If you’re interested in importing vehicles into Canada, careful planning and research are essential. From regulatory requirements and managing documents to shipping logistics and costs, every step plays a role in a successful import. In this blog, we explain the process and highlight efficient ways to handle international payments, so that you can move through each stage with maximum confidence.
Although this guide covers the common steps and approximate costs involved in importing vehicles to Canada, for precise requirements, we recommend consulting Canada’s official sources. Costs and procedures vary depending on the country and vehicle - and are subject to change. This blog is simply a reference point and not official guidance.
Step 1: Check vehicle eligibility
It’s important to note that not all cars are permitted into Canada. Before you begin, consult Transport Canada’s List of Eligible Vehicles and the Registrar of Imported Vehicles (RIV) (for U.S. imports). Checking eligibility early can save time and money. Please note, only zero-emission vehicles are currently accepted by Canada and it is a criminal offence to import a vehicle into Canada that does not meet the requirements of the Motor Vehicle Safety Act (MVSA). Even permitted vehicles may require modifications to meet Canadian safety and emissions standards.
Another important factor to consider is that most vehicles sold in countries other than the U.S. and Mexico cannot be imported into Canada, except in certain circumstances. For instance, you can import a vehicle that is 15 years or older, provided it is not a bus and is regulated under MVSA. If you do attempt to import an invalid vehicle, it will be detained and you will have to pay for disposal. For more information on special circumstances, we recommend visiting this official government resource.
It's also important to avoid importing vehicles with problematic histories or failed safety inspections, as these may be denied entry unless properly certified. We strongly urge you to consult Canada’s official car eligibility list before proceeding.
Step 2: Gather documentation
Once you’ve established if the car in question is eligible for import into Canada, you’ll need to collect all the relevant paperwork. This is an incredibly important step, as missed or incomplete documentation can delay customs clearance or even prevent the vehicle from entering Canada entirely.
You’ll need documents such as the bill of sale, original certificate of title (to show proof of ownership), the last copy of registration, USMCA/CUSMA certificate of origin and the Certified Weight Ticket, if applicable. If you’re importing temporarily, you may also need the Carnet de Passage. If you’re importing from the U.S., you must also provide a Recall Clearance Letter - an official document confirming that all associated recalls have been resolved.
When crossing the Canadian border, you’ll need to complete Form 1 from the Canada Border Services Agency (CBSA), which details the importer's and vehicle’s information. You will need to print four copies and take them with you to import. Additionally, depending on the country of export, you may be required to file an export declaration before the vehicle leaves its origin country. Ensuring that all these documents are prepared in advance will help avoid costly delays and make the import process more efficient.
Step 3: Duties, taxes and customs fees
Bringing a vehicle into Canada means you’ll need to account for a range of import-related costs at the border. These typically include import duties, which may depend on the vehicle’s country of origin. The Registrar of Imported Vehicles (RIV) Import fee applies to all vehicles less than 15 years of age and buses manufactured since 1971. The fee is non-refundable and is payable online, via the RIV website. While subject to change, the current fee is $325 per vehicle.
Other potential fees include the Goods and Services Tax (GST) with a standard rate of 5% or the Harmonized Sales Tax (HST), which varies by province, as well as the Air Conditioning Tax (if applicable) and the Green Levy Tax for fuel-inefficient vehicles. Vehicles will also require registration and provincial safety inspections, which also come with a fee (but more on these later). For a complete list of fees and costs, we recommend looking through the aforementioned RIV website. Alternatively, to simplify this process and avoid administrative errors, many importers choose to work with a licensed customs broker who calculates duties and taxes on their behalf, ensuring all fees are paid correctly and on time.
Step 4: Plan transport
Once your documentation is in order and the vehicle is cleared for import, the next step is to arrange transportation and storage. How the vehicle reaches Canada depends largely on its country of origin. If you're importing from the U.S., land transport by trailer or carrier is the most common and cost-effective method. For vehicles coming from overseas, such as Asia or Europe, you’ll likely use container or roll-on/roll-off sea freight, which requires coordination with a freight forwarder or shipping agent.
Regardless of the transportation method, it's important to factor in shipping costs, customs examinations, shipping insurance, port handling charges and terminal storage fees, which can add up quickly if there are any delays in pickup or customs clearance. The exact price of these will depend on your vehicle type and country of origin.
Step 5: Register the vehicle
Now that the vehicle is finally on Canadian soil, you’ll need to complete registration. It’s important to note that you cannot drive or resell the vehicle before this step is complete. This process varies slightly depending on the province, but generally includes a safety inspection, emissions test and vehicle registration application.
In some provinces, imported vehicles must pass an additional structural or compliance inspection before plates can be issued. You’ll need to provide key documents such as the bill of sale, proof of customs clearance (Form 1 or 2) and a valid ID. Once the vehicle passes all required checks, you can register it with the provincial licensing authority and receive plates and a registration certificate.
The registration process is also the time you’ll need to pay the Provincial Sales Tax (PST) or HST, depending on where the vehicle will be operated. It’s essential to familiarise yourself with local requirements in advance, as failing to meet provincial standards can also delay registration and/or result in additional fees.
Money management is key
When importing a vehicle, costs can easily add up, which is why shrewd money management is key to positive profit margins. In an industry where many costs are fixed or regulated, managing FX and transfer fees is one of the few areas where you can actively protect your profits and run a more efficient business.
Traditional banks may charge higher foreign exchange markups, wire fees and hidden costs that might seem small but can significantly add up across multiple transactions. For this reason, we recommend exploring your options to ensure that you’re using the correct payments solutions provider. Since car importers often deal with multiple currencies and overseas partners, having a reliable, transparent payment solution helps reduce errors and hassle.
Comparing FX and money transfer providers
When choosing a provider to handle international payments for vehicle imports, it's essential to consider costs, speed and compatibility. Here are some providers and their rates:
● Traditional banks: Banks such as the Royal Bank of Canada, Toronto-Dominion Bank and Scotiabank typically apply FX markups of around 2-4% and charge wire transfer fees between $25 and $50 per transaction. While they offer familiarity and reliability, their payment processing times range from one to five business days.
● Wise: Wise offers a transparent pricing model with FX markups starting at around 0.48% of the real mid-market rate. There are no hidden fees and receiving funds is generally free, making it a cost-effective option for many cross-border transactions. The transfer time is usually around one to two business days.
● OFX: OFX provides a middle ground, with FX markups ranging from 0.5% to 1.5% and no transfer fees (as long as a minimum threshold is reached). Like Wise, OFX typically processes payments within one to two business days.
● Western Union Business: Western Union Business applies an FX markup between 1-3%, with fees that vary by region and transaction type. Its transfer speeds range from same-day to two days.
Each option has its pros and cons, but if you're handling frequent, cross-border payments - especially for business purchases like used vehicle imports - minimising FX costs and opting for faster processing speeds is essential for your bottom line.
How MyGuava Business Can Help
Why MyGuava Business stands out
MyGuava Business offers a solution that balances cost, speed and reliability – perfect for car importers and auto businesses managing frequent international payments. Here's why others have chosen MyGuava Business for their overseas payments:
● Competitive FX rates: MyGuava Business offers a flat, transparent 1% FX markup
● Fast settlements: Most transfers are processed and settled the same day, helping avoid delays in logistics and supplier coordination
● Multi-currency support: Businesses can send, receive and hold funds in over 20 currencies, across 150+ countries
● Intuitive interface: MyGuava Business’s easy-to-use platform helps ensure headache-free international payments that can be completed effortlessly, in real time
MyGuava Business promises greater control, easy-to-use features and fair pricing – with no hidden fees or sneaky fine print. With MyGuava Business, you can enjoy reliable payments, lowered costs and excellent customer service, without any of the delays typically associated with traditional banking providers.
Final thoughts
While transporting cars into Canada may seem overwhelming, we hope this guide has given you the necessary insights and confidence to embark on your importation journey with greater peace of mind. Importing used vehicles to Canada can yield high returns if done effectively, which necessitates paying close attention to every requirement, as well as selecting a payment solution that facilitates increased profit retention.
Partnering with MyGuava Business for your international payment requirements allows you to better manage your business finances and focus on growth, instead of banking admin. Visit our website to compare features further, discover additional benefits and chat with the team to find out more about how we can help.
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