Exporting/Importing Vehicle - US to Canada ONLY!

[Alex54321]

Hello all,

I am planning to move to Canada in Jan 2018 (FSW-O, express entry landing) I need few info to clear about the confusion I have regarding tax.

- If vehicle is manufactured in North America then no Duty on it at border, correct?
- There are other fees like air condition, gas guzzler, etc... which can not be avoided. Car may need certain modification such as DRL etc...
- Do I need to pay GST + PST (Ontario) for my car imported from USA to Canada? Or is there any way to waive it off? This is my main concern.

If anyone can throw clear light on this it will be great. I read somewhere that one can get GST waived off too while landing. Not sure if that is true.

Yes, I have the similar questions about taxes.
When a new immigrant moves to Canada or Canadian citizen returns to Canada they "would" fill out goods-to-follow form. How does this form help with importing a vehicle from US to Canada as far as taxes?

 

[PMM]

Hi

Yes, I have the similar questions about taxes.
When a new immigrant moves to Canada or Canadian citizen returns to Canada they "would" fill out goods-to-follow form. How does this form help with importing a vehicle from US to Canada as far as taxes?

1. The vehicle can be imported duty and taxes free if included on your goods to follow list. It is considered settler's effect.

 

[Alex54321]

Hi



1. The vehicle can be imported duty and taxes free if included on your goods to follow list. It is considered settler's effect.

Yes, that sounds great, but how about $10,000CAN goods limit rule that states that tax should be paid on the estimated used vehicle value which exceed 10K? So if the car value is $30k the tax is going to be on $20K ?

 

[chikoo1985]

Yes, that sounds great, but how about $10,000CAN goods limit rule that states that tax should be paid on the estimated used vehicle value which exceed 10K? So if the car value is $30k the tax is going to be on $20K ?

I think that's for Cash limit. Not for total good values.

 

[Alex54321]

Yes, that sounds great, but how about $10,000CAN goods limit rule that states that tax should be paid on the estimated used vehicle value which exceed 10K? So if the car value is $30k the tax is going to be on $20K ?

PMM: I think you are partially right.

Here is the link http://cbsa-asfc.gc.ca/travel-voyage/mrc-drc-eng.html
Moving or returning to Canada

They consider two categories of "travelers":
- entering Canada with the intention of establishing, for the first time - the Principal Applicant for example
( in my case Family sponsorship)
- a former resident, moving back to Canada to resume residence after a continuous absence of one year or more - a Sponsor ( me ).

The list of "Items you can import duty- and tax-free" include - personal vehicles, but the note below states Value limitation (CAN$10,000) *only applies to former residents. Any single personal or household item, including an automobile, that is worth more than CAN$10,000 on the date you import it, is subject to applicable duty and taxes on the amount over CAN$10,000.

So, the way I read this that a Canadian citizen who is returning to Canada after long absence and importing his vehicle will pay taxes on vehicle value ( on the date of import) in excess of CAN$10,000.
The new PR importing his vehicle will import it duty- and tax-free.

If I am right than my spouse ( a new comer) should be the owner of both our vehicles to import them duty- and tax-free at time of landing or at later date where vehicle(s) is/are on goods to follow list.

Please confirm.

 

[macboy012]

Hi Macboy012- I am here in Canada, landed and put my vehicle on my import paperwork as to be imported at a later date. In order to get here, I drove my vehicle into Canada. I now have my original title and need to drive my vehicle back to a border to do the export/import process. Did you cross back into the US and stay there for 72 hours? What did you say at the US border when you were entering the US? In other words, did you say anything about your vehicle or just say you were visiting? How does US border know if your vehicle has been in the US for 72 hours prior to export?

That 72 hour requirement caused me a lot of stress. I'll tell you everything I took into account.
First, theres the website (https://www.cbp.gov/trade/basic-import-export/export-docs/motor-vehicle) which says:

Exportation at land border crossing points. For those vehicles exported by rail, highway, or under their own power.

The required documentation must be submitted to Customs at least 72 hours prior to export; and

1. The vehicle must be presented to Customs at the time of exportation.
   

This seems cut and dry, documentation must be submitted 72 hours before and vehicle must be present at crossing. I planned around this and submitted my documents 72 hours ahead. When I submitted the documentation by email, I received a reply which contained the following:

Remember, the vehicle must remain in the United States until you have completed the export process. If it is discovered that the vehicle was taken to Canada prior to completing the export process, the exporter is subject to penalty and monetary fines, as well as seizure of the vehicle.
​

On one hand I though, whats the point of doing anything? The vehicle is already in Canada, I'm already breaking of their rules, but, just because you're breaking the rules doesn't mean you should flaunt them. I was frightened into driving my vehicle down to the US. I drove my vehicle down and left it before coming back for it 3 days later. I had it in the US for about 60 hours. I figured, if they ask, I want to be able to answer that I made a good faith effort to obey their rules.

What happened in the end? NOTHING! Nobody ever even asked how long it had been in the US or if it had been in Canada at all. It was smooth sailing at the border.


To answer your questions:

• Did I cross back and stay before my crossing? Sorta, I crossed back, for 60 hours.
• What did I say at the border? "I live there." They never asked, and I strongly doubt they will ask. You're a US citizen driving your US licensed vehicle into the US, you and one thousand more today. If your conversation goes like mine has gone many times: "What were you doing in Canada?" - "I live there" - "Have a nice day"
• What did I say about my vehicle? Nada, you WILL NOT be grilled at the border, again, US citizen entering the US. The default is entry, not denial. They aren't worried about you over staying your visa or moving in, the US is still your country.
• How would they know your vehicle has been in the US for 72 hours? First, they'll ask you. Answer how you please. Just know that they DEFINITELY have a database of border crossing and license plates. Whether or not they consult is a matter of how bored or busy they are, or if they even care. If they want to know when your vehicle crossed the border, they have the information in the computer.

In summary, I was going to just cross immediately before exporting until I received their reply. Maybe you play it by ear. When you submit your documents, if you don't hear you need have your vehicle across the border, don't. I found their reply very motivating. Or you could call them and see what they want

Good luck

 

[DEEPCUR]

Guys do we need to pay sales tax again if we are registering in a Canadian province?

 

[chikoo1985]

Guys do we need to pay sales tax again if we are registering in a Canadian province?

As per the articles no... Please read below link

http://www.cbsa-asfc.gc.ca/travel-voyage/mrc-drc-eng.html

 

[chikoo1985]

Yes, that sounds great, but how about $10,000CAN goods limit rule that states that tax should be paid on the estimated used vehicle value which exceed 10K? So if the car value is $30k the tax is going to be on $20K ?

This applies for former resident only! Just read about it

Value limitation (CAN$10,000) *only applies to former residents

Any single personal or household item, including an automobile, that is worth more than CAN$10,000 on the date you import it, is subject to applicable duty and taxes on the amount over CAN$10,000. (This applies to items acquired after March 31, 1977.

Link: http://cbsa-asfc.gc.ca/travel-voyage/mrc-drc-eng.html

 

[Alex54321]

This applies for former resident only! Just read about it

Value limitation (CAN$10,000) *only applies to former residents

Any single personal or household item, including an automobile, that is worth more than CAN$10,000 on the date you import it, is subject to applicable duty and taxes on the amount over CAN$10,000. (This applies to items acquired after March 31, 1977.

Link: http://cbsa-asfc.gc.ca/travel-voyage/mrc-drc-eng.html

Yes, I agree with you, as I said before: "
So, the way I read this that a Canadian citizen who is returning to Canada after long absence and importing his vehicle will pay taxes on vehicle value ( on the date of import) in excess of CAN$10,000.

The new PR importing his vehicle will import it duty- and tax-free.
"

We have 2 vehicles in US, and Sponsor (Canadian citizen) is owner, but to avoid payment of duty/tax looks like the Titles has to be transferred to my spouse (Principal Applicant) before landing and they have to be included on goods list. Am I right?

 

[chikoo1985]

Yes, I agree with you, as I said before: "
So, the way I read this that a Canadian citizen who is returning to Canada after long absence and importing his vehicle will pay taxes on vehicle value ( on the date of import) in excess of CAN$10,000.

The new PR importing his vehicle will import it duty- and tax-free.
"

We have 2 vehicles in US, and Sponsor (Canadian citizen) is owner, but to avoid payment of duty/tax looks like the Titles has to be transferred to my spouse (Principal Applicant) before landing and they have to be included on goods list. Am I right?

Yes. If your spouse is first time settler then you can take advantage of it.

 

[aha_neo]

hi,
I went through the thread but couldn't find details on the process where the car from US is already in Canada
I did my landing at Niagara falls on Dec 7th and filled a customs form saying that my car will accompany me later.Meanwhile I utilized a Car shipping company to transport my car from the US to Canada.

The car has arrived and is currently in a Custom Bonded Warehouse, they have asked me to come and release the car.

If anyone utilized a custom bonded warehouse facility before, can you please tell me the steps that I have to follow.
I assume I have to take my paper with the customs declaration that had the details on the fact that car is arriving later.

What else do I need to take to the warehouse, and once I have completed the customs clearance, what process do I need to follow for getting the vehicle registered in Ontario, my assumption is
1) Get the customs cleared and take delivery of vehicle
2) Take it to an inspection station and get the certificate
3) Go to service Ontario with Canadian License and Canadian insurance to register the vehicle.

Is this correct?
Also can I drive the vehicle in Canada while I am getting it registered (I have US insurance and Canadian Driving license.

 

[jbourne]

Hello All, this information is very useful but I have a question.
while creating an account for AES export thing, what should we put in as company name.

 

[Rengasn]

I was working in US on a work visa and moved to Canada on a Temporary work permit in Aug, 2017 with still time left in my work visa. When I moved to Canada I drove my Car which i bought in US hoping that i will return back to US after few months once my assignment is completed in Canada. Also at the time of moving I still had loan left on the car and the title was with the bank, so I informed my bank that I am taking the vehicle with me to Canada for the period of my stay there which was authorized by them.

In the meantime I applied my permanent residency in Canada and got it approved in Dec,2017. I did flag pole in one of the US-Canada border to complete my landing procedure for Canadian permanent residency. As the title was still not with me I could not complete either the export process in US nor the Import process in Canada.

But when I did the flag poling, the Border officer, threatened me a lot that there will be a big penalty and fines for not completing the export process. Would she have put any entry any where about the vehicle and she just took copy of the US Insurance still I am using.

1) Now as I have paid off the loan completely and have collected the title of the Car in my hand, Can I complete the export process of the Vehicle now.

2) As my Visa has expired, I am not able to travel to US immediately, Can I hire an Auto transport company to bring the vehicle to US, finish off the export process and import the vehicle to Canada.

3) When the car is being taken by the transport company is there a chance for seizure of the vehicle or any chances for penalty or fines.

Note: Still the vehicle is not imported to Canada and still I am driving with an US plates which is expiring end of this month.

Any advice is really appreciated.

 

[DEEPCUR]

I was working in US on a work visa and moved to Canada on a Temporary work permit in Aug, 2017 with still time left in my work visa. When I moved to Canada I drove my Car which i bought in US hoping that i will return back to US after few months once my assignment is completed in Canada. Also at the time of moving I still had loan left on the car and the title was with the bank, so I informed my bank that I am taking the vehicle with me to Canada for the period of my stay there which was authorized by them.

In the meantime I applied my permanent residency in Canada and got it approved in Dec,2017. I did flag pole in one of the US-Canada border to complete my landing procedure for Canadian permanent residency. As the title was still not with me I could not complete either the export process in US nor the Import process in Canada.

But when I did the flag poling, the Border officer, threatened me a lot that there will be a big penalty and fines for not completing the export process. Would she have put any entry any where about the vehicle and she just took copy of the US Insurance still I am using.

1) Now as I have paid off the loan completely and have collected the title of the Car in my hand, Can I complete the export process of the Vehicle now.

2) As my Visa has expired, I am not able to travel to US immediately, Can I hire an Auto transport company to bring the vehicle to US, finish off the export process and import the vehicle to Canada.

3) When the car is being taken by the transport company is there a chance for seizure of the vehicle or any chances for penalty or fines.

Note: Still the vehicle is not imported to Canada and still I am driving with an US plates which is expiring end of this month.

Any advice is really appreciated.

I am afraid that the officer might be right. They don't need to make a note of it anywhere because when you try to do export/import in future, you will automatically be subject to taxes as the consequence of car not getting listed as goods to follow. You are a settler for immigration purposes which means you come with an intent of settling in Canada for a period of 12 months are more. So it is mandatory that the car gets listed in goods to accompany or follow.

They would allow car to be listed as goods to accompany only if it has been exported from US. They won't allow it as goods to follow as you already possess with it and you have residency in Canada.