How do I Buy a Used Car in Canada & Transfer to the United States?
- 1). Source your used car through car websites, dealers, newspaper advertisements or private sellers. Make sure to get the registration documents and retain the bill of sale, because you will need these to import the car into the U.S. Shipping invoices are also necessary if the car is shipped to clear Customs. (See Reference 1)
- 2). Organize shipping if necessary. Cars can be shipped overland or by sea from Canada to the U.S. (see Reference 5) and a commercial customs broker can handle the paperwork for you. (See Reference 1) Otherwise, drive the car across the Canada/U.S border.
- 3). Fill in EPA Form 3520-1 at the time of importation which can be done at the border. A car which complies with U.S emissions standards has an English label in the engine compartment and this form verifies this. (See Reference 3)
- 4). Fill in a Department of Transport (DOT) HS-7 form. This verifies that the car meets DOT safety standards. You will know if your car meets these standards if it has a label near the driver's door. Most cars under 25 years old will meet DOT standards. (See Reference 2)
- 5). Pay 2.5% duty on the value of the car. U.S citizens returning from Canada can apply their $400 duty exemption towards this cost. Groups exempt from paying this duty are nonresidents importing the car concurrently with their arrival and military and civilian government contractors returning to the U.S after an extended tour abroad. Cars previously registered in the U.S can also be exempted from this duty. (See Reference 1)
