** We do not provide import/export services. This guide is for information only. **
If you live near the Canadian border of the United States, you’ve probably been tempted to purchase a used car or truck and bring it over here. Maybe you’re a snowbird that has a winter home and you want to keep your car in the States full-time, or perhaps you’re eyeing those Nissan Skylines and Acura-badged Honda Civics that are unheard of in the U.S. Either way, legally importing a vehicle from Canada can be a rewarding or frustrating experience depending on how prepared you are.
Except the R34 Nissan Skyline GT-R, of course. That legendary car has its own story.
I am not going to lie to you – there are a lot of steps to take when importing a vehicle from any country. You will need to be organized and prepared to jump through some hoops. However, if you find the car you want at an affordable price, it might be worth the time to make it happen.
In this guide you’ll learn all about importing a vehicle from Canada: what cars are eligible, the paperwork involved, and most importantly, how much it costs to do it without the help of a specialist company. We broke it down into 7 easy steps listed below.
What Cars Are We Talking About Here?
There are two primary ways to import a car to the United States. If a car is more than 25 years old, it can be legally imported to the United States and registered for road use under the provisions of the 25 Year Rule. If a car is less than 25 years old but has historical significance and was never sold in the United States, it could be eligible for import and limited road use under the provisions of the Show and Display Rule.
This guide describes how to import and register cars from Canada that are less than 25 years old and are ineligible for Show and Display.
Why Not Just Drive One Over?
Why go through all this nonsense instead of just bringing the car over and crossing your fingers? If you drive back and forth across the Canadian border on a regular basis, it’s important to note that your Canadian-registered vehicle is only legal in the United States for one year. After that, authorities can seize it for myriad reasons and either deport or crush your beloved car without a second thought.
To avoid the car being confiscated, finalize the import process of your vehicle within 365 days after the car’s arrival in the U.S from Canada.
One Thing Makes Importation Much Easier
If the kind of vehicle you want to import was also sold in the United States, you have a leg up.
Take a moment to look at the car’s manufacturer label. GM, Chrysler and Ford all have plants in Canada that produce vehicles which are later sold in the United States. For example, Ford produces the Flex and Edge vehicles in Ontario. In addition, GM produces their Camaro and Impala also in Ontario as well.
Even though American automakers have Canadian facilities building cars for the U.S. market, that doesn’t mean all these cars are conformed to the US market. The manufacturer’s label needs to be inspected if you want to determine whether the vehicle is valid for U.S. distribution.
You’ll find this label in one of a few spots. Look in the door latch post, near the door’s edge, or at the hinge pillar. If the label says it’s made for United States sale, you’re going to have a slightly easier go of things. Slightly.
The Standard for Federalizing a Used Car from Canada
Not all Canadian vehicles meet the standard of the National Traffic and Motor Vehicle Safety Act or the Environmental Protection Agency’s emission standards. Thankfully, the rules aren’t overly strict, and the process of meeting them is called federalization.
Canada’s motor vehicle safety standards closely resemble our Federal requirements. That’s why the NHTSA issues blanket eligibility covering many Canadian-certified vehicles bound for the U.S. market. Before you get your hopes up, there are some discrepancies between the two. If the Canadian-certified car or truck was manufactured before the FMVSS requirements changed, for example, then the vehicle must be updated to meet U.S. standards.
Often this simply involves making basic adjustments or adding basic things, but since this conversation is specific to each model, we aren’t going to get into detail here. Look into forums and groups for importing your model of car – it’s unlikely that you are the first to do it.
As a little extra peace of mind, you might be happy to know that many of the vehicles north of the border are going to meet our government’s standards, but you should still research the specific vehicle at the beginning of the importation process to save yourself time and headaches.
Can I Legally Import a Vehicle from Canada?
Absolutely! Importing vehicles from Canada is permitted by any person looking to use the vehicle for personal use. It must comply with the Federal Department of Transportation safety standards and U.S. Environmental Protection Agency emissions standards. If it doesn’t meet those already, then a DOT Registered Importer needs to import the vehicle instead. You can find these in many major cities.
Another thing you’ll want to do in the beginning is check to make sure the car has no liens, no title problems, and isn’t stolen. Just imagine the headache of paying for a used car and then not being able to get it across the border!
Thankfully, we can help with this process. Just use our handy VIN check to make sure the car is in order before you buy it.
How to Import a Vehicle from Canada in 7 Steps
After conducting the research we discussed and verifying your vehicle is eligible for importation, go to Canada and buy the vehicle. Make sure you get a Bill of Sale showing the VIN with your name as the purchaser. You can coordinate with a person or company in Canada to do these steps for you if traveling there is an inconvenience.
You will also need the Manufacturer’s Statement/Certificate of Origin or the title and registration.
Go ahead and obtain a temporary license plate and an insurance card from the Province in which you make the purchase. You can often extend your U.S. insurance coverage to cover you in Canada as well.
You will have to pay a Goods and Services Tax (GST) on the car, but you should be exempt from Provincial Sales Tax (PST) if you aren’t a Canadian resident.
Have the car thoroughly cleaned and steam-sprayed prior to heading to the border. The U.S. Department of Agriculture wants the undercarriage completely free of any foreign soil, and you never know what the previous owner did inside.
Get your documents in order before attempting to cross the border. You’ll have to fill out form CBP 7501 and some other customs paperwork declaring your possessions, including the car. During that time, the customs officials will take time to inspect your car and match it up with your paperwork. Expect to be there for at least thirty minutes.
Pay all associated fees. When importing a car from Canada, you will be required to pay fees you may not have encountered before. The total cost will vary depending on the model of vehicle you are importing.
What is the Total Cost to Import a Vehicle from Canada?
With all this talk of taxes, fees, and duties, it’s clear that this isn’t a cheap process. Thankfully, importing a vehicle from Canada is similar cost-wise to buying one in the States. A detailed breakdown of these fees can be found on the United States Customs and Border Protection website.
Exemptions: There are two main sources of financial relief that come into play.
As a U.S. citizen, you can apply a $400 Customs Exemption at the time of border crossing, so long as you’re driving a car back that you bought during that specific trip. Each family member riding in your car can, too, providing they are also U.S. citizens.
As a U.S. resident, you will receive a $10,000 Value Exemption on the vehicle. That means if the car is worth $15,000, you’ll only pay Canadian taxes on $5,000.
Import Duties: Vehicles made in Canada or the U.S., or ones imported for personal use, are usually not subject to duties (international trade taxes). However, foreign-made cars and those imported for sale sometimes are. For these you will likely pay the following upon importing a vehicle from Canada:
Autos: 2.5%
Trucks: 25%
Motorcycles: up to 2.4%
Gas Guzzler Tax: Some imports will be hit with the infamous “gas-guzzler” tax. This tax may be required based on the vehicle’s combined EPA fuel-economy rating.
Other Fees and Taxes: There will be other vehicle-specific fees, such as the Air Conditioning Tax for cars with A/C (yes, that’s a real thing) that can add substantial cost to importing a car from Canada.
If you import from Nova Scotia, Newfoundland, New Brunswick, British Columbia, Labrador or Ontario, you’ll also have to pay the provincial sales tax when you cross the border.
Other fees may apply based on the model of vehicle in question.
Once You Get Home
You have some further steps to take once you get back to the United States.
Insure the vehicle in the U.S.
Take your paperwork to the State DOT to register your vehicle. Prepare to pay the state taxes and applicable fees. You may also need to get an emissions test before registration.
In a few weeks, the tags and plates for the vehicle should arrive.
Too Much Work?
If all of this sounds like too much to deal with, you have two other options. The first is to simply purchase a car that’s already been imported into the United States. You know that these cars meet our country’s legal standards and you won’t have to travel over the Canadian border or deal with customs, duties, and fees.
The other option is to use an importing specialist to walk you through step by step. These businesses understand how to import a vehicle from Canada, and they can help you research the safety standards needed for a motor vehicle and enable you to work with the National Highway Safety Administration to smoothly import a vehicle from Canada or anywhere else. Their services are not cheap, but they may be worthwhile.
Importing a car from Canada is something you can absolutely do yourself without professional help, but it never hurts to have a friend on your side.
You Still Need a Title and License Plates
Dirt Legal provides titles, license plates, and registrations for legally imported vehicles through our Imported Vehicle Titling Service as well as domestic vehicles and just about anything else with wheels. Pair with our LLC Formation Service for a tax-free experience and add our Automatic Registration Renewal to keep things hassle-free and eliminate the DMV altogether. We’re here to give you peace of mind whether you’re importing a car or buying one just down the street. Click the button below to learn more.
** We do not provide import/export services. This guide is for information only. **
We are not attorneys. This article is not legal advice. Cover image source
At any given time, there are at least 100,000 U.S. troops stationed overseas. They rent and buy houses, live in the community, and of course buy cars and motorcycles. The problem comes when their time abroad comes to an end and they have to go back stateside.
The question is: as a military service member stationed abroad, how do you get your car stateside legally?