The duties and taxes that you will have to pay when importing a vehicle into Canada from another country will depend on a few factors, such as the value of the vehicle and where it was manufactured.

Import Duty: If the vehicle was manufactured in the United States or Mexico, you will not have to pay any import duty, thanks to the North American Free Trade Agreement (NAFTA). If the vehicle was manufactured outside of the US or Mexico then you will have to pay an import duty of 6.1% of the vehicle’s value on the bill of sale.

Taxes: Just like you would have to pay taxes on a new vehicle if you bought it in Canada, you also have to pay GST and PST and/or HST on your imported vehicle as you’re bringing it across the border. The amount will vary depending on your province or territory.

Register of Imported Vehicle (RIV) fee: In addition to the duties and taxes, you will also have to pay a $195 Register of Imported Vehicles (RIV) fee. This applies to all vehicles imported into Canada regardless of place of origin.

Air conditioning tax: If the vehicle has air conditioning (which most do these days), you will also pay a $100 tax.

Excess weight tax: Vehicles weighing more than 2,007 kg (4,425 pounds) are subject to an additional tax.

Tax on fuel-inefficient vehicles: Vehicles that are classified as “gas guzzlers” by the Federal Government are subject to an excise tax of between $1,000 and $4,000 depending on the severity of the inefficiency. Note: this tax applies primarily to small passenger vehicles and does not include pickup trucks, ambulances, hearses, and vans that can carry 10 or more passengers.

Brokerage fees: Paying a customs broker like Clearit will help ensure that your car import goes smoothly at the border. A broker will take care of things like preparing the customs release, coordinating the border crossing, completing all required documents, and remitting all duties and taxes to Canada Customs. These fees vary. Clearit, for example, charges $389.99.

Despite all the various fees that you’ll need to pay, there are still some great reasons why it might make sense to import a car from the US or another country:

  • Lower prices: Cars might be cheaper to purchase from other countries due to the exchange rate and/or the fact that other countries have a larger market for vehicles.
  • Better selection: There are some vehicles that are not available in Canada but can be imported from other countries. These can include classic and vintage cars, certain luxury cars, and specialty vehicles.

To learn more about our car import service, GET IN TOUCH WITH A CUSTOMS BROKER HERE