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how to sell a US purchased car in canada

Printed From: Canada Immigration and Visa Discussion Forum
Category: Canada Visa / Temporary Entry Topics
Forum Name: Work Visa
Forum Description:
URL: https://secure.immigration.ca/forum/forum_posts.asp?TID=14490
Printed Date: 01 Jul 2024 at 8:53am


Topic: how to sell a US purchased car in canada
Posted By: lilyb06
Subject: how to sell a US purchased car in canada
Date Posted: 10 Nov 2013 at 10:50am

Can I sell U.S. purchased car in Canada if I have a valid work permit to be in Canada?

I will be in Canada for minimum 1 year with a valid work permit. In case if I cannot come back to Canada and would like to sell my car in Canda, what would be options to sell the car and process I have to go through?


Thanks,

Lily




Replies:
Posted By: pmm
Date Posted: 10 Nov 2013 at 1:03pm
Hi


Originally posted by lilyb06 lilyb06 wrote:

<h1 id="yui_3_9_1_8_1384098449758_520" ="subject">Can I sell U.S. purchased car in Canada if I have a valid work permit to be in Canada? </h1>

I will be in Canada for minimum 1 year with a valid work permit. In case if I cannot come back to Canada and would
like to sell my car in Canda, what would be options to sell the car and process I have to go through?

Thanks,

Lily





Basically you can't. It has to be exported back to the US.

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PMM


Posted By: dpenabill
Date Posted: 11 Nov 2013 at 1:27am

I am not familiar with the particulars of temporary importation of vehicles attendant temporary status in Canada, such as status pursuant to a work permit, although I know that the vehicle may be imported temporarily without going through the formalities imposed by the Registrar of Imported Vehicles process if an individual is temporarily in Canada pursuant to a work permit for less than 36 months.

But the vehicle may also be imported permanently, and I don't think foreign temporary workers are prohibited from doing this, subject, of course, to the formal requirements and restrictions for importing vehicles, as well as the applicable tax consequences. Additionally, there are reporting requirements (which are in turn part of the RIV requirements) for exporting the vehicle from the U.S. (This is mostly an anti-theft requirement.)

If the vehicle is imported pursuant to the formalities administered by the Registrar of Imported Vehicles, it can be sold in Canada, subject to certain tax consequences (and perhaps some time limitations -- been a little while since I visited the particular formalities involved).

Among sites to consult regarding importation of a vehicle into Canada, see the http://www.riv.ca/importingavehicle.aspx - RIV (Registrar of Imported Vehicles) site , and the http://www.cbsa-asfc.gc.ca/publications/pub/bsf5048-eng.html - CBSA "Importing a Vehicle Into Canada site.

Note too, a purchaser in Canada can also go through the formalities of importing a qualified vehicle (in compliance with RIV of course, and again subject to applicable tax consequences). Obviously this would reduce the amount the seller could obtain for the vehicle. It would be comparable to any Canadian purchasing a used vehicle in the U.S. and importing it into Canada . . . thus the vehicle probably would have to be physically taken to a POE, properly exported from the U.S. and then brought into Canada per the RIV process.





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Bureaucracy is what bureaucracy does, or When in doubt, follow the instructions. Otherwise, follow the instructions.



BTW: Not an expert, not a Can. lawyer, never worked in immigration


Posted By: pmm
Date Posted: 11 Nov 2013 at 2:08am
Hi


Originally posted by dpenabill dpenabill wrote:


I am not familiar with the particulars of temporary importation of vehicles attendant temporary status in Canada, such as status pursuant to a work permit, although I know that the vehicle may be imported temporarily without going through the formalities imposed by the Registrar of Imported Vehicles process if an individual is temporarily in Canada pursuant to a work permit for less than 36 months.

But the vehicle may also be imported permanently, and I don't think foreign temporary workers are prohibited from doing this, subject, of course, to the formal requirements and restrictions for importing vehicles, as well as the applicable tax consequences. Additionally, there are reporting requirements (which are in turn part of the RIV requirements) for exporting the vehicle from the U.S. (This is mostly an anti-theft requirement.)

If the vehicle is imported pursuant to the formalities administered by the Registrar of Imported Vehicles, it can be sold in Canada, subject to certain tax consequences (and perhaps some time limitations -- been a little while since I visited the particular formalities involved).

Among sites to consult regarding importation of a vehicle into Canada, see the http://www.riv.ca/importingavehicle.aspx - RIV (Registrar of Imported Vehicles) site , and the http://www.cbsa-asfc.gc.ca/publications/pub/bsf5048-eng.html - CBSA "Importing a Vehicle Into Canada site.

Note too, a purchaser in Canada can also go through the formalities of importing a qualified vehicle (in compliance with RIV of course, and again subject to applicable tax consequences). Obviously this would reduce the amount the seller could obtain for the vehicle. It would be comparable to any Canadian purchasing a used vehicle in the U.S. and importing it into Canada . . . thus the vehicle probably would have to be physically taken to a POE, properly exported from the U.S. and then brought into Canada per the RIV process.





Note:
Vehicles imported temporarily under one of these conditions cannot be sold or otherwise disposed of while in Canada, and it cannot remain in Canada longer than the time constraints listed on the person’s work permit, student visa, or other customs or immigration document. Once these time limits have been exceeded, the vehicle no longer qualifi es for temporary entry and must be exported.

As the OP is not a settler, can't use the duty free provisions IF He intends to export the vehicle from the US and then import it into Canada, s/he will be subject to duties, (probably 0) taxes, green levy , depending on the province HST/PST.

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PMM


Posted By: dpenabill
Date Posted: 11 Nov 2013 at 11:15am

Yes, that is why I made reference multiple times to the fact that there are tax consequences. While the tax consequences (federal duty and provincial taxes, and other fees) can be substantial, the difference in sales price, however, can also be significant enough to make it worthwhile. (I know several people who buy their cars in the states and import them, precisely because despite the tax consequences the net cost is still substantially less for certain vehicles.)

Bottom-line, still, the answer to the OP's questions (can I sell my vehicle in Canada? and if so, what process? do I need to go through) is that yes, an American vehicle can be sold in Canada if the vehicle is properly imported, and to learn about properly importing the vehicle, again see the http://www.riv.ca/importingavehicle.aspx - RIV (Registrar of Imported Vehicles) site , and the http://www.cbsa-asfc.gc.ca/publications/pub/bsf5048-eng.html - CBSA "Importing a Vehicle Into Canada site .


Originally posted by PMM PMM wrote:

As the OP is not a settler, can't use the duty free provisions IF He intends to export the vehicle from the US and then import it into Canada, s/he will be subject to duties, (probably 0) taxes, green levy , depending on the province HST/PST.


Note, even a settler cannot import vehicles entirely without tax consequences. While an arriving settler may import a vehicle attendant actually settling in Canada and duty and other taxes are waived, subject to the applicable process and its conditions (which may include things like modifications to make the vehicle comport with Canadian regulations, restrictions distinguishing between an owned vehicle versus a newly purchased one, among other restrictions), there is a time limitation restricting when that vehicle may be sold in Canada (otherwise various tax consequences may apply).

And, again, even if the OP does not initially import the vehicle through the RIV process (but rather temporarily imports it as allowed for those entering Canada with temporary status), the individual can offer the vehicle for sale in Canada so long as there is no misrepresentation as to the need to import it and the purchaser goes through the process to properly import the vehicle.



But in terms of the OP's questions, to be clear:

-- can I sell my vehicle in Canada?

The answer is yes.

-- what is the process?

The answer is that you must first properly import the vehicle (which includes properly exporting the vehicle from the U.S.), and to learn about doing that (including information as to costs involved) see the http://www.riv.ca/importingavehicle.aspx - RIV (Registrar of Imported Vehicles) site , and the http://www.cbsa-asfc.gc.ca/publications/pub/bsf5048-eng.html - CBSA "Importing a Vehicle Into Canada site .

Or the prospective purchaser in Canada must go through the process of exporting and importing the vehicle.

And, no, it is not free.





-------------
Bureaucracy is what bureaucracy does, or When in doubt, follow the instructions. Otherwise, follow the instructions.



BTW: Not an expert, not a Can. lawyer, never worked in immigration



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