmental standards.
- Documentation: Have all necessary documents ready, such as proof of ownership, export documents from the originating country, and a bill of sale.
- CBSA Requirements: Be prepared to meet all requirements set by the Canada Border Services Agency (CBSA), including inspections and payment of fees.
- No Legal Complexities: If the import doesn’t involve complex legal situations like liens or inheritances.
While a customs broker can simplify the process, especially for first-time importers or complex cases, self-importing is feasible if you are well-prepared and knowledgeable about the process.
Tax exemption eligibility: Individuals may be eligible for tax exemption up to $10,000 when moving to Canada as a new settler or when returning to Canada after an extended stay in the U.S.
Contact the Canada Border Services Agency (CBSA) at 1-800-461-9999 to verify your eligibility. If you meet the eligibility criteria, you will be required to self-declare your vehicle at the Canadian border
Important Considerations When Importing Cars
Regardless of the new government restrictions, this is a breakdown of steps you need to take to make when importing a car to Canada a seamless process:
1. Satisfy All Government Agencies
It’s important to check and satisfy all government border agencies when importing a vehicle into Canada, including:
- Transport Canada
- Canada Border Services Agency
- Canadian Food Inspection Agency
- Environment and Climate Change Canada
- U.S. Customs and Border Protection
2. Ensure Your Vehicle is Admissible
Transport Canada has a list of vehicles that are admissible to be imported. Before buying a vehicle in the U.S., you must make sure it’s on this list. The list covers a vast array of elements, such as vehicle age, electronic immobilization systems, running lamps, or if there are any recall notices outstanding. Recalls can be especially tricky and Transport Canada requires that importers contact vehicle manufacturers directly on the latest notices.
3. Have the Right Documentation
Bureaucrats are sticklers for paperwork so you have to make sure all your documentation is in order. It’s not enough to just have a bill of sale; your vehicle must come with documents detailing:
- Title
- A recall clearance letter
- Export certificates
- A manufacturer’s statement of compliance
4. Pass Inspection
Any vehicle imported into Canada must be able to comply with our nation’s strict safety standards. During the import process, the vehicle must pass a Registrar of Imported Vehicles (RIV) inspection. The RIV is a division of Transport Canada and makes sure vehicles meet Canada’s motor vehicle standards. One key factor with any vehicle passing the inspection is determining if it has been “modified” in any way. Once modified (not including routine maintenance or general repairs), the vehicle no longer maintains its original factory-issued certification. Which RIV needs to know if you have modified the vehicle to make sure it still meets Transport Canada requirements.
5. Pay The RIV Registration Fee
As with any bureaucratic requirement, paying the fee requires several steps. There is also a list of exemptions and you’ll need to determine if your vehicle is on that list.
Let Border Buddy Help
How can BorderBuddy Help you get a Vehicle into Canada?
Step 1- Contact Transport Canada:
Avoid the disappointment of investing in a vehicle that fails to meet Canada’s rigorous safety regulations. Before proceeding, gather all the vehicle specifications and directly contact Transport Canada at 1-800-333-0371 to ensure compliance. It’s better to be safe than sorry!
Step 2 – Obtain Necessary Documents:
Collaborate closely with the seller as they are required to sign the original title and provide a recall clearance letter along with a bill of sale. Be aware, any unresolved recalls on the vehicle might complicate or even halt your import plans.
*Step 3 – File for ITN:
The Internal Transaction Number (ITN) is a crucial part of the export/import process. Make sure this number is included in your application to initiate the mandatory 72-hour export notification period.
Step 4 – Present Documents at U.S. Customs:
Timing is crucial in this step. With BorderBuddy’s guidance, you’ll know exactly when to cross the border. At this juncture, you need to present the original title and all documents prepared by BorderBuddy in person to U.S. Customs.
Step 5 – Present Documents at Canadian Customs:
After clearing U.S. Customs, your next step is to present your import documents to Canadian Customs. Stay focused – you’re nearing the completion of your import process.
Step 6 – Complete the Import Process:
Remember, Canadian automotive standards are more stringent than those in the U.S. Passing a vehicle inspection is essential, and this can be conducted by any licensed mechanic. This final step ensures your vehicle is road-ready according to Canadian standards.
How Can BorderBuddy Assist You in Vehicle Import?
Our experience and expertise make importing a vehicle into Canada a seamless, premium experience. Trust us to handle every detail, ensuring your import meets all regulations and standards. Start your journey with BorderBuddy today and experience the ease of premium vehicle import services.
Exploring? Get a free quote by visiting our online import quote calculator.
Ready to import? Call us at 1.866.441.2161 or email us at [emailprotected] to get started!
Frequently asked questions:
Q: How do I make sure my vehicle complies with all Government Agencies?
Ensure compliance with all relevant Canadian and U.S. government agencies during the import process. This includes: Transport Canada/ the Registrar of Imported Vehicles (RIV), Canada Border Services Agency, Canadian Food Inspection Agency, Environment and Climate Change Canada, and U.S. Customs and Border Protection.
Transport Canada / RIV maintains a list of vehicles eligible for import. Prior to purchasing a vehicle in the U.S., confirm that it is on this list. The criteria include various factors like vehicle age, electronic immobilization systems, daytime running lamps, and outstanding recall notices. It’s essential to contact vehicle manufacturers directly for the latest recall information as per Transport Canada’s requirements.
Imported vehicles must meet Canada’s rigorous safety standards. They are subject to inspection by the Registrar of Imported Vehicles (RIV), a division of Transport Canada. It’s important to note whether the vehicle has been modified in any way, as modifications (excluding routine maintenance or general repairs) can affect the vehicle’s compliance with original factory standards, which RIV will evaluate.
Q: What is the Registrar of Imported Vehicles (RIV)?
The Registrar of Imported Vehicles (RIV) is an agency responsible for ensuring that all vehicles imported into Canada meet the country’s safety and environmental standards. It operates under the authority of Transport Canada], and it plays a critical role in the importation process. When a vehicle is imported, RIV oversees the inspection and modification processes to ensure compliance with national standards. This includes managing paperwork, coordinating inspections, and providing guidance to importers on necessary modifications and steps. The RIV ensures that all imported vehicles are safe and legal to drive on national roads, protecting both the vehicle owners and other road users.
The process of paying the RIV registration fee involves several steps. Be sure to check if your vehicle qualifies for any exemptions on the fee.
Q: Does the age of my vehicle matter?
Yes! The year of your car being imported from the states does matter. Federal inspection is required on vehicles less than 15 years old, in order to ensure that the car meets Canada’s safety and legal requirement. For more information, see Transportation Canada and Registrar of Imported Vehicles.
Q: What documentation will I require?
Proper documentation is critical. This goes beyond having a bill of sale. Required documents include:
- Bill of Sale
- Vehicle Title
- A recall clearance letter
- A manufacturer’s statement of compliance
- See examples here
Q: Can I import a into Canada Vehicle Temporarily?
Yes! Visitors, tourists and temporary residents can import vehicles temporarily into Canada, as well as Canadians who rented a US vehicle and brought it across the border. Vehicles that don’t satisfy Canada’s safety measures can be temporarily imported by completing a special import Declaration. Vehicles that are imported temporarily are also exempt from needing RIV registration, so long as it’s used by temporary residents, diplomats or Canadian or US armed forces.
