Importing a Vehicle into Canada. Canada Border Services Agency

Transcription

1 Importing a Vehicle into Canada Canada Border Services Agency

2 Intent of Seminar The Canada Border Services Agency s role is to manage the nation s border by administering and enforcing domestic laws that govern travel and trade. Border Services Officers are at Canada s entry points to help you when you import a vehicle into Canada. 2

3 What is a Vehicle? Car Truck Motorcycle Van Motor Home All Terrain Vehicle (ATV) Recreational, camping, boat and horse trailer 3

4 Role of Canada Border Services Agency CBSA collects the duties, GST and Excise Taxes Examines the Vehicle Reviews required documentation Issues the Vehicle Import Form (Form 1) or the Vehicle Imported for Parts Form (Form 3) 4

5 Customs Duties & Taxes GST rate is 5% Excise Taxes PST may apply when you license the vehicle Duty on vehicles is 6.1% (non-nafta) Motorcycles are duty-free Vehicles over 25 years old and their parts are duty-free 5

6 Value for Duties and Taxes Price Paid or Payable Foreign sales tax (if charged) Warranty payment Auctioneer Fee Credit for Trade-in 6

7 Excise Tax on Vehicles Automotive Air Conditioners ($100.00) Green Levy (fuel inefficient passenger vehicles put into service on March 20 th 2007 or later) 7

8 CBSA Example: 2005 Automobile (non-nafta) Purchase Price USD $20, Exchange Rate 1.10 Value for duty (converted to CND) CND $22, Duty (6.1%) $1, Excise Tax (Air Conditioner) $ Total (Value for GST) $23, GST (5%) $1, Total $24, Duty & Tax paid to CBSA $2,

9 The Green Levy Applies to imported new and used passenger vehicles put into service on or after March 20 th Passenger vehicles that have a weight average fuel consumption rating of 13 or more litres per 100 kilometres are subject to the Green Levy 9

10 The Green Levy Fuel consumption is based on an estimated annual fuel use and fuel cost with an annual driving distance of 20,000KM with a mix 55% city driving and 45% highway driving. 10

11 The Green Levy 13 to under 14 litres per 100km - $ to under 15 litres per 100km - $ to under 16 litres per 100km - $ or more litres per 100km - $

12 CFIA Requirements To protect Canadian agriculture, imported vehicles are required to be free of soil and related matter that can carry harmful pests. If there is evidence of soil or mud a minimum inspection fee of $43.00 may be charged. If the inspection requires the un-crating or the destuffing of a container, the warehouse may charge an examination fee. 12

13 CFIA Requirements If the vehicle is found to be contaminated, at his or her own expense the importer must have the vehicle sanitized and power washed by an authorized cleaning company. 13

14 U.S. Requirements Vehicles imported from the U.S. must be reported to U.S. Customs 72 hours prior to export U.S. Customs and Border Protection will examine the vehicle and stamp the original copy of the title upon export. 14

15 Required Documentation Statement of Origin Issued by the manufacturer on a new vehicle sold to the consumer for the first time. The Statement of Origin is presented to the license bureau which in turn will issue the owner with a Certificate of Title. If the vehicle has never been licensed, the Statement of Origin may be presented at the border. 15

16 Required Documentation Certificate of Title Issued by the state (Department of Motor Vehicles) in the case of vehicles imported from the U.S. or by the applicable government authority in the country of export. Provides all the relevant information on the vehicle. Shows if the vehicle is a flood vehicle, salvaged vehicle, salvaged un-rebuildable or repossessed. 16

17 Required Documentation The Statement of Origin or Certificate of Title should accompany a vehicle sale and must be provided to CBSA at the time of importation and the provincial authorities at the time of licensing. The statement of Origin or Certificate of Title should not be confused with the registration card. 17

18 Required Documentation Bill of Sale An invoice or bill of sale should be presented at the time of importation. If this is a private sale, a letter from the seller should be presented. 18

19 Required Documentation Appraisal Certificate If there is no bill of sale then an appraisal certificate from an authorised dealer may be presented as proof of value. 19

20 Transport Canada Prohibited Vehicles Kit Cars (unless proof is provided that the was assembled 15 years or more prior to importation) Grey Market or Foreign Market Vehicles that have not been modified to meet U.S. standards Vehicles manufactured for a foreign market 20

21 Transport Canada Age Restrictions Vehicles imported from any other country other than the U.S. are prohibited unless they are: 15 years old or older Are special ordered, manufactured for the Canadian market and are current year models There is no age restriction on vehicles imported into Canada from the U.S. 21

22 Transport Canada The Registrar of Imported Vehicles This program regulates and controls the admissibility of imported vehicles less than 15 years old based on federal safety standards. 22

23 Registrar of Imported Vehicles Form 1 (Vehicle Import Form) Always verify admissibility with the Registrar of Imported Vehicles before purchasing a vehicle from the U.S. If you are importing a vehicle from any other country, verify with Transport Canada for admissibility. 23

24 Registrar of Imported Vehicles Form 1 (Vehicle Import Form) Fees $ GST (if entering through a Quebec Port of Entry add PST) CBSA will stamp the top right hand corner and give the importer two copies. Vehicle recall letters will also have to be forwarded to the registrar s office. 24

25 The Registrar of Imported Vehicles Vehicles 15 years old or older are not required to enter the RIV program. The Vehicle Import Form 1 will be required by the provincial authorities when you license your vehicle. 25

26 The Registrar of Imported Vehicles Form 2 (Modification Letter) The Form 2 will be mailed to the importer explaining the next steps. The Form 2 lists all necessary modifications required to make the vehicle compliant to federal standards. The importer has 45 days from the date CBSA issues the Form 1 to complete all modifications and have the vehicle pass the inspection. 26

27 The Registrar of Imported Vehicles Compliance Label An authorized mechanic will inspect the vehicle after the modifications are completed and stamp the bottom right corner of the Form 1. When all the documentation is complete, the RIV will forward the compliance label to the importer. 27

28 Vehicle Importation for Parts Form 3 When importing a vehicle for parts the importer will receive a Form 3 instead of a Form 1. Vehicles entering for parts pay a fee of: $ GST (if entering through a Quebec Port of Entry add PST) 28

29 Gift If the car is a gift or the value cannot be determined, and appraisal certificate from an authorised dealer may be required to determine value. If the vehicle is a gift from an immediate family member you may be exempt provincial sales tax. (Transport Canada and RIV requirements still apply) There is a $60.00 exemption per gift. 29

30 Bequests Vehicles owned and used by a resident of Canada who dies abroad are exempt when bequeathed to a resident of Canada. Vehicles received by a resident as a result of a death or anticipation of death of a non-resident on the condition that the goods were used abroad by the resident. A copy of the deceased's will or documents issued by the probate court is required. (Transport Canada and RIV requirements still apply) 30

31 Settlers Settlers may import their vehicles duty and tax free if they owned, possessed and used the vehicle prior to their date of landing. (Transport Canada and RIV requirements still apply) This exemption does not apply to commercial vehicles. 31

32 Returning Residents Returning Residents living abroad for more than one year may import their vehicles, $10, of which is duty and tax free. (Transport Canada and RIV requirements still apply) They must have owned, possessed and used their vehicle for at least 6 months prior to their return unless they have been absent for more than 5 years. This exemption does not apply to commercial vehicles. 32

33 CBSA Both settlers and returning residents must agree to keep their vehicle for at least one year after importation. If your vehicle does not meet all the requirements of CBSA and Transport Canada, you must export or destroy your vehicle at your own expense. 33

34 Temporary Importations Generally Canadian residents may not import a vehicle temporarily. Exceptions Commercial, evaluation, testing, exhibition purposes or demonstration (D-8-1-1) Special Circumstances (D2-4-1) 34

35 Temporary Importations Visitors and Temporary Residents may bring their vehicles into Canada duty and tax free. A deposit may be required. The vehicle may not be sold or disposed of while in Canada and must be exported at the end of the visit. 35

36 Exporting a Vehicle All vehicles permanently exported must be reported to CBSA. The vehicle identification number (V.I.N.) must be indicated. 36

37 Provincial Ministry of Transportation The importer must comply with all provincial requirements and this could vary from province to province. Each province or territory regulates vehicle licensing. Provincial taxes vary from region to region and are collected at the time of registration/licensing. 37

38 Provincial Requirements Flood vehicles are prohibited and may never be licensed. Certain provinces enforce emissions certifications and motor vehicle safety certifications. Other certifications may be required depending on the province of registration. 38

39 Provincial Requirements All relevant certificates as well as the vehicle title, proof of insurance, Customs Accounting Document (B15) and two copies of the double stamped certified Vehicle Import Form 1 must be presented to the provincial or territorial licensing authorities. 39

40 Provincial Requirements If you are thinking about becoming a motor vehicle dealer you should be aware that there are strict rules regarding the licensing of motor vehicle dealers. The governing body controlling vehicle dealer licensing varies from province to province. (Ontario Motor Vehicle Industry Council) 40

41 Provincial Requirements All motor vehicle dealers and sales people must be registered under the Motor Vehicle Dealers Act (MVDA) before engaging in the business of buying, selling and leasing vehicles. In the industry, unregistered individuals selling vehicles are known as Curbsiders and are subject to prosecution. 41

42 Licensing Required Documentation Title Bill or Sale or Appraisal certificate Form 1 (2 copies) Canada Customs Accounting Document (B15) Recall Letters Proof of Insurance Depending on Province Motor Vehicle Safety Certificate Emissions Certificate 42

43 CBSA CBSA CFIA Transport Canada Transport Canada Vehicles 15 yrs or older Vehicles less than 15 yrs Visitors, Temp Imports Province RIV Province 43

44 CBSA All levels of Municipal, Provincial, Territorial and Federal Departments and Agencies work together to ensure that the regulations governing motor vehicles are enforced to protect the safety of all Canadians. 44

45 Information Memorandum D Acts and Regulations of Other Government Departments Importation of Vehicles Memorandum D Prohibited Importations Importation of used or second hand motor vehicles 45

46 Information Registrar of Motor Vehicles Canadian Food Inspection Agency

47 Information Transport Canada Or

48 Information US Customs & Border Protection (Ogdensburg) (Alexandria Bay) xport_docs/motor_vehicle.xml 48

49 Information Natural Resources Canada (fuel efficiency ratings) Ontario Ministry of Transportation

50 Information Vehicle History Report National Insurance Crime Bureau Insurance Bureau of Canada 50

51 Contact Information Canada Border Services Agency Northern Ontario Region Trade Compliance Division 2270 St-Laurent Blvd. 1 st Floor Ottawa, ON K1G 6C4 Border Information Services (E) Abroad: or Website: For more information: Memorandum D

52 CBSA Thank you! Any questions? 52