sid4ever2009 said:
Hi All,
My wife (American) doesn't own a car now but plans on buying one in the next few weeks.
If she buys a car now and owns it for a few weeks does she has to pay duties and tax?
From what I have read the answer is no, the car she wants to buy is 30K. Is this true? Any advice is recommended.
Thanks!
Correct, as long as she owns, uses and possesses the new vehicle before turning in her B4 (assuming she'll be a Settler*). This includes her plating the car, etc in the US. CBSA Memo d2-2-1 details vehicle requirements specifically:
"15. In some cases, settlers wish to acquire goods in other than their homeland (e.g., while they are en route to Canada), and problems arise at the time of importation when not all of the ownership, possession, and use requirements have been met. As vehicles are frequently involved, the following criteria have been developed to assist settlers in such cases:
(a) the vehicle must have been owned and possessed by the settler, in accordance with the conditions described above, prior to his or her arrival in Canada;
(b) in addition to having owned and taken possession of the vehicle abroad, the settler must have been legally entitled to operate it in the free environment abroad (e.g., have a valid driver's licence) and have actually driven it on the open roads abroad for some distance, prior to the date on which the settler arrives in Canada. (note that a test drive using dealer licence plates or a drive only on the manufacturer's or dealer's premises does not qualify);
(c) the vehicle must have been licensed and insured (temporarily or otherwise), in the name of the settler, for use in the free environment abroad during the period it was used;
(d) documentary evidence is produced at the time of accounting to substantiate that the above requirements have been met;
(e) all of the remaining requirements of tariff item No. 9807.00.00 are complied with; and
(f) The vehicle is eligible for importation into Canada in accordance with Transport Canada's laws and requirements."
* "For the purpose of tariff item No. 9807.00.00, “settler” means any person who enters Canada with the intention of establishing, for the first time, a residence for a period of not less than 12 months, but does not include a person who enters Canada for the purpose of
(a) employment for a period not exceeding 36 months;
(b) studying at an educational institution; or
(c) performing preclearance activities on behalf of the Government of the United States under the terms of the Agreement on Air Transport Preclearance between the Government of Canada and the Government of the United States of America, signed January 18, 2001."
It sounds like she has her heart set on a specific vehicle and since you've imported cars before you may have done this already. However, FWIW, I would encourage you to take a look at the RIV web site (riv.ca) to ensure the vehicle qualifies for importation and what modifications will be needed when she moves (e.g., daytime running lights, etc) and do a bit of research on the manufacturer to understand what it will take to get the recall clearance letter (some are self-serve on a website, others require significant payment)
