The Ultimate Guide to Importing a Car into Canada

You’ve found your dream car, but it lives in another country? Don’t give up! With a little diligence, you can go through the steps of importing a car to Canada. This process comes with a number of regulations and procedures. But fear not. This ultimate guide will help you fulfil your dream of importing that car to the Great North!

Meeting Canada Motor Vehicle Safety Standards (CMVSS)

First, when importing a car to Canada, make sure it meets the country’s stringent Motor Vehicle Safety Standards (CMVSS). Canada has some of the highest vehicle safety standards in the world, so the car you’re considering must comply with these regulations.

When it comes to importing a car to Canada, you have a few key factors to consider. Naturally, most vehicles manufactured in North America will likely meet these standards. After all, they are designed with the Canadian market in mind. However, always confirm the vehicle’s conformity before finalizing a purchase. 

Next, check the vehicle’s details against the CMVSS checklist. This list outlines the specific requirements, such as lighting, braking systems, fuel systems and crashworthiness. By comparing the vehicle’s specifications against it, you can identify any potential areas of non-compliance.

In addition to reviewing the safety features, conduct a visual inspection or ask multiple photos if you’re buying remotely. Ideally, you’ll look for any signs of damage or modifications that may compromise the vehicle’s safety. Pay close attention to the condition of the tires, lights and any visible structural components.

Importing a car to Canada can be a complex process, so seek guidance from the appropriate authorities. The Registrar of Imported Vehicles (RIV) can provide additional assistance and information. It can help you navigate the importation process and answer any specific questions you may have. It even provides an importer’s checklist.

Finally, it can provide guidance on how to ensure your chosen vehicle meets the CMVSS requirements. Transport Canada also has regulations related to non-regulated vehicles.

Affording the car’s taxes, duties and transportation fees

Though you might have found a steal abroad, you must factor in all additional costs before finalizing your purchase. This might include taxes, duties and transportation fees, which can significantly increase your overall expenses.

When it comes to taxes, each country has its own regulations and rates. Some countries have high tax rates on luxury vehicles, while others may have lower rates for electric or hybrid cars. For instance, research to understand the tax structure of the country where the car comes from. Hiring a customs broker to handle the paperwork and payments may help with that process.

In addition to taxes, duties may also apply. Governments impose duties on imported goods, including vehicles. These fees can vary depending on the country and the type of vehicle.

For instance, you’ll face these costs if you import from the United States:

• $200 fee to get an Individual Taxpayer Identification (ITN) Number from a customs broker
• RIV registration fees of $325 plus GST and provincial sales tax or $100 plus taxes for cars being used for parts only
• Goods & Service Tax (GST) of five percent on the sales price before trade-in deduction plus taxes and duties
• Provincial Sales Tax based on where you live, except for Alberta
• 6.1 percent import duty on non-NAFTA vehicles, such as Toyota, Honda or Subaru
• $100 fee if the vehicle has air conditioning
• Excess Weight Tax for vehicles of more than 2,000 kilograms (4,425 pounds)
• Excise tax (Green Levy, also known as the Gas Guzzler Tax) of $1,000 to $4,000 on vehicles with a weighted average fuel consumption rating of 13 or more litres per 100 kilometres or lower

Transporting a car into Canada

If you purchase a car from overseas, factor in the cost of shipping the vehicle to your location. Transportation fees can vary depending on the distance, mode of travel and any additional services required, like insurance or handling.

Furthermore, transportation fees can also include any customs clearance charges or documentation fees for importing the car. These fees can vary depending on the country’s import regulations and the complexity of the process.

For peace of mind, consult with a professional who specializes in international car purchases. They can provide valuable insights and guidance on the additional costs involved, ensuring that you have a clear understanding of the financial implications.

By taking the time to carefully calculate and consider the taxes, duties and transportation fees, you can avoid any unexpected financial burdens. Of course, buying a car abroad can be an exciting adventure, but get financially prepared for all the associated costs.

Buying a car from an international seller 

Making a purchase from an international seller demands a considerable degree of due diligence. You have to ensure the seller is reputable and trustworthy. You can check customer reviews, ratings and legal standings where the seller operates.

Additionally, thoroughly research the seller’s background and history. Look for any red flags or negative feedback that may indicate potential issues. By taking the time to investigate the seller, you can minimize the risk of scams or fraudulent activities.

Avoid Common Scams

Furthermore, arm yourself with knowledge about common scams to avoid falling prey. Scammers often target unsuspecting buyers, especially in online transactions. They may use various tactics, such as offering unrealistically low prices or requesting payment through unconventional methods.

Familiarize yourself with these scams and learn how to identify warning signs. By being aware of the different strategies scammers employ, you can protect yourself from becoming a victim

Payment methods

When it comes to payment methods, choose a method that minimizes the risk of fraud and involves as few fees as possible. Here are three ways to send money abroad to pay for your new car:

Using an Escrow Service

When diving into international money transfers, especially with unknown entities, the safety of your funds should remain top of mind. International escrow services, like Escrow.com, step into this space, offering an extra layer of protection. These platforms act as financial gatekeepers, holding onto your payment until both buyer and seller meet their end of the bargain. 

Historically, fees for these services have ranged from 0.89 to 3.25 percent of the transaction amount. While this might seem like an additional expense, the assurance and security they provide, especially when dealing with unfamiliar sellers, can be priceless. With escrow services, you can venture into international purchases with heightened confidence, knowing that your funds are safeguarded.

Wise Transfer 

Wise  stands as a modern answer to the challenges of cross-border transactions. The platform offers real-time exchange rates, which means you’re often getting a better deal compared to traditional banks. With its transparent fee structure, Wise ensures you’re aware of all costs upfront, and its rapid transaction processing times make it a go-to choice for many making international payments.

SWIFT Transfer

The SWIFT (Society for Worldwide Interbank Financial Telecommunication) network offers a banking mainstay for international transfers. SWIFT communicates between banks as money moves  from one account to another. Major banks charge two to five percent in exchange rate costs on a SWIFT transfer.

Despite its global acceptance and widespread use, the journey can sometimes weave through multiple banks, each taking its time. This can result in unexpected delays and fluctuations in the final amount received by the seller. Still, many opt for SWIFT due to the deep-rooted trust in this established system, especially for large-sum transactions.

Preparing documentations for the Canada Border Services Agency

Getting all your paperwork in order well before you reach the Canadian border saves you from undue stress and delays.

The Canada Border Services Agency (CBSA) requires a plethora of documents, including the certificate of title, bill of sale and statement of origin. Organize these documents well in advance to smooth out the customs clearance process.

The certificate of title serves as evidence that you are the rightful owner of the vehicle you are bringing into the country. It should clearly state your name as the owner.

In addition to proof of ownership, the CBSA also requires a bill of sale. This document provides details about the purchase transaction, such as the price, the date and the buyer’s and seller’s names. Having this properly filled out establishes the legitimacy of your import and prevents any misunderstandings with the border officials.

Also, bring along the statement of origin. This document outlines the vehicle’s specifications and the identities of the exporter and importer. You must obtain this verification before crossing the border to comply with Canadian safety standards.

Supporting paperwork

Aside from these specific documents, it is also advisable to have other supporting paperwork ready. This may include insurance documents, import permits and any relevant certificates or licenses. Having all the necessary paperwork in order will demonstrate your preparedness and willingness to comply with Canadian customs regulations.

Furthermore, remember that the CBSA has the authority to conduct thorough inspections of your vehicle. Therefore, prepare for potential delays and have all the required documents readily accessible. Getting organized and having a clear understanding of the requirements helps streamline the customs clearance process and minimize any inconvenience.

Lastly, the CBSA may occasionally update their documentation requirements, so stay informed and up-to-date. Check the CBSA website or contact their offices for the most current information regarding the documents you need to prepare.

Importing a car from the United States

When importing a car from the United States, you must follow several steps to comply with both U.S. export laws and Canadian import laws. Let’s dive into the details!

First and foremost, before you can import a car from the U.S., you must submit the required paperwork to U.S. customs at least 72 hours before the scheduled export. This step allows the authorities to keep track of vehicles leaving the country. 

Now, you have various options available for shipping, including using a car transport service or driving the vehicle yourself. If you choose to use a transport service, select a reputable company that specializes in international car shipping. They will handle the logistics of transporting your vehicle across the border.

Before the car can enter Canada, you’ll need to provide the necessary documentation to Canadian customs. This includes the bill of sale, the U.S. export paperwork, and a completed Vehicle Import Form. Still, the vehicle must comply with Canadian import laws, including meeting safety and emission standards.

Next, pass inspection

Next, it will go through a thorough inspection process conducted by the Canadian Border Services Agency (CBSA). The CBSA will verify that the vehicle meets all requirements and may request additional documentation or modifications if needed. For example, you cannot bring home a van converted into a motorhome or a motorcycle turned into a trike. 

After this inspection, you must pay any applicable duties, taxes, and fees. These fees will vary depending on the value and type of vehicle. Ahead of time, consult with the CBSA or a customs broker to get a clear understanding of the costs involved.

Finally, you’ll register your imported car in Canada. You’ll need to visit your local provincial or territorial licensing office to complete the registration process. They will provide you with license plates and registration documents, allowing you to legally drive your imported car on Canadian roads.

The rules for importing cars from the United States also apply to Mexico. After all, it is also a partner in the North America Free Trade Act. However, if you plan to ship a car from countries other than these two, your car may not get into Canada. Not only will your car get blocked at the border, you must pay all storage and disposal fees on an inadmissible vehicle.

Remember to do thorough research, seek professional advice if needed, and be patient throughout the process. Happy importing!

Choosing the Best Shipping Options for Your Car

When it comes to importing a car into Canada, weigh the options available for shipping and transportation. Each method comes with its unique set of advantages and considerations. After all, what works best for one person may not suit another. Here’s a closer look at some of the most common methods:

Driving the Car Yourself

For those living near the U.S. border, driving it home can become the most straightforward solution. This approach often scores as the most cost-effective. For instance, you pay travel expenses to the car’s location and fuel for the journey back. If it’s a long drive, perhaps add accommodation or meals.

However, the time commitment can serve as a drawback, especially if you have to cover a vast distance. Additionally, you need to have the necessary insurance and temporary registration to make the trip hassle-free.

Hiring a Professional Driver

If the idea of a road trip doesn’t appeal to you, you can hire a professional driver. Fortunately, companies and individuals specialize in this service, making it a convenient option for many. While more expensive than driving the car yourself, it saves you time and the potential stress of a long drive.

On the other hand, finding a reputable driver or service creates challenges. Certainly, the safety and care of your new car rests in their hands. Further, the driver must know the importation process and the specific requirements at the Canadian border.

Shipping by Boat

For vehicles located overseas or at great distances, shipping by boat makes a logical choice. However, the cost can run on the higher side due to port fees, shipping charges and potential storage fees at the destination. Yet, it’s often the most feasible method for international imports.

The major downside is the time. Boats can take several weeks to a few months to reach their destination, depending on the point of origin. Plus, factors like adverse weather and customs inspections can further prolong the process.

Shipping by Truck

For those importing cars from within North America, using a trucking service works. These services offer open and enclosed trailers, allowing you to choose based on your budget and protection for the vehicle. While it costs more than driving the car yourself, it can move faster than shipping by boat for shorter distances.

Mainly, consider finding a reputable shipper and preparing for logistical issues, such as delays due to traffic or weather conditions.

Registering your car in Canada

Importing a car into Canada covers only half the journey. Once your vehicle has successfully entered the country, you must register it for use on Canadian roads. This process, while straightforward, has some nuances and can vary depending on where you live.

Understanding Provincial Differences

Canada doesn’t have a uniform method for registering imported vehicles; instead, each province sets its requirements. For instance, what applies for car registration in Quebec might not work in British Columbia. To make this process more navigable for you, we’ve provided a comprehensive table below. It connects you with the registration requirements for each province.

Province or territory	Requirements
Alberta	Vehicle Registration Certificate, proof of ownership, certificate of origin and Import Form 1, safety inspection and payment of any outstanding fines
British Columbia	Register, license and insure it at an Autoplan broker, providing an in-transit permit from where you bought it, then pass a safety inspection (except for new vehicles, low speed electric vehicles, trailers and motorcycles)
Manitoba	Temporary Registration Permit, ownership and proof the vehicle meets basic standards, plus  Vehicle Import Form, certificate of origin and a certificate of title
New Brunswick	Same as the federal requirements
Northwest Territories	Photo ID, bill of sale, proof of insurance with an NWT address and previous registration
Nova Scotia	Same as the federal requirements
Nunavut	Vehicle Import Form and proof of valid insurance
Ontario	Vehicle Import Form 1 showing the vehicle on the list of imported goods, driver’s licence, bill of sale, proof of insurance from a provider licensed in Ontario and an original vehicle permit from seller with completed transfer portion
Prince Edward Island	Same as the federal requirements
Quebec	Driver’s licence, bill of sale and the vehicle’s weight certificate, if not indicated in the other documents
Saskatchewan	Federal requirements, plus VIN status on CARFAX and weight and dimensions
Yukon	Vehicle Import Form and proof of valid insurance

Securing a Provincial Inspection

After importing, all vehicles need to undergo an inspection to ensure they align with the specific safety and emission standards of the province they’ll be registered in. While the general theme is to ensure road safety and environmental standards, the exact criteria and processes can differ. Be prepared to make any necessary modifications to your vehicle based on the inspection’s findings.

Purchasing Car Insurance

Before you can register your vehicle in Canada, you must have it insured. The type of vehicle, its age and origin can all influence the insurance premium. It’s advisable to shop around and compare car insurance quotes from multiple providers. Once insured, you’ll receive a proof of insurance, which you will need for the registration process.

Registering at the Provincial Licensing Office

With your inspection cleared and proof of insurance in hand, head to your provincial licensing office. Here, they’ll require your Vehicle Import Form, which you would have received after clearing customs. This form, along with your proof of insurance and inspection documents, will aid the registration process. Once they approve all paperwork and you pay the registration fee, you’ll get license plates and a vehicle permit.