Michael

Do the Canadian authorities permit an immigrant to import a car into Canada if it was
purchased on loan and the immigrant therefore does not have the title documents
(which are held by the lending company) but does have the registration certificate
and all other required documents?

Thanks in advance.

Rich Wales

"Michael" wrote:

> Do the Canadian authorities permit an immigrant to import a car into Canada if
> it was purchased on loan and the immigrant therefore does not have the title
> documents (which are held by the lending company) but does have the
> registration certificate and all other required documents?

I'm not sure. However, you should consider at least a couple of issues.

First, if you are immigrating to Canada (to live there for the first time), you can
normally claim a "settlers' effects" exemption from taxes and customs duties on all
your possessions. However, a requirement for settlers' effects is that they must have
been in your ownership, possession, and use prior to importation. If you're still
paying off your car loan, you do not "own" the car -- and, accordingly, you would not
be able to claim it as settlers' effects.

Second, many (though not all) car loans have a provision in the fine print
prohibiting permanent exportation of the car from the US. In this case, you could not
bring the car to Canada with you without first paying off the loan in full. Check
with your lender.

Rich Wales [email protected] http://www.webcom.com/richw/
*NOTE: I've lived in both Canada and the US and have dual citizenship.
*DISCLAIMER: I am not a lawyer, professional immigration consultant,
or consular officer. My comments are for discussion purposes only and
are not intended to be relied upon as legal or professional advice.

Michael

Thanks.

Apart from the exemptions due under the "settlers' effects" rules, if the car is
being imported from the US, would it not be subject to NAFTA rules and therefore be
exempt from duties and (possibly) taxes?

Thanks in advance.

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Stephen C. Gallagher

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If the car were manufactured in the US, Canada, or Mexico, then yes, it may be exempt
from duties. The taxes that could be assessed would include GST and the excise tax on
vehicles with air conditioning. On top of this, PST might be due, although most
provinces exempt PST when a person registers his car there because he moves into the
province from somewhere else.

Stephen Gallagher

Michael

The link below appears to explicitly exclude motor vehicles that are leased but it
does not specifically mention vehicles that are purchased on loan. It would appear
that such vehicles are not excluded, since their owners do have the rights to "have
them as personal property and to exercise control over their use and disposition." Is
this a correct interpretation? Is there anyone who has actually been prohibited from
importing as "settler's effects" a vehicle that was purchased on loan? I ask because
I am actually on the point of arriving in Canada and I have a vehicle that I would
like to bring with me.

http://www.ccra-adrc.gc.ca/E/pub/cm/.../d2-2-1ed.html

Thanks in advance.

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Stephen C. Gallagher

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One of my neighbours works for the customs section of CCRA and he tells me that the
fact that a car is financed does not disqualify it from being imported under the
"ownership" requirement.

He says that what is important is that the importer's name is listed on the US title
certificate.

Stephen Gallagher

Michael

Thanks.

[usenetquote2]> > > Do the Canadian authorities permit an immigrant to import a car into Canada[/usenetquote2]
[usenetquote2]> > > if it was purchased on loan and the immigrant therefore does not have the[/usenetquote2]
[usenetquote2]> > > title documents (which are held by the lending company) but does have the[/usenetquote2]
[usenetquote2]> > > registration certificate and all other required documents?[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
[usenetquote2]> > I'm not sure. However, you should consider at least a couple of issues.[/usenetquote2]
[usenetquote2]> >[/usenetquote2]
[usenetquote2]> > First, if you are immigrating to Canada (to live there for the first time), you[/usenetquote2]
[usenetquote2]> > can normally claim a "settlers' effects" exemption from taxes and customs duties[/usenetquote2]
[usenetquote2]> > on all your possessions. However, a requirement for settlers' effects is that[/usenetquote2]
[usenetquote2]> > they must have been in your ownership, possession, and use prior to importation.[/usenetquote2]
[usenetquote2]> > If you're still paying off your car loan, you do not "own" the car -- and,[/usenetquote2]
[usenetquote2]> > accordingly, you would not be able to claim it as settlers' effects.[/usenetquote2]
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Michael

I would appreciate the benefit of anyone's opinion or experience on a related matter:

One of the options I am considering is leaving the car in the US for a few weeks
after landing (declaring it as goods to follow when landing). On establishing a bank
account in Canada, I would apply to the Canadian bank for an auto finance loan to
refinance the loan I currently have with a US based auto finance company and, if and
when that application is approved and the lien has been transferred to the Canadian
bank, I would bring the car into Canada.

Would anyone be able to point out any practical difficulties with this course of
action? In particular, how difficult would it be for me (with a clean US credit
history) to refinance with a Canadian bank an auto loan that originated outside
Canada? And are there likely to be any problems with Canadian Customs? Would I stand
a better chance with some other auto finance provider?

Thanks in advance.

Michael

Stephen C. Gallagher

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that
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finance
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You could encounter several problems. First, many but not all Canadian banks and
finance agencies will not consider your US credit history. They will check your
Canadian credit history, and see that you do not have one.

Second, the bank may be hesitant to finance a car that has not yet been formally
imported to Canada, since they have no way of knowing if the car will actually be
allowed to stay in the country.

Customs will not care, one way or the other, if the car is financed.

Stephen Gallagher

Stuart Brook

Again, check out the www.riv.ca site.

A car can be imported as a personal posession up to a value of $10,000
CDN. Over that, duties and taxes are payable. The car must have clear title
(although that does seem to be ignored a lot of the time ...)

Most important though is that you must declare the export to US Customs. When you do
that, you must provide them with the title document at least 72 hours prior to
exporting the vehicle. They will insist that you have clear title, or that you have
written authorization from a lien holder to export the vehicle.

Stuart

Stephen C. Gallagher wrote:

    >
[usenetquote2]>>I would appreciate the benefit of anyone's opinion or experience on a[/usenetquote2]
[usenetquote2]>>related matter:[/usenetquote2]
[usenetquote2]>>[/usenetquote2]
[usenetquote2]>>One of the options I am considering is leaving the car in the US for a few weeks[/usenetquote2]
[usenetquote2]>>after landing (declaring it as goods to follow when landing). On establishing a[/usenetquote2]
[usenetquote2]>>bank account in Canada, I would apply to the Canadian bank for an auto finance loan[/usenetquote2]
[usenetquote2]>>to refinance the loan I currently have with a US based auto finance company and, if[/usenetquote2]
[usenetquote2]>>and when that application is approved[/usenetquote2]
[usenetquote2]>>[/usenetquote2]
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[usenetquote2]>>the lien has been transferred to the Canadian bank, I would bring the car[/usenetquote2]
[usenetquote2]>>into Canada.[/usenetquote2]
[usenetquote2]>>[/usenetquote2]
[usenetquote2]>>Would anyone be able to point out any practical difficulties with this course of[/usenetquote2]
[usenetquote2]>>action? In particular, how difficult would it be for me (with a clean US credit[/usenetquote2]
[usenetquote2]>>history) to refinance with a Canadian bank an auto loan[/usenetquote2]
[usenetquote2]>>[/usenetquote2]
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[usenetquote2]>>originated outside Canada? And are there likely to be any problems with Canadian[/usenetquote2]
[usenetquote2]>>Customs? Would I stand a better chance with some other auto[/usenetquote2]
[usenetquote2]>>[/usenetquote2]
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[usenetquote2]>>provider?[/usenetquote2]
[usenetquote2]>>[/usenetquote2]
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