Importing to Canada from US

[Storm'Norm]

Is importing from US to Canada a huge hassle? Anybody been successful? Any brokers you 'd recommend? First time buyer.

[speedracer]

Well worth the money saved by going to the US and importing. I just did this a few months ago and it is a fairly simply process. If the car is over 15 yrs the process is simplified even further. Do a search on this site in the Canada section and you find more info or send me a pm with any specific questions you have.

[Storm'Norm]

Thanks for the info, I'll continue to research. Any websites other than Pelican you'd look to buy from?

Cheers
Paul (no Porsche yet)

[speedracer]

sent you a pm paul.

[imcarthur]

The basics:

Title must be clear.
Title (or copy) must be presented to US Customs at border crossing 72 hrs before exiting. They do a title search & charge about $50.
On Canada side of the border you present sales invoice & must pay: 6.1% duty, 7% GST.
Then to plate it. If under 15 years see the RIV Canada site. If 15 years or older, you must get it safety checked. You pay Retail Tax as applicable.

Ian

[Christien]

You don't need a broker if it's non-commercial (i.e. you're not a dealer), assuming you go to the border and pick it up yourself. Fedex custom critical will do all the paperwork and take care of it from beginning to end, but they do charge for that service. I've done the process myself, twice now, once private and once commercial. For private I'd do it myself again. Commercial, I'd hire. It's much more complex and from what I heard from other folks at least an hour wait at the border (we were closer to 2) isn't uncommon.

Either way, it's a crappy process, and you get absolutely raped (pardon my french) by the canadian gov't for taxes, service charges, etc. but it STILL works out cheaper than buying a car in Canada. One Subaru dealership my dad talked to on the US side of Sault Ste. Marie said they get canadians over there all the time buying brand new because it's so much cheaper.

One other thing to consider - drive it home or trailer it? If you drive it it has to have plates and insurance - can be problematic, depending on your local dmv. For the private purchase, we trailered it, for the commercial we could use a dealer plate and the fleet insurance, so it was easier.

The best advice is to make sure you're completely 100% familiar with the process - call RIV, call US customs, call CBSA, Ministry of Transportation, because if you screw up at the border, you're in trouble. If you're lucky it'll mean a couple hours delay, but it could result in finding a storage lot and a hotel while paperwork gets worked out. I don't mean to scare you off, but like the boy scouts say, be prepared. And don't expect a lot of help from the border services agencies on either side. Read the fine print!

Chris

[spiff]

Two other things:
If the car is 20 years or older, there's no duty paid, only GST and PST (if applicable).

Also, when you get to the border on the US side to cross into Canada, you have to get there during business hours M-F to allow them to match up the copy of the title you faxed 72 hours prior (ie. 3 business days).

I brought my 1980 911 SC in last fall, and had no issues at all. I wouldn't think twice about doing it again....

[speedracer]

Originally posted by spiff
Two other things:
If the car is 20 years or older, there's no duty paid, only GST and PST (if applicable).

I just brought a 21 year old 911 in and I had to pay duty, so I am not sure about the no duty thing..

[jjflash]

Originally posted by spiff
Two other things:
If the car is 20 years or older, there's no duty paid, only GST and PST (if applicable).

What are "GST" and "PST" -- do they charge sales tax twice??

[imcarthur]

Short answer: yes.

Long answer: PST is Provincial Sales Tax which is charged on all retail sales - including used cars. It is paid when the car is plated. Some provinces (Alberta at least?) have no retail sales tax. GST is Goods & Services Tax a handy invention by the Feds to replace an old Fed import tax. It is now charged at retail for all goods & services - yes, a tax paid on labor too. And collected for the Feds by every store, company, self-employed professional, salesman in the country. If you buy a used car privately (not from a dealer & don't import) you can avoid this tax.

So, yes.

Ian

[ThePointman]

FYI ...

The 6.1 percent is a levy nota duty, it is paid on all cars imported into Canada that are not made in Canada, USA or Mexico.

[Black968]

I just brought my 86 930 into Canada 3 weeks ago. I did not pay duty and was very surprised. I rented a U-Haul car trailer (49.95 /day) and brought mine back myself. Make sure the title is CLEAR or you are SCR****. Also, do your homework. Check out this site. http://www.riv.ca/

Cheers

[ThePointman]

My understanding from the Canada web site is that if the car is 15 years old or older you do not have to go through the RIV program. Did you pay any levies for the car not being made in Canada, Mexico or the US? Better yet what fee's or taxes total did you pay and to whom? And were the fee based upon the Canadian purchase price?

How do I check that the title is clear in the US? The CarFax report show lien or loan so I take that to mean the title is not clear. This will cause the problems that you speak about?

[Strugs]

I have seen a lot of discussion about duties, taxes, permits, etc., but what about payment? If I make an offer to a US based owner, they likely will not accept VISA... I know my bank (Royal) puts a 60 day hold on US checks and money orders, so would the US banks have the same issues with a Canadian bank money order?

[imcarthur]

Here is a scan of the custom's invoice for my 87 that I imported in 2004.



Pointman

Yes, they still charge a duty & call it a duty. See Box 33 & 38 above. 6.1% for cars from Germany. You also pay $100 Excise tax for Air Conditioner.

It has to have a clear title (no liens) to clear US Customs. If the PO has a loan against it, that is registered against the title. The loan would have to be paid in full & title cleared before importation. I don't know the procedure so check with the state's DOT & US Customs before proceeding.

And yes, if the VIN plate confirms that the car was actually made more than 15 years ago RIV is not necessary. For example, as of today, May 21, 1991 would be acceptable.

Strugs

Bank to bank transfer is all that works for fast & safe cross-border payment. I got all banking info from the PO & I verified execution with her bank manager a couple for hours after the transfer. It was easy but there is an element of risk because for a brief period, you won't have the cash or the car.

Ian

[ThePointman]

So it looks like you paid only 6.1% duty and the A/C levy, no GST?

I just want to make sure I have all my numbers correct. It seems coordinating the payment of the monies may be tricky if I buy the car I am looking at.

[Christien]

No, he paid GST - bottom right box - 1365.26. Everyone pays GST at the border, even wholesalers (dealerships). Difference is dealerships get it back. Sort of an interest-free loan to the gov't.

[imcarthur]

Yup. GST at right.

Here's the math.

Cost (from invoice or Bill of Sale) in US converted to CAN
+ 6.1%
+ $100 CAN
7% GST is paid on the total

The only other border costs were $55 US to search title on US side & $200 - $250 for your broker, if you use one.

Then to plate it (in Ontario):

Safety Check & Smogging Costs.
Appraisal cost (new in late 2004).
PST on appraised value & plate cost.

Ian

[ThePointman]

If a broker only costs me $200 - $250 CAD I will be happy as I have a GST voucher from ICBC as my previous car was written off, the voucher is good for up to $1925.00 CAD and can't use it if I import the car myself. It can only be used by a GST registrant. So basically if I use a broker and he is say $500 or less CAD I will save about 1K over doing the whole process myself.

[imcarthur]

Possibly or . . .

When you import a car (or a Broker imports it for you) you must become a GST registrant. My broker registered me since technically I was the importer & he was just facilitating. If self-importing, I assume you must register too. Not only do they charge GST but only a registrant can generate it. That's you.

So either way you should be able to use your voucher. I assume it will be good for tax & duties too?

Ian