Importation of Used or Second-hand Motor Vehicles
Memorandum D9-1-11

Ottawa, August 25, 2016

ISSN 2369-2391

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In Brief

This memorandum has been updated to:

  • (a) Correct the date noted in paragraph 3(j) from 2011 to 2001;
  • (b) Amend paragraph (4) from “comply with the Canada Motor Vehicle Safety Standards” to “ comply with prescribed import requirements”;
  • (c) Remove an outdated statement concerning Transport Canada’s policy with regard to vehicles purchased outside of Canada; and,
  • (d) Update Transport Canada office coordinates.

This memorandum provides information regarding exemptions to the prohibitions of tariff item 9897.00.00 as it relates to the importation of used or second-hand motor vehicles manufactured prior to the calendar year in which importation into Canada is sought to be made, but that does not exceed 15 years in age.

Exemption from the import restriction that relates to tariff item 9897.00.00 does not exempt a vehicle from other import restrictions that may apply. For example, Transport Canada and Environment Canada have vehicle standards and emissions requirements that must also be met (refer to Memorandum D19-12-1, Importation of Vehicles for further information about all aspect of vehicle admissibility). The onus rests with the importer to determine the overall compliance status of the vehicle prior to importing it.

Legislation


Guidelines and General Information

Tariff Item 9897.00.00

1. Tariff item 9897.00.00 of the Customs Tariff prohibits the importation of used and second-hand motor vehicles of all kinds, manufactured prior to the calendar year in which importation into Canada is sought to be made unless the vehicle is:

2. When in doubt as to the applicability of tariff item 9897.00.00, it is necessary, before release will be granted to check with the Border Information Service (BIS) providing full particulars concerning the vehicle, including an illustration (if available), and complete information as to its proposed usage immediately.

Exclusions From the Application of Tariff Item 9897.00.00

3. As per the Used or Second-hand Motor Vehicles Regulations, the following motor vehicles are excluded from the application of tariff item 9897.00.00:

Transport Canada and Vehicle Importation

4. The CBSA assists Transport Canada with the administration of the Motor Vehicle Safety Act and Motor Vehicle Safety Regulations, which requires imported vehicles to comply with prescribed import requirements.

5. There are also specific admissibility conditions and border processing requirements for vehicles which are deemed to be at a total loss due to collision, fire, flood accident or any other occurrence requiring repair for which the cost is deemed unreasonable and the vehicle is being imported for parts only.

6. For detailed information about all aspect of Transport Canada’s vehicle importation requirements, refer to Memorandum D19-12-1, Importation of Vehicles.

7. The onus rests with the purchaser/importer to confirm the overall compliance status of any vehicle prior to importing it into Canada. This also applies to vehicles imported to be dismantled for parts.

Environment Canada and Vehicle Importation

8. On-road vehicles may be subject to the On-Road Vehicle and Engine Emission Regulations under the Canadian Environmental Protection Act,1999, administered by Environment Canada. For further information contact Environment Canada (refer to Additional Information section).

9. Off-road vehicles may be subject to the Marine Spark-Ignition Engine, Vessel and Off-Road Recreational Vehicle Emission Regulations under the Canadian Environmental Protection Act, 1999, administered by Environment Canada. For further information contact Environment Canada (refer to Additional Information section).

Tariff Determination and Duties and Taxes

10. Used or second-hand motor vehicles are subject to the payment of applicable customs duty, the goods and services tax, and other taxes imposed under the Excise Tax Act.

11. The rate of duty applicable to used motor vehicles imported from the US will depend upon the origin of the vehicle. Vehicles of US origin will be subject to the US tariff rate. Vehicles which originated in other countries and which are not entitled to the benefit of the US tariff rate will be subject to the Most-Favoured-Nation Tariff rate when imported from the US.

12. All damaged used and second-hand motor vehicles, which are imported for parts, are to be classified under tariff item  8708.99.99.19 for the vehicles of heading 87.03, and 8708.99.99.99 for other vehicles as parts and accessories of a motor vehicle.

13. Motor vehicles imported for scrap metal (not vehicle parts), are to be classified under tariff item 7204.49.11 as waste and scrap iron or steel. Prior to importation, they must be rendered unusable as either a vehicle or parts by one of five processes outlined in the Explanatory Notes to the Harmonized Commodity Description and Coding System for heading 72.04.

Additional Information

14. For additional information, on all aspects of Transport Canada’s vehicle importation requirements, importers can contact:

Motor Vehicle Safety Directorate
Transport Canada
Place de Ville, Tower C
330 Sparks Street
Ottawa, ON K1A 0N5

Telephone: 1-800-333-0371 (toll-free in Canada and the United States) or 613-998-8616
Fax: 613-998-8541
Email: mvs-sa@tc.gc.ca
Website: www.tc.gc.ca

15. For additional information on Environment Canada’s importation requirements, importers can contact:

Environment Canada
Inquiry Centre
10 Wellington, 23rd Floor
Gatineau, QC  K1A 0H3

Telephone: 819-997-2800 (toll free in Canada only) 1-800-668-6767
Facsimile: 819-994-1412
Teletypewriter: 819-994-0736
Email: envirinfo@ec.gc.ca

16. For more information, within Canada you may access the CBSA’s Border Information Service (BIS) free of charge by calling 1-800-461-9999. From outside of Canada, you can access BIS by calling 204-983-3500 or 506-636-5064 (long distance charges will apply). TTY is also available within Canada: 1-866-335-3237. To speak directly to an agent, please call during regular business hours from Monday to Friday (except holidays), 8:00 to 16:00 local time.

References

Issuing office:
Commercial Programs Policy and Management Division
Commercial Programs Directorate
Programs Branch
Headquarters file:
 
Legislative references:
Other references:
D19-12-1
Superseded memorandum D:
D9-1-11 dated June 14, 2016
Date modified: