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Detailed Guide to Importing a Vehicle Into Canada

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Old 08-16-2007 | 10:05 PM
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Default Detailed Guide to Importing a Vehicle Into Canada

USE AT YOUR OWN RISK

This guide can be used by anyone but leaves out PST because it was intended for Albertans. Just keep that in mind.

Compiled and arranged from various sources, on and off of RFD, this guide should give you practically all the information you require to make your next car purchase from the US instead of Canada. According to the Globe and Mail, car imports from the US were up 50% in 2006 compared to 2005.

The process of vehicle importation is quite easy. The instructions below explain how to purchase your next vehicle in the US instead of Canada – enabling you to save thousands (in many cases, anywhere from $8,000 to $25,000 – or upward of 20-30%). Generally, the more expensive the car you’re buying, the more you save – particularly when the price in Canada is above $25,000 for the vehicle you’re interested in. The market for importing cars and re-selling them is so lucrative that some people are doing it as full-time jobs.

Originally, I made this guide for my own purposes. I thought I would share it with you all. I would love to credit all the people who contributed to this, but there are too many of you. So, thank you to all of you! Sorry for any copyright infringment, lol.

I personally wrote very little of this guide. Again, I organized it for my purposes but decided to share it since the compilation work took quite long.
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Good to Know Before Finding the Car You Want to Purchase
Remember, you do not have to pay any sales taxes on the car in the State of Washington: http://www.leg.wa.gov/pub/billinfo/2.../2158-S.SL.pdf

Sales taxes on vehicles also will not apply for you in many other US states (including New York, Oregon, etc.).

Note: To make everything easy, I recommend not try trading-in a vehicle to a US dealer. It’s way too complicated – so sell the vehicle in Canada privately instead. Also, if you’re going to buy from a US dealer, it's easiest to pay for the vehicle entirely in lump-sum cash.

No duties at the border are paid on the vehicle purchased in the US unless it does not have have sufficient "North American content" - that is, parts/components made in North America. Most cars made in North America meet the content rule but some may not. So, if your NA made car draws Duty, you'll know why.

It’s a vehicle made in North America if it has a VIN that begins with a 1, 2, 3, 4 or 5.

1, 4, 5=USA
2=Canada
3= Mexico
J=Japan
W=Germany
K=Korea

Vehicles manufactured outside the US are assessed a 6.1% duty fee.

At least the following new vehicles are manufactured in North America:

Acura MDX - Alliston, Ontario
Acura RDX - Marysville, Ohio
Acura TL – Marysville, Ohio
BMW X5 – Spartanburg, South Carolina
BMW Z4 – Spartanburg, South Carolina
Honda Accord – Marysville, Ohio
Honda Civic – East Liberty, Ohio
Honda Element – East Liberty, Ohio
Honda Odyssey – Lincoln, Alabama
Honda Pilot – Lincoln, Alabama
Mercedes-Benz M-Class – Vance, Alabama
Mercedes-Benz R-Class – Vance, Alabama
Mazda 6 – Flat Rock, Michigan
Mazda B-Series – Minneapolis, Minnesota
Mazda Tribute – Kansas City, Missouri
Hyundai Sonata – Montgomery, Alabama
Hyundai Santa Fe – Montgomery, Alabama
Infiniti QX56 – Canton, Mississippi
Isuzu Ascender – Moraine, Ohio and Oklahoma City, Oklahoma
Isuzu i-Series Pickup – Shreveport, Louisiana
Lexus RX330 and RX350 – Cambridge, Ontario
Mitsubishi Eclipse – Normal, Illinois
Mitsubishi Endeavor – Normal, Illinois
Mitsubishi Galant – Normal, Illinois
Mitsubishi Raider – Warren, Michigan
Nissan Altima – Smyrna, Tennessee and Canton, Mississippi
Nissan Armada – Canton, Mississippi
Nissan Frontier – Smyrna, Tennessee
Nissan Maxima – Smyrna, Tennessee
Nissan Pathfinder – Smyrna, Tennessee
Nissan Quest – Canton, Mississippi
Nissan Titan – Canton, Mississippi
Nissan Xterra – Smyrna, Tennessee
Saab 9-7X – Moraine, Ohio
Subaru Baja – Lafayette, Indiana
Subaru B9 Tribeca – Lafayette, Indiana
Subaru Legacy – Lafayette, Indiana
Subaru Outback – Lafayette, Indiana
Toyota Avalon – Georgetown, Kentucky
Toyota Camry and Camry Hybrid – Georgetown, Kentucky
Toyota Camry Solara – Georgetown, Kentucky
Toyota Corolla – Fremont, California
Toyota Sequoia – Princeton, Indiana
Toyota Sienna – Princeton, Indiana
Toyota Tundra – Princeton, Indiana
Toyota Tacoma – Fremont, California

1. Double-check that the car you are going to purchase is permitted in Canada:
http://www.riv.ca/english/US_vehicle_admissibility.pdf

2. As of March 20 2007, if you import a big V8 vehicle (or any "gas guzzler" as defined by the RIV), you can pay up to $4000 in extra "green levy" fees. This charge will be part of the fees you pay to Canada Customs (which you will see later on in these instructions). For more info: http://www.riv.ca/english/07.03_New_Green_Levy.pdf

For imported vehicles, the tax will only apply to automobiles put into service on or after March 20, 2007. An automobile is considered to be put into service at the earliest of:
• the date the automobile is registered with a motor vehicle authority;
• the date it is plated;
• the date on which the automobile’s warranty has been put in place; or
• the date the automobile is appropriated by a dealer for their own use.

3. Check that the warranty for the car is also valid in Canada by calling the US side of the manufacturer and asking how the vehicle warranty would apply if you had to immediately move your American vehicle to Canada (due to possible relocation for a job, for example). If warranty coverage is unavailable in Canada, you can get a third party warranty from http://www.ensurall.com

Keep in mind that, even if you have to pay for a third party warranty, you are still saving thousands of dollars in many cases.

Canadian warranty status of new cars imported from the USA:
• BMW: Coverage in Canada for the vehicle warranty but not for maintenance that includes engine and oil services.
• GM: No warranty for first 6 months after the import is made. Must be brought back to U.S.
• DaimlerChrysler: Only if a U.S. owner is on vacation in Canada at time of it needing service. Even a U.S. citizens permanantly moving here is not covered.
• Ford: Coverage in Canada but only as stated in U.S. warranty booklet.
• Honda/Acura: Only for U.S. citizens who move to Canada.
• Hyundai: Fully transferable.
• Nissan/Infiniti: Conflicting reports. Some say warranty only applies if vehicle is registered in the US for at least six months. To confirm, call Nissan USA (1-800-NISSAN-1) if purchasing Nissan, and Infiniti USA (1-800-662-6200) if purchasing Infiniti.
• Subaru: Full Canadian warranty applies but works through a reimbursement scheme (you pay here, send invoices to Subaru USA and get reimbursed accordingly)
• Toyota/Lexus: Full Canadian warranty applies, but they do not encourage people to cross border shop.

Be sure to call the manufacturer yourself and double-check the above information (as it applies to you) before selecting the vehicle you will purchase. You may even want to get a fax or some other official letter acknowledging what the warranty status on your vehicle would be. Also, be sure to check this thread.


Making the Deal
1. Identify prospective dealers and e-mail their Internet Sales Managers. State what you want to buy, that you need temporary tags, and that you will not pay state tax (because you will be registering the vehicle in Canada). Also state you will make a deposit by credit card and wire the full amount before picking up the car. Be fully open about your intentions – some will say they can’t sell without charging state tax (and offer to let you choose the state if you can provide an address), while others will accommodate you.

It is definitely easier to purchase a Toyota if you have use of a US address (relative, friend, mail forwarding firm).

Dealerships willing to sell to Canadians can be very difficult to find as many are not willing to go through sales due to company-internal pressures. These Toyota dealers in Washington have smoothly sold to Canadians, however:
http://www.magictoyota.com/
http://www.toyotaofkirkland.com/
http://www.toyotaoftacoma.com/

Please be aware that these dealers may have succumbed to internal policy pressures by now and may no longer sell to Canadians. Call to confirm.

2. Negotiate price/package with chosen dealer (usually starts by e-mail and ends by phone). For new vehicle prices in the US, check: http://townhall-talk.edmunds.com/WebX/.ef17997/

3. Pay deposit by credit card. Get VIN Number. Get bank info for wire transfer of payment (bank, branch, a/c, FAST #; dealer accounting dept. usually has this info, and sales manager likely won’t). Some dealers may want to fax you the Buyer’s Order, for you to sign and fax back; others are happy with your credit card deposit ($500 should be sufficient). Watch the exchange rate (it can vary by 0.5% during the day) and service fee (0.5- 2.5%); my credit card charges 2.5% above the official exchange rate while my Investment account only charges 1% (for $25K or more); the best I’ve seen on the Internet is 0.5% (the person had access to the exchange service used by his firm).

For Toyota, you can negotiate a good Extended Care Agreement price (about 40% discount). Often the Finance or Payment person looks after the ECA plans and he/she is the one you need to identify and negotiate with. Discounting is standard, and list/discount info is available on the Internet.

Allow a few business days for the wire transfer to arrive (it won’t be instantaneous!).

fter You’ve Arranged the Deal
1. Steps 2-11 in this part should suffice for your vehicle importation. As a precaution, I highly recommend that you print, read and understand everything here (and keep a copy to take with you along with this entire document): http://www.riv.ca/english/html/how_to_import.html

2. Have the dealership fax a Manufacturer State of Origin or Certificate of Origin (MSO or CO) to US Customs 72 hours (no less than that - this is extremely important) before your arrival at the border crossing. If the vehicle is used, you will need to fax the Title (produced by the DMV the first time the car was registered) instead of the MSO or CO.

Call US Customs after the fax has been sent to ensure that the fax is fully legible and does not need to be re-faxed.

3. Obtain a typed letter (with letterhead) from the manufacturer (not the dealership) stating the car (including the specific VIN) does not have a Recall Pending. This paper explains that there are no outstanding recalls associated with your vehicle which has the VIN # on it too. If this paper states that there are outstanding recalls and isn't clear, you'll have to fix those deficiencies in order to complete and pass Federal Inspection in Canada for a new car. Check for liens too. For further information: http://www.riv.ca/english/html/recall_clearance.html

Also check here for contacts for recall letters from other manufacturers: http://www.riv.ca/english/html/recall_contacts.html

4. The dealer will provide you with a temporary transit plate stuck on the rear window. You may need a Temp plate from State to State if you're importing a vehicle farther from the border States. Before leaving dealer with vehicle, check that you have title document (original Certificate of Origin, transferring ownership to you), temporary registration and temporary state license plates, and sales receipts. The vehicle should have the manufacturer’s compliance label on the driver’s doorframe (has date of manufacture, manufacturer, statement of compliance with regulations, etc.).

5. Call your insurance company and provide the VIN number to arrange coverage. If you give the insurance company the VIN # of the car you're going to buy, you can ask them to send you a fax of the insurance form so you have proof that you have insurance. If you do not do this and you get stopped by police, you will at the least get a fine for driving without insurance. TD Auto will insure your new car no problem but you have to tell them the VIN I believe before you just buy and drive.

6. You will arrive at the border with your new car. First, park the car and bring in all documentation including proof of insurance, original ownership and recall letter. I walked in and went to the counter and told them that I was exporting a vehicle and showed them the paperwork. They looked at the car, stamped my ownership, checked the VIN to the car and I was out the door. For a used car, they might inspect it a little more. It took me less than 10 minutes. This is where the paperwork that the dealer put together came in handy. No scrummaging through papers, everything was in order.

7. After dealing with US Customs at the border, you now have to go through Canada Customs. At the booth, I told the officer I was importing a vehicle to Canada...gave me a yellow slip and told me to see the officers in the building. Parked the car again and went to the desk and showed them all paperwork again. They will also fill out "FORM 1" which you'll need later on. Showed them the Bill of Sale and they converted the amount I paid US into CAD dollars. From there, the US amount converted into CAD, I was charged the GST (6%). If it's a used vehicle, declare the value and don't under declare the value of the car. Canada Customs has the ability to seize your vehicle. The vehicle (and all goods in it) will be seized, you won't be charged/arrested under the Customs Act unless the officer feels you have hindered them. You will however have committed an offence under the Custom Act. Oh yeah...there is a import duty fee of 6.1% if the vehicle isn't made in North America and $100 A/Conditioning Tax. The RIV Importation Fee is now $206.70 and only credit card is accepted, NO Interac. This is because the $206.70 goes directly to Transport Canada, the funds do NOT go to the CBSA. Another 15 mins. After all is paid, you're good to go. Again this is where the paperwork in order came in handy. I've read horror stories of missing 1 vital piece of information and being turned back and refused entry.

8. Drive to your home in Canada and park your car. Email or fax your MSO/CO and recall letter to the RIV and they will process your application and email you Form 2 the same day IF you call them with your case # (which is affixed to the top of Form 1) right away. Otherwise, it can take 3-10 business days.

Form 2, once you've received it, will enable you to bring the vehicle to Canadian Tire to have the vehicle inspected to meet Canadian Standards (i.e. bumpers, Daytime Running Lights, Child Tethers, Airbags). Bring Form 2 to CT for inspection. They will stamp your Form 2 and ask for the "Recall Clearance Letter" as mentioned before, and fax it to the RIV.

There must be metric markings on the speedometer, but it doesn't mean the speedometer must be replaced even though miles per hour are more prominent on vehicles manufactured in the U.S.

9. Obtain proof of insurance for your new vehicle through your auto insurer.

10. Present stamped Form 1, Certificate of Origin, and Canada Customs payment form to provincial licensing authority for registration & plates. Pay to have the car registered and plated. You can use the Temp plate for the time being, but I don't suggest it as it is a TEMPORARY PLATE. You don't need an Emissions test if it's a new car.

When I went to register the car in Alberta, they tried to tell me I needed an out of province inspection. No, I didn't. I explained very firmly that this was a brand new car and therefore an inspection was not needed. They told me that I could only avoid the inspection if I had certain paperwork that the manufacturers provide to Canadian dealers. I forget what this is called, but the US issues the Certificate of Origin instead. As long as you have the MSO/CO, you don't need the inspection. Be firm, and go to another registry office if they don't budge.

11. After that's all done, confirm with the RIV that they will send you a Canadian Certification Label to affix to your door sill (usually comes within 10 business days).


General Information Site
http://www.importcartocanada.info

Maybe a mod or admin can make a stick out of this
Old 08-16-2007 | 10:30 PM
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Outstanding post .. someone should sticky this since it is about the most common asked question these days.
Old 08-17-2007 | 10:36 AM
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+1
Old 08-17-2007 | 09:10 PM
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Very good write up. I just did it myself a couple of nights ago. My car was older than 15 year so things in the original post to not apply to me. Here are a few tips I learned at the border.

-when faxing the title to the US border make sure you keep the fax transmittal page as proof you faxed the title. US customs can lose your fax, when you show up at the border and don't have proof you faxed them the title they can make you wait the 72hrs.....ask me how I know.
-Print off the add for the car, have receipts, copies of cheques, money wires...etc. Anything to back up your claim as to how much you paid for your vehicle.
-Call your credit card company ahead of time and tell them you will be traveling to the states. If you don't they may freeze your credit card if they see a random purchase in the states somewhere where you have not been. You might find yourself at the Canadian Customs at 2am trying to pay for the taxes with a visa that won't work. Most credit card phone centres aren't open at 2am.....again, ask me how I know.
-At the border, dress appropriately, be polite, and above all be non-confrontational. If a problem arises be cooperative and try to resolve in a calm manner. This will go a long way. I saw a lot of other people dressed like bums being very argumentative with the US customs people. Guess how long they had to wait at the border. On the other hand, the customs guard that dealt with me was very helpful, he spend 20 min looking for the copy of my title and when he couldn't find it he processed the title on the spot, he could have easily told me to just come back in 72hrs.

That's all I have. Anyone is welcome to PM me if they have questions. I imported a vehicle that was older than 15yrs so the RIV program does not apply to me.
Old 08-18-2007 | 03:00 PM
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On point #3 DO NOT apply to the manufacturer for the recall letter.

In some cases they will state in said letter that the car requires certain other modifications that are not actually required to legally license the car. Cash grab extraordinaire........

Get the dealer to print out the computer screen from the manufacturer's service system with the page that shows the status of recalls/campaigns and get them to put their dealer stamp on this. This also acceptable to RIV and the CBSA.

If you are not buying from a franchised dealer.....perform your PPI at one and they will also give you this form.
Old 08-18-2007 | 11:07 PM
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As of 2 weeks ago, the screen print, having it as part of the PPI to check for recalls no longer work. The only thing they will accept is a typed letter from a Porsche dealer on their letterhead, or a letter from PCNA.
Old 08-18-2007 | 11:10 PM
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Well.......I just had 4 cars arrive literally this week and it worked mighty fine.

http://www.riv.ca/english/html/recall_clearance.html

I bring in 4-8 US cars a month.....my registered importer who does everything for me and other dealers, processes over 100 a month.....Carlos Pineda, the chief technical inspector at RIV is on my speed dial. I know about stuff before most retail people do.

Trust me. It is OK. I am not being argumentative here....just pointing out what I know is true.

Last edited by YYC930; 08-20-2007 at 01:49 PM.
Old 08-18-2007 | 11:30 PM
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This is very helpful. Thank you.
Old 08-21-2007 | 10:54 PM
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YYC930, I know you're not looking to cause trouble. Everybody knows that border service officials, etc. will apply rules at their discretion. I just know when I went to certify my car in Toronto, I was told by the inspector working at the time that only official letters from dealer or manufacturers will do. In Calgary, your office will interpret the rules as to what will be ok.
Old 03-07-2008 | 02:23 AM
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Sorry to ressurect this old thread but I have some questions that aren't covered. This thread and many others like it assume the car has been registered and on the road at some time and that is the plan when it gets to Canada. What about a car that has no title and has never been registered? I talking about importing something like a Porsche GT3 Cup Car - a car that was built for the race track right from the factory and is not legal on the road no matter where you take it. Thus it has no title. I've read the RIV website and nothing in there appears to cover it. I've imported a couple of personal vehicles before but never something that is basically an off road car. Is the importing of something like this the same as importing parts? Or do you have to get a title from the state the car is currently in before shipping it up? Anyone here done it before? I know guys who imported older vintage race cars but usually they started as street cars, had a title and were imported just like you would any other car. A new Cup Cup car is a different animal all together.
Old 03-07-2008 | 05:47 PM
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I just finished importing a used BMW(325CI) into Canada. Much more hassle than when I imported my 993 a few years ago. Must have a letter from BMW to clear cistoms at the borger ($350 from BMW. Also RIV only accepts no recall letter from BMW Canada(no more from BMW dealers in the US.($500 from BMW) also only will BMW give you the no recall letter after THEY reprogramme the Daytime running lights($200). Believe me I tried everything to get around the above bur BMW and RIV seem to be conjoined. I am just writing this in case anyone out there wants to do the same. All this came up after I bought the car, rather discouraging but I guess that was the purpose of this exercise. This is one way to help them sell cars coming off lease with high residuals. I can only hope Porsche and Ferrari dont pick up these Gestapo tactics
Old 03-07-2008 | 05:58 PM
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here you go, Andrew

http://www.ctv.ca/servlet/ArticleNew...8?s_name=Autos
Old 03-07-2008 | 10:10 PM
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Webbie - great find. When I asked RIV why a letter from an American dealer wouldnt do and why I couldnt change to DRL myself the answer was a brisk "new policy" It sounds like someone at RIV is gonadally deficient I will see about joining the class action suit, I am so pissed off.
Old 03-07-2008 | 10:18 PM
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Originally Posted by SoloRacer
Sorry to ressurect this old thread but I have some questions that aren't covered. This thread and many others like it assume the car has been registered and on the road at some time and that is the plan when it gets to Canada. What about a car that has no title and has never been registered? I talking about importing something like a Porsche GT3 Cup Car - a car that was built for the race track right from the factory and is not legal on the road no matter where you take it. Thus it has no title. I've read the RIV website and nothing in there appears to cover it. I've imported a couple of personal vehicles before but never something that is basically an off road car. Is the importing of something like this the same as importing parts? Or do you have to get a title from the state the car is currently in before shipping it up? Anyone here done it before? I know guys who imported older vintage race cars but usually they started as street cars, had a title and were imported just like you would any other car. A new Cup Cup car is a different animal all together.
I am sure there is a sticker on the car that it's for off-road/racing use only.
That should get the car into the country. If it does not, there's someone in Calgary who imports Porsches into Canada who can help you out.
Old 03-08-2008 | 03:08 AM
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Originally Posted by fdss
I am sure there is a sticker on the car that it's for off-road/racing use only.
That should get the car into the country. If it does not, there's someone in Calgary who imports Porsches into Canada who can help you out.
There are several people who import Porsche's into Canada - however they do so as part of their car sale business so I find it doubtful that they would be inclined to help someone trying to bring one in themselves. I have several contacts with customs brokers that I haven't called yet but thought I would check here first to see if anyone has brought something similar into the country.

I know there might be some other things to consider - like finding out if the Halon fire system in the car has to be removed before bringing it up here.



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