3 Steps For Permanently Importing Car From Canada To US – Easiest Guide
About 70 percent of the $648 billion in trade between the US and Canada moves by truck, and automobile transports are a significant part of this figure. When importing a car from Canada to US, many Americans are discovering it as a viable option for finding their next vehicle, whether due to better pricing, unique models, or relocation needs. Here’s how to import yours in 3 steps:
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Permanent Vehicle Import from Canada to the US is More Common Than You Think:
Leading cross-border auto transport companies like Canadian Car Shipping are seeing increased vehicle imports from Canada to the US because of the rise in people migrating from Canada to the USA.
Source: CBC Canada
Key Insights:
- Total migration increased by 67% from 2012 to 2022
- Canadian-born migrants increased by 50%
- Foreign-born migrants from Canada increased by 154%
The data shows that people migrating from Canada to the US nearly doubled in just 10 years (from 75,752 in 2012 to 126,340 people in 2022). This means many people are moving to the US, meaning many more vehicles are being shipped. This also helps auto movers offer better and more affordable service because of more activity.
Permanently Importing Car From Canada to US in 3 Easy Steps:
Whether you’re moving to the US or buying a car in Canada and importing to the US, the process for import is quite simple. Here’s what to do:
Step#1 – Assessment Before Permanent Import Car From Canada To USA
Before you begin the process to ship a car from Canada to US, it is crucial to evaluate whether your vehicle is eligible and ensure you have the right documentation.
Skipping this step can lead to unnecessary delays, high costs, or even entry denial. Below is a step-by-step breakdown to guide you through the initial assessment phase for importing car.
A. Vehicle Eligibility
Not every Canadian vehicle qualifies for import. Knowing the eligibility rules will help you avoid setbacks and ensure your car import process goes smoothly.
Age Requirements
- Vehicles under 25 years old: These must meet all Federal Motor Vehicle Safety Standards (FMVSS). If your vehicle doesn’t comply, modifications through a Registered Importer will be necessary and expensive.
- Vehicles 25 years or older: Cars at least or older than 25 years are exempt from FMVSS requirements. These vehicles fall under the antique exemption and don’t need to meet modern safety standards.
Compliance Verification
All imported cars must comply with US safety and environmental regulations. Use the checklist below to verify compliance:
Requirement | Details |
FMVSS Certification | Check for a label on the driver’s side door or frame stating compliance with FMVSS. |
EPA Emissions | Ensure the “Vehicle Emission Control Information” label under the hood confirms EPA compliance and is in English. |
Tire Pressure Monitoring System (TPMS) | Vehicles from 2007 and newer must have a functioning TPMS that meets US standards. |
Bumper Standards | Vehicles made after September 1978 must meet US bumper height and impact specifications. |
Examples
Here are examples to help clarify:
- A 2015 Toyota Corolla Must comply with FMVSS, EPA standards, TPMS, bumper regulations, and theft prevention systems.
- A 1990 Honda Civic: Exempt from FMVSS but still requires EPA certification and compliance with bumper and theft standards.
- A 1975 Ford Mustang: Exempt from most requirements due to the antique vehicle exemption.
Once you have confirmed eligibility and compliance, gather the necessary documents and start the import car from Canada to USA process. Ensuring thorough preparation during this phase will make your journey from Canada to US seamless and efficient.
B. Required Documentation
To successfully import car from Canada to US, you need to gather all the required documentation in advance. Missing or incomplete import paperwork can lead to delays, penalties, or even vehicle rejection at the border. Below are the key documents you’ll need, categorized into primary and compliance documents.
Primary Documents
These documents prove your ownership and the history of the vehicle. Ensure all papers are up-to-date and error-free.
- Vehicle registration/title: Provide the current Canadian vehicle registration and title showing clear ownership.
- Bill of sale: If the car was purchased used, submit the original bill of sale or a recent one.
- Proof of ownership: Include additional proof, such as insurance cards or maintenance records, to confirm ownership.
- Canadian insurance documents: Provide a copy of your most recent Canadian insurance documents.
- Lien release (if applicable): If the vehicle was financed, obtain a written lien release from the lender confirming the vehicle is fully paid off or approved for export.
Compliance Documents
These documents confirm the vehicle meets US safety, environmental, and customs requirements.
- Manufacturer’s compliance letter: Obtain a written statement from the manufacturer confirming the vehicle complies with US safety standards. The letter must be on official letterhead and include your vehicle’s VIN.
- EPA Form 3520-1: Complete this form to declare that the vehicle complies with EPA emissions standards. You must have it ready before reaching the border.
- DOT Form HS-7: This declaration form is required for all imported vehicles to confirm compliance with Federal Motor Vehicle Safety Standards (FMVSS). Based on your vehicle’s status, select the appropriate compliance box.
- CBP Form 7501 (Entry Summary): This US Customs form declares the vehicle’s details, value, and duty calculation for import into the country.
Quick Checklist
Document | Description | Required? |
Vehicle registration/title | Proof of vehicle ownership from Canada | Yes |
Bill of sale | Proof of purchase (original or recent) | Yes |
Manufacturer’s compliance letter | Confirms US safety standards compliance | Yes |
EPA Form 3520-1 | Declaration of emissions compliance | Yes |
DOT Form HS-7 | Declaration of safety compliance | Yes |
CBP Form 7501 | Customs declaration and duty calculation | Yes |
Lien release | Proof of loan clearance (if applicable) | Conditional |
Preparing these documents and your vehicle for transport will make your Canada to USA vehicle import process smoother and prevent complications during customs clearance or compliance checks.
Step#2 – Border Crossing Process
This is where theory meets practice. The border crossing is your first physical checkpoint in the import process. Being well-prepared for this step can mean the difference between a smooth crossing and a frustrating delay.
Below, we break down the steps into manageable sections to help you avoid delays and complications when importing car from Canada to US.
A. Pre-Border Preparation
Preparing before you reach the border ensures a seamless car import experience. Double-check all requirements and communicate with the customs office at your chosen port of entry.
Schedule Appointment
- Contact the CBP office at your intended crossing: Call the CBP office beforehand to confirm procedures and requirements specific to your crossing location.
- Verify operating hours for vehicle imports: Some border crossings only process vehicle imports during limited hours, and others may require an appointment.
- Confirm document requirements: Certain ports may have additional requirements beyond the standard forms.
Required Fees
Before proceeding, calculate the fees you’ll need to pay. The primary costs include duty and administrative fees.
Fee | Details | Amount |
Duty | 2.5% of the vehicle’s value unless exempt under USMCA. | Varies (based on vehicle value) |
MPF (Merchandise Processing Fee) | If the car arrives by air, ship, or international mail, an administrative fee calculated at 0.3464% of its value applies. | $27.75 minimum, $538.40 maximum |
Harbor Maintenance Fee | This applies only if the vehicle arrives by sea. | 0.125% of vehicle value |
B. Border Inspection
The inspection process at the border involves two key stages: primary and secondary inspections. Each ensures that your import car from Canada to USA meets all US requirements.
Primary Inspection
- Declare permanent vehicle import: Clearly state that you are importing the vehicle permanently. This avoids confusion with temporary importation.
- Present all documentation: Keep all forms, receipts, and compliance letters organized and accessible.
- Direct to secondary inspection: Follow instructions from the CBP officer to proceed to the secondary inspection area.
Secondary Inspection
The secondary inspection involves a detailed review of your documents and the vehicle. Here’s what to expect:
- Complete customs forms: Fill out any additional CBP forms as requested.
- VIN verification: Customs officers will inspect the vehicle’s VIN to ensure it matches your paperwork.
- Safety inspection: The officer will perform a basic check of the vehicle’s safety features.
- Emissions verification: Officers will confirm that the vehicle complies with EPA emissions standards.
- Payment processing: Pay all applicable duties and fees, including those outlined earlier.
Tips for Smooth Border Crossing
- Double-check your documents for errors or missing information before arriving.
- Have sufficient funds or a method to pay fees at the border.
- Arrive during the port’s designated hours for vehicle imports.
Remember: Organization and preparation make the biggest difference when importing a car through a Canada-US border crossing. Keep your documents readily accessible in a file and keep a professional attitude throughout the process.
Step#3 – Requirements After You Import Car From Canada To USA
Once your vehicle has crossed the border, several steps remain to ensure it fully complies with US regulations. These include acquiring proper insurance, completing state registration, and paying applicable fees. Depending on their condition or type, some vehicles may also require additional inspections and documentation.
A. Insurance Requirements
US insurance is essential before registering your vehicle in at least 43 US states. You’ll also need to cancel your Canadian insurance and return license plates to meet legal requirements for both countries.
Cancel Canadian Insurance
- Obtain proof of cancellation: Request a written confirmation from your Canadian insurer that your policy is terminated.
- Return plates to Canadian authority: Follow provincial guidelines for returning license plates.
Obtain US Insurance
- Required before registration: You cannot register the vehicle without valid US insurance.
- Requires US address: Insurance policies require a valid US residential address.
- Coverage must meet state minimums: Ensure your policy is according to the minimum liability coverage required by your state.
B. State Registration
Registering your vehicle in the US is a state-specific process. You’ll need to provide documentation, complete inspections, and pay fees to obtain a new title and plates.
Documentation Required
- CBP entry summary: A stamped copy of CBP Form 7501 confirms your vehicle’s legal import.
- Original title or registration: Provide the Canadian title or registration documents.
- Proof of US insurance: A valid US insurance card or policy document.
- Manufacturer compliance letters: Documents confirming compliance with US safety and emissions standards.
- VIN verification: A state-specific form completed by authorized personnel, such as law enforcement.
- State-specific inspections: Depending on your state, safety, and emissions inspections may be required.
Fees and Taxes
State registration involves multiple fees, which vary by location and vehicle type. You can view the vehicle registration fees and taxes by state here, but be prepared to pay the following:
Fee Type | Description | Approximate Amount |
State Sales Tax | Tax on the vehicle’s value. Rates vary by state. | 0-10% of vehicle value (might be exempted if already paid in Canada) |
Registration Fees | Annual fees based on vehicle type and weight. | Varies by state, ranging from $8 in Arizona to $274 in North Dakota |
Title Fees | One-time fee for issuing a new title in the US. | Typically $5-$95 |
License Plate Fees | Cost for new plates, including specialty plates if chosen. | $0-$28 |
Let’s Take California as an Example. If you bring your Canadian vehicle into California and have paid the sales tax in Canada, you’ll likely be exempt from the 7.5% sales tax in California. So now you have to pay the registration, title, and license plate fees.
You can go to the Californian DMV’s fees calculator page and calculate the fees yourself. They will give you a list of fees that need to be paid based on your vehicle’s model, year, and value. Here’s an example of a 2005 vehicle valued at $7,000. The registration costs came out to $403.
Different states will have different fees. You can search Google for a registration fee calculator for the state you’re getting the vehicle into and get an estimate online.
Special Considerations Permanently Importing Car From Canada to US
A. Non-Compliant Vehicles
When you plan to import car from Canada to USA, non-compliant vehicles present unique challenges. Let’s break down the essential processes and requirements for importing non-compliant vehicles.
Registered Importer (RI) Process
If the vehicle is non-conforming (non-compliant), meaning it doesn’t have a manufacturer’s label that certifies it meets US standards, you will have to work with a DOT-registered importer (RI) to legally import that car.
Source: CBP
Step for Non-compliant Import | Requirement | Typical Timeline |
RI Selection | Choose from the NHTSA-approved list | 1-2 weeks |
Bond Posting | 1.5x vehicle value | 2-3 business days |
Modifications | Vehicle-specific changes | 2-8 weeks |
Certification | DOT approval | 1-3 weeks |
The car import process through an RI involves several detailed steps. Here’s what you need to know about car importing through this route:
- Locate a certified RI from the NHTSA database (currently 100+ active importers as of Nov 2024)
- Submit vehicle details and receive a modification quote
- Arrange transportation Canada to USA
- Complete the required paperwork with customs
Exemptions
In certain cases, vehicles may qualify for exemptions, allowing them to bypass standard compliance requirements:
- Show/display: Vehicles of historical or technological significance for limited use only.
- Racing vehicles: Exclusively for competition use and not for public roads.
- Temporary imports: Non-residents can import vehicles for up to one year.
B. Common Issues
Many people encounter challenges with financing and technical modifications when they import car from Canada to USA. These issues require careful planning to avoid unexpected delays or costs.
Financing Restrictions
Transferring or maintaining financing across Canada to US border can be complex due to restrictions on Canadian loans.
- Canadian lien limitations: Most Canadian lenders will not permit the permanent export of a financed vehicle.
- Cross-border financing challenges: Transferring loans across borders is often not possible.
- Payment requirements: You may need to pay off the Canadian loan before importing the vehicle.
Technical Modifications
US regulations require that vehicles meet specific standards for road safety and emissions. Non-compliant vehicles will need technical modifications:
- Speedometer/odometer conversion: Convert kilometers to miles or replace the device entirely.
- Lighting requirements: Update daytime running lights and signal light configurations.
- Emissions system modifications: Adjust catalytic converters or oxygen sensors to meet US standards.
Best Practices When You Import Car From Canada To US
Many importers face similar challenges and make similar mistakes. Learning from these can help you avoid costly delays and complications.
Plan Your Timeline Carefully
Plan your timeline carefully to avoid delays. Here’s what to expect:
- Documentation preparation (2-4 weeks): Allow time to gather manufacturer letters, customs forms, and other paperwork.
- Border crossing (1-3 hours): Account for extended time during secondary inspections.
- Registration process (1-2 days): Some US states require in-person appointments, so schedule ahead.
- Total process (3-6 weeks): Include potential delays in your planning to stay on track.
Benefit from Government Resources
Having the right resources and contacts can simplify the car import process. Use the following tools and information to stay informed:
Key Contacts
- CBP Office contacts: Keep the contact details for your port of entry handy for questions or issues.
- EPA importation hotline: Call (734) 214-4100 for guidance on emissions compliance.
- DOT information line: Dial (202) 366-5291 for queries about safety standards from the Office of Vehicle Safety Compliance—Import & Certification Division.
- State DMV offices: Get detailed information on local registration procedures and requirements from the relevant state’s DMV.
- Registered Importers: Check the NHTSA list for approved RIs to handle vehicle modifications.
Successful importers always double-check these resources before starting their journey. Make sure to bookmark relevant websites for quick access and sign up for email updates.
Canadian Car Shipping Can Help You Permanently Import Your Vehicle to US:
While importing car from Canada to US involves several steps, Canadian Car Shipping can significantly streamline the experience. Our experts handle the complete physical transportation of your vehicle from anywhere in Canada to wherever you want in the US. You can use our free Canada to USA car transport quote calculator to get no-obligation quotes, or you can call us at (800) 381-6907 and get free quotes.