Exporting/Importing Vehicle - US to Canada ONLY!

[NorthwardCA]

Background:
I'm moving back to Canada after living in the US for over 15 years. I have been married to my US husband for 15 years, and have sponsored him to move back to Canada with me. PR is in process, we're planning our move for this summer.

My Question:
My understanding is that, for returning residents like me, importing a car worth over $10k means I am responsible to pay tax for the amount over 10k. However, I also read that this 10k limit does not apply to Settlers like my spouse.

We have a car that is worth over $10k that we have owned for over 3 years in the US, and we want to bring with us to Canada. The title is in my name, but that's because my husband couldn't be at the dealership at the time, so I bought the car and never bothered to update the title. Beyond that, we have jointly owned our goods for the 16 years we've been married.

We are planning to go to the DMV to update the title to his name prior to our move, so he can claim the vehicle as his and qualify for the tax exemption prior to our moving to Canada. Is this okay for us to do? Are there any red flags if we do this?

 

[Alex54321]

Background:
I'm moving back to Canada after living in the US for over 15 years. I have been married to my US husband for 15 years, and have sponsored him to move back to Canada with me. PR is in process, we're planning our move for this summer.

My Question:
My understanding is that, for returning residents like me, importing a car worth over $10k means I am responsible to pay tax for the amount over 10k. However, I also read that this 10k limit does not apply to Settlers like my spouse.

We have a car that is worth over $10k that we have owned for over 3 years in the US, and we want to bring with us to Canada. The title is in my name, but that's because my husband couldn't be at the dealership at the time, so I bought the car and never bothered to update the title. Beyond that, we have jointly owned our goods for the 16 years we've been married.

We are planning to go to the DMV to update the title to his name prior to our move, so he can claim the vehicle as his and qualify for the tax exemption prior to our moving to Canada. Is this okay for us to do? Are there any red flags if we do this?

I am going to do the same with our 2 vehicles. I personally do not see any red flags. But for us they will be in the list of goods to follow...

 

[NorthwardCA]

I am going to do the same with our 2 vehicles. I personally do not see any red flags. But for us they will be in the list of goods to follow...

Good to know. Thanks.

 

[Alex54321]

Guys, I am planning to bring my car on a work permit so would be doing a temporary import. Now here is the challenge, I am also planning to apply for a PR at a later day.

What happens to the car if my status changes from temporary to PR? I understand that I am expected to then officially export the car from USA and then import it.

Challenge is when this happens I might not have Visa to travel to USA to get the car exported. Which means I would be stuck with the car .

As per me here are my options

Option 1 - Sell Car in USA and buy one in Canada - This means I take a depreciation hit on a good car and spend cash(as I wont have credit history in Canada). So overall expensive option but safer

Option 2 - Bring the car on Temp, drive it for few months till I have valid US visa and return and sell the car in US. This way i would have something available immediately and can build up some cash &/or credit for buying a car in Canada. Works in short term and slightly less expensive.

Option 3 - Figure out a way to import the car either on change of status or from Day 1 (i.e. while entering Canada on WP). Much better option if possible for obvious reasons.

Option 4 - Use the car till change of status and at that time if I don't have a valid USA visa, send the car via transport to USA and ask friends/family to get it sold. - Risky as I don't know how easy it will be for them to sell especially since i wont have original Title(which i would have to give to Canadian authorities while registering in Canada)

Thanks for all the help

It's a bit of different scenario and timing and maybe I broke the law, but back in 1998 I've entered US from Canada on temporary TN visa ( you know 1 year, renewable each year) with my used Canadian made car. After driving the car 3-4 months in US with Canadian plates and Canadian insurance and Canadian DL finally I've got my US DL and successfully registered/plated/insured the car in Cincinnati, OH. No question asked by Ohio SOS. Since then I drove that car to the ground in US. That's my story.

Here is another nice link-
Exporting/Importing Vehicle - US to Canada ONLY!

https://www.canadavisa.com/canada-immigration-discussion-board/threads/exporting-importing-vehicle-us-to-canada-only.415713/

 

[Alex54321]

As I understand the "Option 4" will not work - not sure how to sell a car without clean Title.
Option 3 - somebody was able to Export/Import car using third party.

 

[aj355]

Hey Everyone,

I did not submitted a "goods to follow" list during the landing which I did 2 years back. I did soft-landing and came back to US after few days. I did couple of short trip (few days) to Canada after that. I having been living in US since then.

Now I plan to finally move to Canada. The car I am currently using is registered on my friend's name, so I want to buy it from him and import it in Canada.

1) Can I still claim that I am Settling/moving to Canada now, and submit a "goods to follow/accompany" list? (https://www.canadavisa.com/canada-immigration-discussion-board/threads/is-it-really-worth-it.476247/page-12#post-6537949 @APPNOV2014NY)

If not:

2) Will I have to pay the import Duty (6.1%)? I believe it is waived off for car manufactured in North America under NAFTA (https://www.crossbordershopping.ca/auto-import-guide/vehicle-duties-taxes-fees).

3) Will I have to pay GST (5%) and PST (7% for BC)?

4) Is the GST and PST based on the purchase value of the car, or market value? (these two might be significantly different in my case as I might be buying from my friend for a very low price or as a gift).

 

[greencard14]

Hey Everyone,

I did not submitted a "goods to follow" list during the landing which I did 2 years back. I did soft-landing and came back to US after few days. I did couple of short trip (few days) to Canada after that. I having been living in US since then.

Now I plan to finally move to Canada. The car I am currently using is registered on my friend's name, so I want to buy it from him and import it in Canada.

1) Can I still claim that I am Settling/moving to Canada now, and submit a "goods to follow/accompany" list? (https://www.canadavisa.com/canada-immigration-discussion-board/threads/is-it-really-worth-it.476247/page-12#post-6537949 @APPNOV2014NY)

If not:

2) Will I have to pay the import Duty (6.1%)? I believe it is waived off for car manufactured in North America under NAFTA (https://www.crossbordershopping.ca/auto-import-guide/vehicle-duties-taxes-fees).

3) Will I have to pay GST (5%) and PST (7% for BC)?

4) Is the GST and PST based on the purchase value of the car, or market value? (these two might be significantly different in my case as I might be buying from my friend for a very low price or as a gift).

I'm in the same boat. I'm interested to see what others have to say about this.
By the way, did you make any checklist of To Do things before making the permanent move to Canada after living in the U.S. for so long? Like opening zero foreign transaction credit cards, etc?

 

[Mthornt]

If it's not on your original items to follow list, they will hit you for taxes. Although you may not have to pay the full duty, I think you can contact RIV to get further information.

Hey Everyone,

I did not submitted a "goods to follow" list during the landing which I did 2 years back. I did soft-landing and came back to US after few days. I did couple of short trip (few days) to Canada after that. I having been living in US since then.

Now I plan to finally move to Canada. The car I am currently using is registered on my friend's name, so I want to buy it from him and import it in Canada.

1) Can I still claim that I am Settling/moving to Canada now, and submit a "goods to follow/accompany" list? (https://www.canadavisa.com/canada-immigration-discussion-board/threads/is-it-really-worth-it.476247/page-12#post-6537949 @APPNOV2014NY)

If not:

2) Will I have to pay the import Duty (6.1%)? I believe it is waived off for car manufactured in North America under NAFTA (https://www.crossbordershopping.ca/auto-import-guide/vehicle-duties-taxes-fees).

3) Will I have to pay GST (5%) and PST (7% for BC)?

4) Is the GST and PST based on the purchase value of the car, or market value? (these two might be significantly different in my case as I might be buying from my friend for a very low price or as a gift).

 

[APPNOV2014NY]

Hey Everyone,

I did not submitted a "goods to follow" list during the landing which I did 2 years back. I did soft-landing and came back to US after few days. I did couple of short trip (few days) to Canada after that. I having been living in US since then.

Now I plan to finally move to Canada. The car I am currently using is registered on my friend's name, so I want to buy it from him and import it in Canada.

1) Can I still claim that I am Settling/moving to Canada now, and submit a "goods to follow/accompany" list? (https://www.canadavisa.com/canada-immigration-discussion-board/threads/is-it-really-worth-it.476247/page-12#post-6537949 @APPNOV2014NY)

You have not settled down in Canada yet and were visiting Canada only for short trips so you are entitled to move your goods to Canada duty free. However, since so much time has lapsed since your soft landing and you have made several trips to Canada after that, you might need to prove it to CBSA that this is the first time you are "actually" moving to Canada to establish a residence for more than 12 months ( hence a first time settler). If I was in your situation then I would:

1. Take Print out of following web page with point 9 and 10 highlighted with a marker
https://www.cbsa-asfc.gc.ca/publications/dm-md/d2/d2-2-1-eng.html

2. Drop an email to CBSA at contact@cbsa.gc.ca explaining your situation. They might revert back with a generic reply but still take print out of reply from CBSA. This will indicate CBSA agents at POE that you have done proper research on this.

If some ignorant CBSA agent troubles you then please let them politely know that you would like to talk to their supervisor.

On a side note, aren't you suppose to own stuff for at least 6 months to claim duty free movement? Not sure if it's for first time settler or returning residents or both but you might want to check on this. CBSA "might" create trouble for big ticket items like Car.

 

[smarties66]

4) Is the GST and PST based on the purchase value of the car, or market value? (these two might be significantly different in my case as I might be buying from my friend for a very low price or as a gift).

I found this golden nugget on an article from The Globe And Mail:

The GST and duty will be based on the Canadian Red Book value of your car, says Viraf Baliwalla of the Automall Network, a Toronto-based car broker. If you've been a U.S. resident for a year or more – and you've owned the car for at least a year – you'll get a $10,000 exemption, Baliwalla says.

The tax and duty will be based on the remainder. So, if a car had a book value of, say, $29,000 CAD, you'd pay tax and duty on $19,000. That would be $950 for GST and $1159 for duty.

"The Red Book value is usually much higher than what we'd buy a vehicle for in Canada or the U.S.," Baliwalla says.

The Red Book value can be as much as 20 per cent higher than the black book values you can find on the Internet, says the Alberta Motor Association.

 

[EmmEmm]

I believe in Ontario the registration is annual and I am assuming they check your status during renewals.
.

24 months max registration in Ontario.

 

[EmmEmm]

I found this golden nugget on an article from The Globe And Mail:

The GST and duty will be based on the Canadian Red Book value of your car, says Viraf Baliwalla of the Automall Network, a Toronto-based car broker. If you've been a U.S. resident for a year or more – and you've owned the car for at least a year – you'll get a $10,000 exemption, Baliwalla says.

The tax and duty will be based on the remainder. So, if a car had a book value of, say, $29,000 CAD, you'd pay tax and duty on $19,000. That would be $950 for GST and $1159 for duty.

"The Red Book value is usually much higher than what we'd buy a vehicle for in Canada or the U.S.," Baliwalla says.

The Red Book value can be as much as 20 per cent higher than the black book values you can find on the Internet, says the Alberta Motor Association.

my car value was coming almost CAD $5K higher than $10K but the lady at the Import office was nice plus I used my charm.. haha .. and she put CAD $10K as the value.. so I paid no taxes !!

 

[kirribilliCN]

Thanks for this thread, it is helpful to read. I am going through this process now. My vehicle does not have DRL and also I have to switch the speedometer panel from miles to kmph. Do you recommend getting these two two things done before I leave U.S (or) should I wait until I get to Canada?

 

[kirribilliCN]

you need a license abstract (NOT a Driving history abstract) from DMV. it should clearly mention "Date first licensed" to get the driving history added on your Canadian DL. Most states charge $20 for it. Drive test people in Canada will take the original from you, make sure you have copies or scanned images for your own usage, in future, if needed.

your inspection should pass if your emissions passed in the US in 2017. For safety, Cdn Tire will charge 250 bucks may be. Call TJF Auto at 3211 Wolfedale Rd #1, Mississauga, ON L5C 1V8. get a quote.

you will need DRL if your car does not have it. Nissan will charge $550. Check my PM to get it done for $100.

you can register your car with any address. RIV will mail the Canadian Certificate sticker. thats it.

Hello - can you please provide the info for getting DRL done for cheap. Thank you!

 

[Alex54321]

Thanks for this thread, it is helpful to read. I am going through this process now. My vehicle does not have DRL and also I have to switch the speedometer panel from miles to kmph. Do you recommend getting these two two things done before I leave U.S (or) should I wait until I get to Canada?

Did you check with Transport Canada whether your vehicle is admissible to Canada?
This link helps.
http://www.tc.gc.ca/motorvehiclesafety/safevehicles/importation/usa/vafus/list2/menu.htm