Do I Need to Pay Import Duties When Moving to Canada from the US?

When considering a move from the United States to Canada, the process of importing a personal vehicle can be complex due to various regulations and fees. This article aims to provide clarity on the import duties applicable when moving from the US to Canada and highlight the specific scenarios in which you might not need to pay these fees.

Understanding Import Duties on Personal Vehicles

When importing a vehicle from the US to Canada, you might be required to pay import duties depending on several factors. For instance, if the car is assembled in Canada, the US or Mexico, you are subject to a 5% Goods and Services Tax (GST) plus the provincial tax rate. In contrast, if the car is imported into the United States, additional import duties might apply, such as a 6% tax on a LEXUS vehicle made in Japan.

According to the Government of Canada website, there are numerous fees and requirements for importing vehicles into Canada. It is essential to check the specific details for your move to ensure compliance with all regulations.

Import Duties and Your Residency Status

The import duties and requirements for your vehicle will vary based on your residency status. For example:

If you are a Canadian returning from the US: You will face a significant amount of paperwork, duties, and taxes. If you are a new immigrant to Canada: You can import your vehicle duty and tax-free, provided it meets Canada's environmental and safety standards. Additionally, you must have owned the vehicle for at least six months to be considered a personal effect. Purchasing new items and claiming them as personal goods is not allowed.

Special Tariff Codes for Imports

For specific tariff codes related to imports from the US to Canada, Canada has a special tariff item:

Tariff Item No. 9807.00.00: This code applies to personal effects being imported by new residents of Canada. Vehicles imported under this tariff code are exempt from import duties, provided they meet the aforementioned requirements.

Conclusion

The process of moving to Canada from the US and importing your personal vehicle can be intricate. It is crucial to understand your residency status and the specific rules regarding import duties. By familiarizing yourself with these guidelines, you can navigate the process more smoothly and potentially save on fees during your move.

For detailed information, please refer to the Government of Canada website. Ensure you have all the necessary documentation and are aware of the various taxes and fees to avoid any delays or complications in your move.