Importing An Auto Into Canada? Confused?

u are a resident of Canada you most likely will havemay have warned you of the perils of loss of service
seen many stories on the media – whether it isprivileges if you purchased the vehicle outside of their
on TV or in the Globe and Mail or your localsales areas.
newspaper that car prices are much less expensive inYou may consider that it is wrong, unethical or immoral
the United Sates than in Canada. You may haveto import a U.S. car into Canada. True most people like
wondered if you can save money and is it worth theto be loyal to their local merchants. However under the
effort. Yes it can be less expensive and well worthNAFTA (North American Free Trade Agreement)
the effort. However it is a simple matter of doing yourcars are shipped back and forth among the NAFTA
homework thoroughly and following the rules accordingtrading area (the U.S.A., Canada and Mexico) without
to Government of Canada Transport Canada and theextra tariffs and taxes. This has benefited the car
Registrar of Imported Motor Vehicles of themakers greatly – allowing for reductions in costs
Government of Canada. It is not a very complexdue to specialization of factories and economies of
procedure, which is too difficult. That is as long as youscale. Before NAFTA each car maker has different
follow the rules to the letter and in the correctfactories in each separate country manufacturing
sequence.select models and car lines. With NAFTA that can be
From the very beginning you must be stressed andscaled back to only several, larger and more efficient
you must understand that if you do not follow thefactories – each producing a certain model or
Canadian and American rules for importing andcar line for the entire NAFTA trading areas. If the car
exporting a vehicle you may well have very expensivemakers can benefit from the economies of scale of
auto, truck or S.U.V .stuck south of the border. As aNAFTA why not you as a consumer? You cannot
result you will not be able to bring this car into drive intohave your cake and eat it too.
Canada to drive register it or drive it in Canada as aInterestingly enough the humour is that same car,
Canadian citizen or resident... In that case you will eitherwhich you are importing into Canada, May very well,
be forced to sell your vehicle, at cost andhave been manufactured in Canada, for the North
inconvenience to yourself, to a person in the UnitedAmerican car market. You are in effect repatriating
States. It cannot be overemphasized that you have tothat vehicle home. If the car is not made in Canada, but
do proper research, check and either recheck thein the U.S. or Mexico, the same person and people will
rules, and then follow the auto importation rules exactlyhave their jobs regardless of whether you purchased
and to the letter.the car in Canada or in the U.S. The one person or
Many Canadians have saved substantial amounts oforganization that gets left out of the loop is your local
money importing cars from the U.S. into Canada. Thiscar dealer. True. However, it may be surprising for you
is even more so with the more expensive luxuryto discover, that most of the profits of a car dealership
brands and models.. Simply and exactly follow the rulesare from service work of your vehicle, not the sale. In
as laid out, on the government websites or on similarthis day and age of computerized, technically difficult to
pamphlets. If you are not sure – then ask .Eitherrepair automobiles, who are you going to take your car
email, phone or both It’s only a phone call or anto for service, both warranty and non warranty
email away. Nothing difficult. It all comes down torelated. The answer is that your service work, in most
simple preparation. If you prepare well not only arecases, will be done by your local dealer, whom you
these officials more than facilitating and happy to helpwish to support.
you out. They will even assist you in either of theThe basic rules in importing a car into Canada are as
official languages of Canada- French or English. It canfollows. First consult the Government of Canada site
be said that in the end the departments will be– Officially the “Registrar of Imported
collecting the same taxes in any event. On top of that,Vehicles “, also called Riv. This can be done by
the humour is the best chance is that the vehicle itselfphone, email or both.
was manufactured in Canada in the first place.Transport Canada issues a comprehensive
You may have heard many, if not dozens, of mythical“List of Vehicles Admissible from the United
stories of Canadians who saved vast amounts on carStates”. This is your initial bible to consult
purchases by importing cars from the U.S. into Canada.– both in terms of admissibility and inadmissibility.
Contrary to your research and readings you may wellNote that certain model years may have different
encounter skeptical and downright misleadingrulings. It is up to you to do a thorough a complete job
information from either local car dealers orof research. Again phone, email to check and recheck
manufactures when you conduct research or readif you are unsure or doubtful..
articles in your local newspapers or on CanadianBefore exporting the car from the United States, you
television programs. Such objections may includewill have to fax U.S. customs the relevant documents
statements such as “The savings (except for72 hours in advance. Next you will have to follow the
the highest end luxury cars) are minor.””procedure outlined at the Riv site of “What to
The cars are not the same.” “, Thedo at the Border”. This involves documentation,
manufacturers will not honor new car warranties onthe paying of certain fees and taxes and within a set
new cars bought in the U.S. and imported / shipped intotime an “Imported Vehicle Inspection”
Canada. “These answers are either false orand certification by an approved automobile service
mistruths taken out of context. It all comes down toagency. If modifications need to be done to bring the
your research. Take time to clarify your research bothcar into line with Canadian standards, these must be
to reassure yourself, to verify and as well eliminatedone. Certification again must be done by the
false, wrong information and misconceptions andapproved repair facility.
answers taken out of context. Again the correctLastly remember that cars manufactured within the
answers may only be a phone call, email or oneNAFTA trade zone do not pay extra duty. However
webpage awayextra duties on cars manufactured outside the U.S.,
You will save a fair chunk of cash. All that matters inCanada or Mexico may be demanded. By Canada
the end is the final price of the product delivered toCustoms. Again it is your responsibility to do your
your door, driveway or parking spot. This is true inhomework.
many, if not most cases. Again in the end all thatEnsure that your paperwork is correct. Pay particular
matters in pricing out your car is what it costsattention to the declared value of the car. Ensure that
delivered to your door – with all taxes andthis is the correct figure that you paid. Do not attempt
charges included. Even after including all of theto have a “false bill”. The Canadian
Canadian taxes and extra costs involved, in mostborder authorities have at their disposal accurate
cases, you will save a bundle. To the largest degreeinformation as to market value of the car, truck or
currency fluctuations have made this so. The rise inSUV in question. This is their business and they do the
the Canadian dollar has made this so. It may also betime. If you got a good deal fine. It does not make
argued that the retail car industry in the U.S. is muchsense for the sense of saving a small amount of
more competitive than in Canada reducing prices bytaxes paid to under declare what you paid and risk
competition.fines , penalties and even seizure of your value priced
In terms of warranty coverage it is true thatvehicle. Most likely you have saved so much money
manufacturers do not cover warranties on U.S. carsalong the way, and even had a brief holiday as well.
imported into Canada. However the vast majority ofWhy push your luck and take foolish chances for no
car makers do cover the warranties. It’s up togood reasons.
you to do your homework. Again either phone or email.This is a basic explanation of the steps required to
It’s always best to get the answer in writing. Atimport a car into Canada from the U.S. There may be
the worst case with some brands, if you are beingadditional steps involved, in your specific case. Rules
actively discouraged from purchasing the car, since it ismay change over time, either overall or in specifics.
a case that the factory warranty will not be honored ifIt cannot be overstated that you must do a thorough
the American purchased car is registered in Canada,and complete job of research – either by phone,
then if the savings warrant it, and the car is of a highemail or both.
quality product line, it all comes down to final costWritten documentation is most preferential over verbal.
savings. If savings are substantial and warrant theCheck and recheck. If in doubt phone or email.
costs – then there are no shortage of veryAt this point in time, many Canadians have purchased
reputable third party warranty coverage providers ,a car in the United States and imported that vehicle
who will gladly sell you extended warranty coverage.into Canada. These smart consumers have found that
The humour will be that in most cases the actual workthe cost savings on purchasing their vehicle well
will be provided by the factory authorized dealeroutweigh their investments in time, efforts and extra
service department – the very organizations thatwork involved.