How to Export a Vehicle from Canada: A Complete Guide

Are you planning to export a vehicle from Canada to another country? If so, you need to know the rules and regulations that apply to this process. Exporting a vehicle from Canada is not as simple as driving it across the border. You have to follow certain steps and meet specific requirements to avoid any problems or penalties.

In this article, we will explain everything you need to know about exporting a vehicle from Canada, including:

The documents you need to prepare
The fees and taxes you have to pay
The inspections and certifications you have to obtain
The shipping options and costs you have to consider
The import regulations of the destination country you have to comply with

By following this guide, you will be able to export your vehicle from Canada smoothly and safely.

Documents You Need to Prepare

Before you can export your vehicle from Canada, you have to prepare some documents that prove your ownership and identity. These documents include:

The original Canadian registration certificate or title of the vehicle
A valid Canadian driver’s license or passport
A bill of sale or invoice that shows the purchase price and date of the vehicle
A letter of authorization from the lienholder or leasing company if the vehicle is financed or leased
A recall clearance letter from the manufacturer or dealer that confirms that the vehicle has no outstanding recalls

You have to submit these documents to the Canada Border Services Agency (CBSA) at least 72 hours before you intend to export your vehicle. You can do this online through the Electronic Export Reporting (EER) system or in person at a CBSA office. You will receive an export confirmation number that you have to present at the border when you export your vehicle.

Fees and Taxes You Have to Pay

When you export your vehicle from Canada, you have to pay some fees and taxes that depend on the value and type of your vehicle. These fees and taxes include:

The goods and services tax (GST) or harmonized sales tax (HST) that applies to your province or territory
The excise tax on air conditioners, fuel-inefficient vehicles, or green levy vehicles
The provincial sales tax (PST) or Quebec sales tax (QST) if applicable
The export fee of $16.00 CAD per vehicle

You have to pay these fees and taxes at the time of exportation. You can pay them online through the EER system or in person at a CBSA office. You will receive a receipt that you have to keep as proof of payment.

Inspections and Certifications You Have to Obtain

Before you can export your vehicle from Canada, you have to obtain some inspections and certifications that ensure your vehicle meets the safety and environmental standards of the destination country. These inspections and certifications include:

The Transport Canada Vehicle Import Form 1 (VIF 1) that certifies that your vehicle complies with the Canadian Motor Vehicle Safety Standards (CMVSS)
The U.S. Department of Transportation (DOT) Form HS-7 that certifies that your vehicle complies with the Federal Motor Vehicle Safety Standards (FMVSS) if you are exporting to the United States
The U.S. Environmental Protection Agency (EPA) Form 3520-1 that certifies that your vehicle complies with the Clean Air Act if you are exporting to the United States
The Certificate of Origin (COO) that certifies that your vehicle was manufactured in Canada or another eligible country under the free trade agreement with the destination country

You have to obtain these inspections and certifications from authorized agencies or organizations before you export your vehicle. You can find a list of these agencies or organizations on the Transport Canada website or the CBSA website. You have to present these inspections and certifications at the border when you export your vehicle.

Shipping Options and Costs You Have to Consider

When you export your vehicle from Canada, you have to consider some shipping options and costs that depend on the distance and mode of transportation. These shipping options and costs include:

The road transportation option that involves driving your vehicle across the border or hiring a carrier service
The rail transportation option that involves loading your vehicle onto a train or hiring a rail service
The sea transportation option that involves loading your vehicle onto a ship or hiring a shipping service
The air transportation option that involves loading your vehicle onto a plane or hiring an air service

You have to choose the shipping option that suits your budget, schedule, and preferences. You also have to factor in the insurance, customs, brokerage, and handling fees that may apply to your shipping option. You can compare different shipping options and costs on various websites or platforms online.

Import Regulations of the Destination Country You Have to Comply With

When you export your vehicle from Canada, you have to comply with some import regulations of the destination country that vary depending on the country’s laws and policies. These import regulations include:

The import duty or tariff that applies to your vehicle based on its value, origin, and classification
The import tax or levy that applies to your vehicle based on its engine size, fuel type, or emissions
The import license or permit that you need to obtain from the relevant authority or agency of the destination country
The import inspection or certification that you need to undergo from the competent authority or organization of the destination country
The import registration or title that you need to acquire from the appropriate department or office of the destination country

You have to research these import regulations before you export your vehicle from Canada. You can find information on these import regulations on the official website or portal of the destination country’s government or embassy. You have to follow these import regulations to avoid any fines, penalties, or delays.

Exporting a vehicle from Canada is a complex and costly process that requires careful planning and preparation. You have to prepare some documents, pay some fees and taxes, obtain some inspections and certifications, consider some shipping options and costs, and comply with some import regulations. By following this guide, you will be able to export your vehicle from Canada successfully and legally.

Exporting a Vehicle from Canada: A Statistical Overview

Canada is one of the world’s leading exporters of motor vehicles and related parts and components. In this blog post, we will provide some statistical insights into the trends and patterns of this industry, based on the latest available data from various sources.

Export Value and Volume

According to Statistics Canada, the value of Canadian motor vehicle and parts exports was around 56 billion U.S. dollars in 2020, down from 68 billion U.S. dollars in 2019. This decline was mainly due to the impact of the COVID-19 pandemic on the global demand and supply chains. However, exports are estimated to increase in 2021, as the industry is expected to recover from the crisis.

The volume of Canadian motor vehicle and parts exports also decreased in 2020, reaching 2.7 million units, compared to 3.1 million units in 2019. The majority of these exports were passenger cars, followed by trucks, buses, and special purpose vehicles.

Export Destinations

The United States is by far the largest destination for Canadian motor vehicle and parts exports, accounting for more than 90% of the total value in 2020. The U.S. market is also the main source of Canada’s trade surplus in this sector, as Canada imports less than it exports from its southern neighbor.

Other important destinations for Canadian motor vehicle and parts exports include Mexico, China, Germany, and Saudi Arabia. However, these markets represent a much smaller share of the total value, ranging from 1% to 3% each.

Export Opportunities

The Canadian automotive industry faces several challenges and opportunities in the global market. On one hand, it has to compete with other major exporters, such as Japan, Germany, China, and South Korea, as well as cope with changing consumer preferences, environmental regulations, and technological innovations. On the other hand, it can benefit from the existing free trade agreements with the U.S., Mexico, and the European Union, as well as explore new opportunities in emerging markets, such as India, Brazil, and Southeast Asia.

One of the most promising areas for Canadian motor vehicle and parts exports is the new energy vehicle (NEV) segment, which includes electric vehicles (EVs), hybrid electric vehicles (HEVs), plug-in hybrid electric vehicles (PHEVs), and fuel cell vehicles (FCVs). According to Statista, the sales of NEVs in Canada increased from 18,564 units in 2014 to 54,353 units in 2020, and are projected to reach 82,000 units in 2021. Canada also has a strong potential to export NEVs and related components, such as batteries, motors, and charging stations, to other countries that are promoting green transportation.

References:

https://www.gao.gov/assets/150/145479.pdf

https://web.archive.org/web/20150128132047/http://www.taranomco.com/wp-content/uploads/2013/11/315.pdf

http://www.tc.gc.ca/media/documents/roadsafety/vafus.pdf

Automotive statistics – Statistics Canada

Canadian motor vehicle exports – Statista

International trade statistics – Statistics Canada

https://www.cbp.gov/trade/basic-import-export/export-docs/motor-vehicle

https://www.epa.gov/importing-vehicles-and-engines

https://www.international.gc.ca/trade-commerce/trade-agreements-accords-commerciaux/agr-acc/index.aspx?lang=eng