Transporting Vehicles From Auctions in USA to Canada

Transporting Vehicles From Auctions

 

Transporting Vehicles From Auctions in USA to Canada

You can buy an auction vehicle, drive it home and keep it. That’s the good news. The bad news is that driving a car from the U.S. to Canada is not as simple as you might think. To import a non-Canadian vehicle into Canada, you must meet certain requirements set out by Transport Canada and your provincial licensing agency.  This includes meeting specific safety standards for that vehicle type (e.g., emission, bumper height, lighting/visual warning device standards). A secondary challenge involves meeting all of these regulations while also avoiding hefty taxes and expensive shipping costs at both ends. Below are five tips to help you transporting vehicles from auctions in USA to Canada successfully:

Before you buy a vehicle from USA auction

First, before you buy a vehicle from an auction in the United States, confirm that the vehicle is eligible for import to Canada. Transport Canada regulations are complex and subject to change. Many states have their own rules and regulations that may differ from those of Canada. If you transport a vehicle that’s not eligible for import, you may have to pay heavy fines. You can have the vehicle confiscated, or both. Transporting ineligible vehicles also jeopardizes your right to import any future vehicles. To determine if a specific vehicle makes the cut, visit Transport Canada’s website and enter the vehicle’s Vehicle Identification Number (VIN). You can also use a free mobile app like CanBorder. These tools will tell you if the vehicle conforms to Canadian standards and if it can be imported.

Determining vehicle eligibility for transport to Canada

The first step in importing a vehicle from the United States to Canada is to determine whether the vehicle you want to import meets the Canadian regulatory and safety standards. To do this, you can use a free online tool, like CanBorder. Check Transport Canada’s Motor Vehicle Importation Regulations for detailed information on the specific regulations that apply to the type of vehicle you own.

While similar, not all U.S.- and Canada-registered vehicles are identical. Therefore do not have to meet the same safety and regulatory requirements. For example, a vehicle with a gross weight of 8,800 pounds or less.  That is manufactured after model year 1967 is permitted to be imported into Canada without any special certification. However, if the vehicle is manufactured between 1968 and 1973 inclusive, it must have a Vehicle Identification Number (VIN). VIN is assigned by the National Highway Traffic Safety Administration (NHTSA).

Transporting your auction vehicle from USA to Canada

Keep in mind that the vehicle you transport from the U.S. must also meet Canadian safety standards and meet import requirements set out by Transport Canada. You will need to ensure that the vehicle meets Canadian standards.  Vehicle weight and dimensions, and that it conforms to Canadian braking, lighting, and exhaust standards. You will be required to provide the following documents when importing your vehicle from the United States to Canada. A completed Application for Transportation Declaration Proof of ownership (e.g., title, bill of sale).  If you are importing a vehicle that was purchased in the U.S., but is currently registered in Canada, you must provide a completed Out-of-District Declaration (form E19-RF) in addition to the above documentation.

Transporting Steps for Auction Vehicles From USA to Canada

The following are the steps to transport auction vehicles from the USA to Canada. Choosing a shipping company that has experience with vehicle transport. Is aware of the specific documentation required to import a vehicle into Canada.  Transporting the vehicle to a Canadian port, depending on the distance between the U.S. auction location and the port where the vehicle will be imported. Also the availability of a nearby port Transporting the vehicle from that port to its final destination in Canada. (If the vehicle is not delivered to you directly at the port, this step may involve paying for additional transport and customs broker fees). Paying applicable federal, provincial, and/or municipal taxes and duties.  Which may be due on imported vehicles that are valued above a certain threshold (see below for more information)

Tax Consequences of Transporting an Auction Vehicle from USA to Canada

Transporting auction vehicles from the U.S. is almost always a taxable transaction, regardless of the length of time the vehicle was owned and used in the U.S. Generally, imported vehicles are taxed at either a flat rate of 25% or at the applicable Canadian rate. It is based on the vehicle’s model year, manufacturer, and engine size. The applicable tax rate is determined by Transport Canada.  It is often calculated based on the vehicle’s suggested retail price (SRP).

Import duties and taxes on vehicles are assessed at the time of import. If you import your vehicle yourself, you will be required to provide the Canada Border Services Agency (CBSA) with an import declaration. As well as proof of ownership, vehicle identification, and a bill of lading or receipt for the shipping service that brought the vehicle to Canada. If you hire a customs broker, they will handle all of the necessary paperwork on your behalf. However, if you are not using a broker, you will be responsible for ensuring that all necessary taxes and duties are paid.

Bottom line

If you require help in transporting vehicles from auctions in USA to Canada choosing the right transport company is critical. Vehicle transport process can become very complicated if you don’t follow proper customs regulations. In addition, you will also have to consider the cost of the overall transport process.  This can be substantial if the vehicle must be transported by sea.

If you are planning to import vehicles to Canada as part of a business, you may be eligible for a reduced or waived tax rate. Depending on the type of vehicle, its engine size, and the length of time you have owned the vehicle.  Although the process of importing vehicles from the U.S. can be challenging. You can reduce the risk of complications and delays by hiring a customs broker. And choosing an experienced shipping company that is familiar with the Canadian vehicle import process. Contact us if you require help in your next transporting auction sale or visit us on Facebook.

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