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Smart Shopper Importing Car into Canada from US
4513 messages, Last post on Dec 02, 2009 at 8:40 PM
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Replying to: tonytan1999 (Mar 19, 2006 9:03 pm) 1. We bought the car from the major Cadillac dealer in Birmingham...we phoned ahead and told them what we were looking for...they even offered to pick us up at the airport. The car we bought had Alabama plates on it. We left them on and didn't take them off until we screwed on the Ontario plates once we got back to Ontario. (the Alabama plates now adorn the inside of the outhouse at the cottage up North!) 2.The bill of sale from the dealership had all the necessary stuff saying who owned the car. 2b. We had no residency in Alabama....Dad just had his own residency and`license information. 3.Dad got some kind of letter from his own insurance company in Ontario showing the Cadillac was covered for the journey home from Alabama. 4.I don't recall anything being done at the U.S. customs. We told them we had bought the car in Alabama and were bringing into Canada where we lived. They just waved us on through to the Canadian side...this could be VERY different now though, so you had better check thoroughly. 5. The car was always in my Dad's name. We had to pay 7% GST at the Canadian border and 8% Provincial Sales tax when we got our license plates in Ontario. We did this deal in January...drove home through a huge snowstorm...a very long two day drive. The guys at the Cadillac dealership were concerned about us enough that they even phoned home to Dad's home in Ontario to see if we made it OK...pretty classy! They also had a great sense of humour....told us that his car "had never been driven up a hill or against the wind"! Do your homework before you go....a few phone calls to customs should clarify things and avoid hassles. Doug |
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Does anyone know the procedure for buying a new vehicle from Michigan and exporting it to Canada without paying the Michigan sales tax? I am interested in purchasing a new Acura or Honda but was told I would have to pay the Michigan sales tax unless the dealer delivered the car to the border? Does anyone have experience with this and can comment? Are there any differences between Michigan and New York with respect to state sales tax? Also, if the car is delivered by the dealer to the border, where will I get the temporary permit to drive the vehicle on the roads in Canada? Is this given to me at the border when I pay the Canadian taxes and appropriate registration fees? I am concerned if they deliver the vehicle that I will not receive the appropriate permit to drive the vehicle to my own ministry of transportation office to get my new license plates. Finally, while according to the Cdn government information there doesn't appear to be a problem in importing the MDX or Pilot, does anyone know any specifics about what modification would be required? Thanking you in advance for any advice, Paul |
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http://www.riv.ca.com/ has a list of the approved US vehicles that can be imported into Canada along with other info you need............... BTW: You shouldn't have to pay Mich. sales tax because you are not registering it there but in Canada..... |
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Replying to: geo9 (Mar 21, 2006 8:24 am) I went to the RIV website and all it says is that all Honda/Acura vehicles can be imported. I assume I can call RIZ or Canadian Tire and find out the specifics. I am concerned about the Michigan sales tax, from the code: 8-4.9 When going to Canada or Another Country. If the purchaser is taking delivery of the vehicle in Michigan and transporting in to Canada or another country, 6% Michigan sales tax is due. If the vehicle is being delivered by the dealer or dealer’s representative outside of the State of Michigan, sales tax is not due. (See Sections 8-5.10 and 8-5.11 and Chapter 3, section 3-9 for more information) I am concerned if I truck the vehicle across, are there any issues with the agent showing up at either border with my purchased vehicle. I know I would accompany them, but this may become more complicated. Could I get a dealer's plate and then drive it to Canada this way myself? Has anyone gone through this experience? plesome
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Replying to: plesome (Mar 21, 2006 9:20 am) the vehicle in Mich. you would have to pay sales tax. It don't work that way in NY ! Call Mich. DMV direct and ask................ Ask about a temp. plate too or use a dealer plate.
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Replying to: plesome (Mar 21, 2006 9:20 am) That being said, to get the car across the border, you will need to first have US customs verify that the car has not been stolen, etc. before allowing it to cross. (This is why you need to fax the paperwork a few days in advance of your crossing, so that US officials can run the appropriate checks.) Canadian customs will not let you import the car unless you present this paperwork from US officials. Re: taking delivery in Ontario or elsewhere in Canada, I would guess -- and this is just a guess -- that it would be difficult to find a dealer who would actually deliver the car to Canada, because the dealership would probably require export licenses, etc.. But rather than worry about it, you could simply ask each dealer whether they can export the car across the border for you, and find out for yourself how easy or difficult this might be. Not sure if this would work, but to avoid the tax, I'd research the possibility of taking delivery in another nearby state, such as Ohio or Indiana, to see if you can avoid the Michigan sales tax. I would research the DMV websites of these other states to see what their rules are re: registration, sales tax rules for cars not being registered in that state, etc. as a possible loophole that might help you to solve your tax problem. But whether this will work, I don't know. |
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Replying to: geo9 (Mar 21, 2006 10:02 am) |
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Hi, When you finally sort things out, could you post your experience. I am also thinking about doing the same but in few months. regards, |
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I am also looking to purchase a new vehicle in the States and bring it across the border. I know the process itself is really quite simple as I just completed it for a new travel trailer I just bought in January of this year. For a travel trailer (which is classified as a vehicle the same as a car), When you cross the border you pay the GST and a fee of about $209 (regardless of the value of the vehicle)and fill out a form 1. You will need a form from the mfg. stating there are no outstanding recalls on the vehicle. Once the vehicle is in Canada you bring it to an inspection station (all Canadian Tires, no cost). They will check for compliance with Canadian standards. A few weeks later you will receive from RIV a letter and a sticker for the vehicle. You can now register the vehicle and pay the PST. Easy and thats it . The only difference that I know of for a motor vehicle is that you have to fax the American Customs 3 days before exporting the vehicle. (who knows why?) My question which I have read conflicting information on is: Can I buy a new car from an American dealer who knows that I am a Canadian. I will have to tell him in order to avoid paying the state sales tax. All exports are sales tax exempt. I DID NOT have to pay sales tax on my travel trailer which I bought from a company in Ohio. Does anybody have a difinative answer or know where I can get it . I tried calling a couple of American dealers and they said they would look into it but have not gotten back to me. If I get this information and if it is positive and I do buy the vehicle I want, I will make a concerted effort to post all my experiences here. Believe me, importing the trailer was a breeze and I saved about $9,5000 plus the GST and the PST I would have paid on the difference. It was well worth the effort. Thanks Mike |
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If you're reading this you're probably already burdened with too much information, well aware of the potential savings, but confounded in procedure and now constipated in the decision. You may have been told that what you are proposing is the acquisition of a “grey-market” vehicle - it is not. Refer to the CBSA website for definition of grey market and you will find that the proposition conforms with the intent of the free trade pact (NAFTA) and is perfectly lawful. To date however, North American dealers (NADA and CADA) have successfully lobbied manufacturers to impose burdens upon consumers and even dealers who venture into this area. If you have not done it, you have to do some reading and consulting first. Reference the following websites and call them, as well as contact your potential U.S. dealer. • http://www.riv.ca/english/html/how_to_import.html (*When referring to the list of admissible vehicles be cognizant that vans and SUV’s are classified as multi-purpose passenger vehicles) • http://www.cbsa-asfc.gc.ca/E/pub/cp/rc4140/rc4140-05e.pdf • http://www.cbsa-asfc.gc.ca/E/pub/cm/d19-12-1/d19-12-1-01-e.html#legislation • http://www.cbp.gov/xp/cgov/export/export_docs/motor_vehicle.xml In summary you must: 1. Determine the warranty ramifications - consult with the Canadian arm of your vehicle manufacturer and outline your scenario (they may chose not to honor it for the first six months or more however I believe Safety recalls have to be honored) 2. Notify U.S. Customs and Border Protection at your port of export and for that matter Canada Border Services Agency (Customs) at your port of import one week in advance of your purchase 3. To save yourself aggravation and qualify for the greatest discount insist on full purchase from the U.S. dealer (no U.S. financing required). If you need and qualify for a new car loan arrange it in Canada. Disclose what you are intending to do to your bank or trust. Confirm the logistics involved in wiring the funds (EFT) from your bank to it’s correspondent bank in the U.S. You want to be sure that everything is in order prior to handing over your funds to the U.S. Dealer. 4. Pay RIV fee ($209 all Provinces except Quebec which is $224) - Arrange CTC inspection within 45 days of import 5. Have the U.S. dealer provide a Letter of Compliance or recall clearance letter. It states whether or not there are any outstanding safety defects on your vehicle and recalled by the manufacturer. The recall letter must come from either the manufacturers head office or authorized American dealer (not re-seller). Contact the U.S. head office of the manufacturer ask if the dealer can issue the same. RIV will only accept a letter is on company letterhead with the manufacturers logo. U.S. dealerships must include address as well as the manager's name and signature. The VIN (17 digit vehicle identification number) must be included in the letter. 6. You will find that generally for an admissible new vehicle to pass inspection, we need: a. Daytime running lights (DRL’s) [Not an issue with current model GM’s. DRL’s should be programmable by any reputable service department of most manufacturers. Arrange it with your US Dealer service dept prior to purchase] b. Metric Speedometer [Metric may already exist on most speedometers. If not, changing it at a Canadian dealer may only cost about $300.00 (they have to input the correct odometer reading pursuant to the Excise Act). Another alternative to pass inspection is “stickers” on your speedometer - Contact the RIV to confirm]. 7. Pay GST (7%) and appropriate PST or HST in Atlantic Canada at the port of entry - reference the Bank of Canada for the foreign exchange rate on the date of sale. 8. There is no duty if your vehicle originated in Canada or the United States. 9. There will be $100 excise tax if the vehicle has air conditioning 10. If they are particularly diligent, you may have to pay CBSA addtionally imposed excise taxes. If your passenger car weighs more than 2,007 kilograms or 4,425 pounds. Multi-purpose vehicles (vans and SUV’s) and station wagons have a greater weight allowance, 2268 kilograms or 5000 lbs. This fee is scaled in increments of 15 Kg but the most you may pay would be about $300 +/- for something as big as a Chevrolet Suburban. Besides those listed above, the websites listed below may be particularly helpful prior to making any future decisions. I just happened across the NAATA.org website today. I have not used their service but understand their mandate is to facilitate the purchase and sale of cross-border vehicles. I question the altruistic intent of a not-for-profit association of vehicle dealers that import and export vehicles across international borders because it seems counter-intuitive to the establishment of an enterprise. The NAATA website does however appear geared to collecting annual fees for membership to full service (typically dealers... I wonder if any Candian dealer exist who will help?) and associates (typically vehicle industry organizations, i.e. freight, customs brokers, and money service businesses for foreign exchange...). So, other than collection membership fees (which are clearly stated), NAATA does not appear to have a hidden agenda. As previously mentioned, I have not used their services and do not know if there is fee to consumer but presume there is not. I anticipate the advantage to NAATA “members” (dealers and broker)is derived in potential business from consumers like you and I, which generates an ethical debate about the true intent of a not-for-profit association. Mission statement aside, my research has uncovered that Brian Osler, the president of NAATA is a lawyer in Ontario, steeped in cross-border vehicle issues and appears to advocate the intent of NAFTA. • http://www.naata.org/ • http://www.naata.org/pdfs/Rip_Off_USA.pdf • http://www.automotivedigest.com/view_art.asp?articlesID=6682 • http://www.canadiandriver.com/news/020206-1.htm • http://www.canadiandriver.com/news/020214-1.htm • http://www.lsuc.on.ca/public/a/member-directory/ Good luck, Canucknuckled
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