2006-04-04

How to import a car into Canada (w/ BC specifics)

Today I *finally* finished the arduous process of getting my car imported into Canada. Turned out to be more complicated and *way* more expensive than I expected. Since each step of the way incurred more steps and details than I was told in the previous one, I figured I should list out all of the required steps here.

First, you must export your car from the States. This involves notifying US Customs and either faxing in your car's Title or dropping off in person. You must do it three business days before you cross the border into Canada. And those three days do not necessarily include the day you drop it off. And remember, being a government organization, they take all the major holidays.

Next, you cross the border (you should use Pacific Highway if you are coming across using I-5). There the border patrol will redirect you to the customs office to import your car. Inside you will have to fill out a Form 1 (you will need your Title) and pay duty on your car (I didn't because they classified me as a settler and my car was my only declared property, but it will vary from person to person). You will have to pay the import fee ($261 if I remember correctly) regardless of duty. Also realize that when you import your car you are not allowed to sell it for a year. So if you don't plan to keep your car, dump it in the States and not Canada!

While you wait for your Form 2 (discussed later), get a Recall Clearance Letter. You need to contact your car's manufacturer and get a letter from them stating that there is not a recall for your car. That will cost a little (about $30 for GM Canada) and they need your VIN (actually, they need that every step of the way). You can also have it faxed to Canadian Tire when you go in for your inspection (also discussed later), but since you are going to wait quite a while anyway for your Form 2, you might as well just do this step ASAP.

You then wait for your Form 2. Now they say 10 days, but that is a lie. Even if you thought it was 10 business days it will come later. My Form 2 was not mailed to me until 23 days after I started the import process.

Once you have your Form 2, Form 1, you car's Title, and Recall Clearance Letter (if you don't have it yet you can have it faxed in to the auto shop directly), go to your nearest Canadian Tire for a governmental inspection (for Canadian newbies, Canadian Tire is like a high-end Sears specific to Canada). If you are moving to BC there is also a provincial inspection. Now be warned, this could be very expensive. The safety checklist is crazy; I had to have the water bottle for my windshield wiper fluid replaced because it replaced. You also must have daytime running lamps on your car, so if you don't have that they will be added to your car. The governmental inspection cost is covered by your import cost, but provincial isn't and that is over $100 in BC.

At this point your Form 2 will be stamped and faxed to the federal government and you will get a copy with a sticker on it saying how long until you can sell it. You must keep that in the car. That is the end of the federal government stuff. But there is still provincial steps.

You then take all of your paperwork (Form 1, Form 2, Title), driving history from your previous insurer (do this ASAP since it takes forever to get and it is just another hassle to have it added to your record if you get it after the fact) and your license plates to an ICBC location (AutoPlan is the auto insurance name of ICBC) if you live in BC. I went to BCAA and they were very nice (if you are in Vancouver, the 41st St. location is especially nice). There you will get a Canadian Title of Ownership, Canadian registration, BC plates, and car insurance. You can either pay monthly or yearly. If you live in Vancouver or select other areas in BC, you might care which payment plan you go with. Monthly requires a voided cheque and you get a AirCare inspection (just like smog checks in California) within a month. If you go yearly you can put it on a credit card and don't need a check for a year until you renew again. You also surrender your old Title and plates and they destroy them along with notifying the States that you no longer have that car registered there.

An interesting thing about at least BC is that your sticker on your car specifies how long your insurance is good for. So unlike the US where your registration sticker signifies just registration but not insurance, in BC it means registration *and* insurance coverage. It even has the day your tags expire on top of month and day. Your plate number is also your policy ID. Perks when you live under a socialist government. Unfortunately it also means a ton of paperwork and money.

In the end this whole process, with a year's worth of insurance sans driving history (didn't know about it soon enough and so I am going to have to go through the hassle of adding it to my record later), the repairs, and the fees I spent CA$3,500. That total has led to my savings having $2 and change left in it and is more than the Kelly Blue Book in the States for it by about US$2,000 (luckily it is still less than the Canadian Blue Book value which is $5,000).

Lesson here? Don't import if you don't have to. Students do not have to. Turns out that the border patrol was hassling me for no good reason. Customs inside said I didn't have to go through this since I was a student. Had I known how much it was going to cost I would have listened to them, but Canadians being who they are, they didn't yell at me to get the point across that this was going to be costly and a huge hassle.

18 comments:

Vivian said...

thank god i'm not moving to Canada any time soon. :) j/k

Anonymous said...

Poor step by step. Pricing incorrect. missing excise tax and others.
must have horrible memory or something, documenting is obviously not your specialty.
FOR THE REAL DEAL ON STEP BY STEP and COSTS.. call 1-888-848-8240, they will tell you everything.

Anonymous said...

I agree with Anonymous, this is of no value whatsoever and that is why the Internet is mostly a waste of time. Do your own proper research. Contact www.riv.ca for the truth.

Unknown said...

OK, I am going to not censor the negative comments, but people do not need to be so rude about this. I in no way claimed I was an expert or represented the Canadian government. I am just some kid who had to import his car from the States to Canada and decided to write down what it took (which is why there is no excise tax; border counted me as a returning immigrant with my car being part of the goods I brought with me when I immigrated).

Obviously people should do more official research since you can't point at my blog as why you missed a step. But personal insults are not called for. Just thought people might like to know what it took for me to import my car so they have an inkling of what it takes.

Anonymous said...

hey brett

nice post~
what were the duty rates?

Are these numbers correct?
duty 6.1% gst 6% and
pst 7.5%

so i were to import a car from U.S, I will have to pay 19.6% of the car price in Can $??

Thnaks for your help

Dave

Unknown said...

GST is 6% and BC PST is 7% (it varies by province). The duty rate varies by good and I don't know what it is for cars.

Anonymous said...

I imported my car last summer. It does help to do your own research throught the government and other non government websites. One thing to note is that if your car is more than 15 years old the process is much less arduous as the car is not subjected to the fees and many of the import rules. I do agree that unless you're absolutely sure you want to keep your car until it dies it is worth giving serious consideration to selling your car in the US and buying one here in Canada. The BC inspection (this is socialist government at it's "best" cost me $1300 cdn in repairs to bring it into BC compliance for a car that I paid $1300us.
Also things tend to be very individual. Although I mailed my documents 5 days in advance US customs claimed they hadn't received it. However, I was still processed on the day I showed up partly because my car is old and didn't have to comply with all the regular requirements and because I was very polite and deferred to the officers
"power and awe" I find US customs/immigration officers like that.

Anonymous said...

Obviously, you should do your research on used car price before you decide to import. Specifiacally, for the cars under $10000, you should always be very careful.
But for cars of high demands such as BMW, Lexus, Infiniti, etc. you will definitely save A LOT of money. Also, if you ever decide to resell the vehicle to a private buyer in Canada, you might profit enough to purchase a better vehicle from US!
(in my case, 2002 BMW 325i ($14400) -> 2004 BMW 330ci ($18500))

The whole process of importing is not that painful. I think the writer had a particularly bad experience, but not all import cases are like this!

Mr Lady said...

I see that you wrote this a *long* time ago, and if you are still replying to emails about this, I have a question for you.

First, though, as an American bringing a car over, I have to back you up on the steps and the cost. I have paid about the same so far, and actually have had a few MORE hurdles than you to jump through.

My question, if you can answer it, is this...Students do not need to import. Do you know if temporary residents do? I just got a $5000 estimate for my provincial work, much of it cosmetic. I don't think the whole car is worth $5000.

I have looked and read everywhere, and i can't find an answer. Google sent me to you.

Thanks for your help!

Unknown said...

@Mr Lady:
Sorry, I have no clue. I would contact ICBC and see what they have to say.

Anonymous said...

I just purchased 2007 Corvette from dealer in Texas and drove it back myself. Went to a seminar the Border Services has every few months and had all paper work in order. I was at U.S.Customs for 3 minutes and Canadian Customs for 15 minutes. Saved $25000.00.Totally hassle free

Anonymous said...

Thanks, Brett, for taking the time to write down your experience. I imported a car at about the same time (2004) and it was very much as you described (plus the lovely bonus that they didn't believe the deal I got on the used BMW so the Canadian Customs grilled me for over 3 hours...nor did they believe it was made in the US- I finally had to get BMW in Toronto to fax them a letter saying it was made in South Carolina). Anyway, it was a major pain in the butt, but I did save a bundle, so in the end it was worth it.

Kallyn said...

To all those jerks who felt like it was necesssary to respond so negatively to Brett, shut the hell up. Thank you for taking the time to write that all out. Even though it may not be completely accurate, I think the steps and what happend with your personal experience helps others who have no idea what it takes. To Mr. Lady: I am on a visitor's visa here in Vancouver. My car is still registered in Washington and I have insurance in WA that covers me out of the country. They told me since I am a visitor, I do not need to import my car. It would only be if I became a permanent resident. Hopefully that helps if you didn't have it answered already!

Anonymous said...

If you buy a car for a friend in Canada and are going to take it to them, you have to have a power of attorney in order to sign Form 1 for them. I got caught at the border without and waited 4 hours until person could fax said power of attorney.

Anonymous said...

Hi Thank you for writing this blog! Sadly, you are not too far from the truth as I have been hearing similar costs and painful steps, and I am sorry to hear (err read) that people feel you are being negative.
I even work at BCAA and I am astounded by the cost of auto insurance here not to mention annoyed by the government corruption of ICBC.
I am in the process of importing my car here and I have even delayed it until I figure things out(Cdn govt is not pleased with me but are polite to let me keep it here!)
It sounds like I might be better off sending my car back to the US?

Anonymous said...

Great post, extremely helpful. But how does the fact that one is a student change anything in the importing process?

Unknown said...

@anonymous Being a student doesn't change anything to my knowledge.

Anonymous said...

It's almost as crazy if you "import" a car from elsewhere in Canada. I had to do $700 in unnecessary repairs. I think the absurdly high mechanical standards were written during the era when the province was ruled by car dealers. There is no impirical evidence that mechanical fitness programs are worth the cost.

Also, because the car was given to me by a parent, I had to prove that PST in Ontario had been paid way back in 1992. Fortunately the donor can just swear to this before a notary.