Declaring Car from the US

[msabarish]

Hi PMM/Leon

Would appreciate your expertise...I landed as a permanent resident in Canada last year, but did not declare my car in the US. I will be migrating permanently to Canada from the US end of this month and thought it would be useful to take my car to Canada. I have had this car since Sept 2006, before I even became a landed immigrant - if I tell the Customs officer that I've had this car since Sept 2006 and show them proof, would I still be required to pay duty on the car? I have a 2006 Honda Civic Lx sedan - how much duty would I have to pay if the officers insist that I pay duty on the car?

Thanks for your help.

[PMM]

Hi

Hi PMM/Leon

Would appreciate your expertise...I landed as a permanent resident in Canada last year, but did not declare my car in the US. I will be migrating permanently to Canada from the US end of this month and thought it would be useful to take my car to Canada. I have had this car since Sept 2006, before I even became a landed immigrant - if I tell the Customs officer that I've had this car since Sept 2006 and show them proof, would I still be required to pay duty on the car? I have a 2006 Honda Civic Lx sedan - how much duty would I have to pay if the officers insist that I pay duty on the car?

Thanks for your help.

1.  It depends where it was built, it was built in the US or Canada there is no duty, check the plate inside the front drivers door.  Otherwise you will have to contact CBSA for the duty rate.
2,  Don't forget that you have to export the car from the US http://www.cbp.gov/xp/cgov/trade/basic_trade/export_docs/motor_vehicle.xml  and have to import it to Canada www.riv.ca 
3.  Note you have own the car, before exporting as there are very few if any lenders that will let you export their property.

PMM

[msabarish]

Thanks PMM. The car has been manufactured in the US, will CBSA allow me to import the car WITHOUT DUTY even though I haven't listed the car in my Goods to follow list but have owned the car before I became a landed immigrant?

[links18]

Duty and taxes are two different things. You don't pay duty on a vehicle made in the U.S., but you may have to pay GST and provincial sales tax on the fair market value. 

[HBeach78]

Be sure to Export the vehicle from the USA before Importing it into Canada... The USA requires that you Export the vehicle before it is imported, where as Canada does not require you Export the vehicle before importing...

Things at the border will go smoother if you are the owner of the vehicle and you know the estimated retail value before hand. You can check on http://www.kbb.com/ to get a good estimate. The only fees at the border are those for importing the vehicle, which is $204.00... but you also have the option to pay that fee with in 45 days of landing. You can pay at the border by credit card/cash or online at  www.riv.ca  Once you have paid the fee to import your vehicle, you will get an email that will instruct you print the form attached and head over to a Canadian Tire for the Federal Inspection (no fee for this)...Once that is done you have to pay a visit to a Registry and get an "Out of Province Inspection" request form at which point you will need the Form1 that was given to you at the border.

Once you have the request form, you can get the Out of Province Inspection done (which cost  @  $190.00) You need to obtain a driver's license and car insurance before registering the vehicle.

Things to have before crossing the border:
Proof of ownership like the bill of sale, and the Title...
Proof of car insurance...
An estimated value of the vehicle...
A copy of your driving record, to show your new insurance company...

Things to do after you land:
Apply for your Social Insurance Card...
Get mail coming in your name, utility bill, bank statement, credit card statement, rental agreement to prove place of residence. (cell phone bills don't count, trust me)
Get your new driver's license and get the Out of Province request form,show your Form 1 and bill of sale and your Passport
Get the Federal Inspection done...
Get the Out of Province Inspection done, you now have 14 days to get insured...
Get car insurance...
Get the vehicle registered...

I just finished getting my car all sorted today... New Alberta plate and everything

Good Luck

[max101]

Hi PMM/Leon

Would appreciate your expertise...I landed as a permanent resident in Canada last year, but did not declare my car in the US. I will be migrating permanently to Canada from the US end of this month and thought it would be useful to take my car to Canada. I have had this car since Sept 2006, before I even became a landed immigrant - if I tell the Customs officer that I've had this car since Sept 2006 and show them proof, would I still be required to pay duty on the car? I have a 2006 Honda Civic Lx sedan - how much duty would I have to pay if the officers insist that I pay duty on the car?

Thanks for your help.

If this the first time you are settling in Canada, then you do not need to pay any taxes while importing your goods and car. In the custom forms you can check mark the "Settler" section. It does not matter if you have landed before to activate your PR.

if you pay taxes then it could be as much as 15% (GST, PST, Duties, etc). But I don't think you need will be asked to pay any taxes if you are settling for the first time.

[links18]

The OP failed to declare his car when he first landed at PR. Doesn't that mean he will pay taxes on it?

[Mar123]

1

[max101]

The OP failed to declare his car when he first landed at PR. Doesn't that mean he will pay taxes on it?

Actually No, even if he did not include the car in Goods to follow list, if he is going back to Canada to settle for the first time, they will allow to import without tax. I imported my own car that way when I moved to Canada. They give one time tax exemption for first time settlers. On the Customs  form, there is section where you can checkmark "Settler". They have good information in the Canadian Customs website.

[links18]

Actually No, even if he did not include the car in Goods to follow list, if he is going back to Canada to settle for the first time, they will allow to import without tax. I imported my own car that way when I moved to Canada. They give one time tax exemption for first time settlers. On the Customs  form, there is section where you can checkmark "Settler". They have good information in the Canadian Customs website.

Well, I wish I knew that. I landed in Feb. 07 and returned to the U.S., I purchased a vehicle after that date as I wasn't sure exactly when I would be moving. I was under the impression that since I didn't list it when I first landed, I would have to pay taxes and duties when I brought it to Canada, so I didn't bother to list it on any forms when I moved to Canada to settle in Oct. 07. The car is still sitting in the States. Is there anyway I can avoid taxes and duties on it when I finally bring it in to Canada?

[max101]

Well, I wish I knew that. I landed in Feb. 07 and returned to the U.S., I purchased a vehicle after that date as I wasn't sure exactly when I would be moving. I was under the impression that since I didn't list it when I first landed, I would have to pay taxes and duties when I brought it to Canada, so I didn't bother to list it on any forms when I moved to Canada to settle in Oct. 07. The car is still sitting in the States. Is there anyway I can avoid taxes and duties on it when I finally bring it in to Canada?

In that case, I don't know for sure. I think it is worth to ask the customs. You could explain that you owned that car before you settled in Canada and but due to misunderstanding, you did not include in the declaration list. I would even suggest to fill the goods to follow list now and go to customs office and request them to stamp it. The Purchase receipts etc of the Car will be helpful. I think it's definitely worth a try.

Also, if they ask you to pay taxes anyway, just want to mention that, if the Car is manufactured in north America, you don't need to pay the duties. Many of the foreign brand cars like Honda, Toyota are also manufactured in North America. It can be known by the VIN number. VIN numbers starting with a numeric digit should be duty free. That may save about 6%.

[links18]

In that case, I don't know for sure. I think it is worth to ask the customs. You could explain that you owned that car before you settled in Canada and but due to misunderstanding, you did not include in the declaration list. I would even suggest to fill the goods to follow list now and go to customs office and request them to stamp it. The Purchase receipts etc of the Car will be helpful. I think it's definitely worth a try.

Also, if they ask you to pay taxes anyway, just want to mention that, if the Car is manufactured in north America, you don't need to pay the duties. Many of the foreign brand cars like Honda, Toyota are also manufactured in North America. It can be known by the VIN number. VIN numbers starting with a numeric digit should be duty free. That may save about 6%.

I got an opinion on this from CBSA recently and they confirmed that yes I will have to pay taxes on the vehicle because I did not declare it when I landed as a PR. I don't entirely trust that opinion though as it does seem rather counter intuitive, but who knows. I will check with a lawyer I guess.

[ankj]

Hey

I am planning to declare a vehicle (which I will purchase later from US). I have few questions around this.

1) Can I do this? I have never been to US (just got my Visitor Visa to US).
2) Does the car really has to be less than 10,000?

Please suggest.

[steaky]

Hi

The vehicle has to be owned and used before you become a PR if you wish to import it as goods to follow and not pay taxes and duty.  The $10K is for returning Canadian citizens, abroad for more than 1 year.  You need to export the car from the US.  http://www.cbp.gov/xp/cgov/trade/basic_trade/export_docs/motor_vehicle.xml  and import it into Canada www.riv.ca