Importing a Vehicle into Canada

Vehicles are more complex to import into Canada than other goods. Before you purchase a car or truck in the USA, it’s worth familiarizing yourself with the import process. These guidelines apply to any self-propelled vehicles, including heavy machinery.

Your first step should always be to make sure the vehicle you want to buy is admissible to Canada. You can check admissibility on the website of the Registrar of Imported Vehicles. Ideally, it’s worth checking this before you make any purchases.

You’ll also need to decide how to transport the vehicle into Canada. You can drive the vehicle yourself or hire a commercial carrier company to deliver it to you. Some carriers like Canuck Towing specialize in this exact service. If you plan to bring the vehicle yourself, you should contact ICBC to find out about temporary insurance for the trip.

In addition to being imported through CBSA, all self-propelled vehicles also need to be exported from the USA through the Automated Export System (AES). Your customs broker can usually handle the AES filing for you, or, if you are using a commercial carrier company, they may offer to do the AES filing. You should determine who is responsible for your AES filing before the process starts.

Depending on what type of vehicle you are purchasing, it  may need to be entered into the Registrar of Imported Vehicles. The RIV entry incurs an additional charge, and can usually be handled by your broker as part of the import. Some vehicles will be exempt: vehicles older than 15 years, or vehicles that are specifically manufactured for the Canadian market, are two examples of units that would be exempt from entry in the RIV.

Before your import can proceed, you’ll have to ensure that your customs broker and carrier have all the documentation they need. Your broker will need scans of the bill of sale and title (front and back, if they are doing the AES filing). The original title must travel with the vehicle when it crosses the border.

In addition to the charges for freight carriage, customs brokerage, AES filing, and the RIV entry, there are a number of other possible charges that are specific to vehicle imports.  Some examples include:

The luxury tax applies to vehicles over $100,000 CAD;

The green levy or excise tax applies to fuel inefficient cars;

There is a $100 excise tax on air conditioned vehicles;

Customs duty applies to many vehicles manufactured outside of the USA, usually at a rate of 6.1%.

Customs will also collect the 5% GST and any applicable provincial taxes. The cost of your import will depend on the model, price, and age of your vehicle, among other factors, and your customs broker is usually the best person to give you an estimate.

Recall clearance letters are not required at the border but proof that there are no recalls on your vehicle must be submitted to the RIV in order for them to release your inspection form. More information on recall letters and how to submit them is available on the RIV website.

Once the vehicle has crossed the border, you will need to take it for inspection, usually at a Canadian Tire location. The inspector there will stamp the inspection form that was provided by the RIV. You will need to present that stamped form to ICBC in order to insure the vehicle.

The vehicle import process can seem daunting, but a good customs broker can walk you through the whole thing from beginning to end. The RIV offers helpful personalized checklists that can be printed off to keep you on track. The RIV website is a great resource for importers, with information about import requirements, exemptions, the cost of importing, inspection requirements, and general information about importing vehicles.

And of course, your customs broker will be able to answer any questions you have!

By Robin Smith, M.A., CCS.

Robin is a trade industry professional based in Victoria, BC.

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