Importing a car into Canada — especially from the U.S. — can be an attractive option. However, navigating the importing process of a vehicle requires a thorough understanding of car import laws, including compliance with safety standards, emission regulations, and documentation requirements.
To successfully navigate this process, it’s crucial to be well-versed in the specific requirements and procedures involved. Read on to explore the key aspects of how to import cars into Canada, ensuring you have the information you need for a smooth import experience.
Importing Cars from U.S. to Canada
The U.S. represents a significant source of car imports for Canada. In 2022, the U.S. exported $57.5B worth of cars, with Canada forming the majority of the export destinations at $16.9B (29.3%). This robust trade relationship highlights the significant demand for U.S. vehicles among Canadian drivers, creating a dynamic market for those interested in importing cars from the U.S.
Importing cars from the U.S. offers distinct advantages for Canadians.
- Potential Cost Savings: Currency exchange rates and overall car prices can fluctuate, but cars from the U.S. are generally more affordable than those made in Canada.
- Access to a Wider Array of Vehicles: This includes sought-after models, trims or features not readily available in the Canadian market.
- Access to the Diverse U.S. Aftermarket: Canadians can personalize their vehicles with modifications and customizations from the vast U.S. aftermarket, adding a personal touch.
Process and Requirements for Car Imports to Canada
Importing a vehicle into Canada, similar to importing other types of goods, involves a structured process to ensure compliance with Canadian regulations. Understanding the steps and requirements are crucial to ensure there are no issues or complications.
Canada Car Import Laws to Know
Canadian Safety Standards
All vehicles imported into Canada must comply with the Canadian Motor Vehicle Safety Standards (CMVSS). These are essential standards to ensure that vehicles meet the specific safety requirements for operation on Canadian roads.
To understand more about these requirements, or to determine if a car complies with CMVSS, you may visit the Transport Canada database, or consult with a Registered Importer. It’s essential that you’re aware of the key differences between U.S. and Canadian standards, such as the requirements for daytime running lights and immobilizer systems. Cars that don’t meet the CMVSS requirements may require further modifications to be eligible for import.
Registrar of Imported Vehicles (RIV) Program
The Registrar of Imported Vehicles (RIV) program plays a vital role in ensuring the safety and compliance of imported vehicles on Canadian roads. It acts as a gatekeeper, overseeing the importation process to confirm that all vehicles meet Canadian standards. The RIV’s mandate is to prevent the importation of unsafe or emissions-non-compliant vehicles, protecting both road users and the environment.
When importing a car into Canada, you’ll interact with the RIV program in several ways:
- Submitting Vehicle Information: Before importing, you must electronically submit a Vehicle Import Form (Form 1) to the RIV through their online portal. This form captures key details about your vehicle, including its make, model, year, VIN and compliance information.
- Paying the RIV Fee: A registration fee is required to process your vehicle import. This fee can be paid online through the RIV website.
- Scheduling Inspections: Once your vehicle arrives in Canada, it must undergo an inspection at a Registered Importer (RI) facility authorized by the RIV. This inspection verifies that the vehicle complies with Canadian safety standards (CMVSS) and emissions regulations.
Emission Standards
Imported vehicles must meet Canadian emission standards to ensure they contribute to Canada’s environmental goals, such as those outlined in the Paris Agreement. These standards, regulated under the Passenger Automobile and Light Truck Greenhouse Gas Emission Regulations, aim to reduce greenhouse gas emissions from the transportation sector.
Required Documents for Customs
Accurate and thorough documentation is essential when importing a car into Canada. Here’s a list of the key documents you’ll need:
- Bill of Sale: Proof of purchase from the seller, including the date of sale, purchase price and signatures of both the buyer and seller.
- Original Certificate of Title: This document proves ownership of the vehicle and should clearly show the Vehicle Identification Number (VIN).
- Last Copy of Registration (for used vehicles): The most recent vehicle registration document from the vehicle’s origin, showing its registration and ownership history.
- USMCA/CUSMA Certificate of Origin (if applicable): This certificate is required if the vehicle qualifies for preferential tariff treatment under the USMCA/CUSMA trade agreement.
- Letter of Gifting with Letter of Appraisal (if applicable): If the vehicle is a gift, a letter of gifting along with an appraisal document is required.
- Form 1 – Submitted to RIV: The Vehicle Import Form, submitted to the Registrar of Imported Vehicles (RIV) to register the vehicle and obtain import clearance.
- Form 2 – Received in the Mail and Required for Inspection Purposes: The Transport Canada Vehicle Importation and Safety Compliance Form, completed by a Registered Importer (RI) after inspecting the vehicle.
- Salvage Certificate (if applicable): Required if the vehicle has been previously salvaged or declared a total loss.
- Recall Clearance Letter (for U.S. imports): A letter from the manufacturer stating that there are no outstanding recalls. This is crucial for demonstrating the vehicle’s safety compliance.
- U.S. Customs Export Declaration: A completed declaration submitted to U.S. Customs and Border Protection (CBP) at least 72 hours prior to export.
- AES/ITN Number for Exports From the U.S.: Proof of electronic export information filing.
Consider your paperwork as the foundation of your vehicle’s entry into Canada. Each form, signature and supporting document validates compliance with Canadian import regulations.
The Registrar of Imported Vehicles (RIV) meticulously reviews these documents. Only upon successful vehicle inspection, and verification of complete and accurate paperwork, will the RIV issue a Canadian Certification of Registration. This certification is indispensable, enabling you to register and license the vehicle in Canada for legal operation on Canadian roads.
Conversely, incomplete or incorrect documentation can lead to complications at the border, potentially resulting in delays, penalties or even refusal of entry. It’s therefore essential to know how to import goods to Canada, as such setbacks can incur unnecessary expenses and disrupt your plans.
Car Import Duties, Taxes and Costs
Importing a car into Canada involves various costs beyond the purchase price. These include:
- Import duties: Canada imposes a 6.1% duty on vehicles originating outside of the U.S. (U.S.-made vehicles are exempt under trade agreements).
- Taxes: You’ll need to pay federal and provincial taxes, including GST/HST and PST (or QST in Quebec).
- RIV registration fee: A fee payable to the Registrar of Imported Vehicles.
- Excise tax: A CAD 100 excise tax applies to vehicles equipped with air conditioning.
- Inspection fees: Fees for the mandatory inspection at an authorized RIV facility.
The exact amount of these import costs will vary depending on the vehicle’s value, origin and the specific region within Canada where it’s being imported to.
Exceptions for Classic Cars and Vintage Vehicles
Special considerations apply when importing classic cars and vintage vehicles (generally those older than 15 years). These vehicles are exempt from the Motor Vehicle Safety Act (MVSA) and do not need to comply with the Canadian Motor Vehicle Safety Standards (CMVSS).
However, they must still meet the Canada Border Services Agency’s (CBSA) admissibility requirements, which may include a visual inspection at the border. Importers of vintage vehicles should ensure they have all necessary documentation, including proof of age, to facilitate the import process and demonstrate the vehicle’s eligibility for this exemption.
Streamline Car Imports to Canada with CrimsonLogic
Importing a vehicle into Canada involves navigating a complex web of regulations and procedures, particularly when it comes to customs requirements. CrimsonLogic simplifies this process with solutions like the Integrated Import Declaration (IID). This solution streamlines the electronic submission of import data to the Canada Border Services Agency (CBSA) and other Partner Government Agencies (PGAs), enabling efficient and accurate reporting that ensures compliance with import regulations.
To get started with importing your dream car, or to learn more about our Integrated Import Declaration software, contact our Sales team today!
