Your guide to importing a car from China to Canada

Importing vehicles sold in countries besides Mexico and the United States isn’t permitted in Canada —unless it meets the requirements of the Motor Vehicle Safety Act. Even then, the process of registration can be a difficult feat. We’ll be looking at whether it’s possible to import cars from China, how to do so, the conditions and costs, and the benefits of using Wise to save on cross-currency payments.

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Is it possible to import cars from China to Canada? What are the conditions for importing a car from China to Canada? Cost of importing a car from China to Canada Save money on cross-currency payments with Wise Benefits of Wise for importing cars from China How to make payments with Wise How to import a car from China to Canada Documents required Before your car arrives in Canada Procedure for your car’s arrival in Canada After your car’s arrival in Canada

Is it possible to import cars from China to Canada?

Unfortunately, most China-made cars don’t meet Canadian standards, which means it may be difficult to import a car and get it onto the road. If it is deemed inadmissible at the border, the vehicle will be detained and denied entry, with the importer responsible for all fees.

There are, however, special circumstances listed by Transport Canada that could make this import dream possible.

What are the conditions for importing a car from China to Canada?

If the car you’re looking to import meets these conditions, there’s a chance that you’ll be able to import and drive it on Canadian soil:¹

• The vehicle is 15 years old or older
• Belongs to a regulated vehicle class under the Motor Vehicle Safety Act
• Meets all Canadian standards and was purchased new
• Is a Canadian-specification vehicle owned in Canada but was imported into China

Cost of importing a car from China to Canada

Other than the effort required to make sure your vehicle is fully admissible to Canada, there are also the costs of import to take stock of. Here’s a breakdown of the costs at each leg of the journey:

Leg of journey	Costs2
Before arrival	Brokerage fees: ~$100 on average Excess weight tax: For vehicles weighing over 4,425 lbs Air conditioning tax: $100 Import duties: 6.1% of the bill of sale Excise tax on fuel-inefficient vehicles: $0 — $4,000
On arrival	Excise taxes or duties assessed by CBSA at the border
Post-arrival	Registrar of Imported Vehicle fee: $325 + GST + HST/QST3

Save money on cross-currency payments with Wise

The costs of importing a car aren’t cheap, which is why it’s beneficial to find ways to cut down on costs wherever possible. Wise is a great solution for cross-border payments, providing a multi-currency account that lets you hold, manage, and receive money in 40+ currencies and send money to 160 countries.

Not only does Wise let you seamlessly manage your finances online, but it also offers:

• Mid-market exchange rate: The fairest rate on the market (the one you often see on Google), so you get more out of your hard-earned money.
• Low transfer fees, starting at 0.33%⁴: Low and transparent fees^* that you’ll get to see before you hit the send button.
• No monthly/annual fees: Wise works on a pay-as-you-go fee structure, with no recurring fees ever.

How to make international payments with Wise

Unlike the hassle of sending money through banks, Wise makes the process much more seamless with a 5-step procedure:

1. Select “Send” from the home screen
2. Choose whether you want to send your transfer using money in your Wise balance or from an account outside of Wise
3. Specify how much you wish to send and in which currency, and either schedule the transfer or choose to send it now
4. Add a recipient or choose an existing one from your list.
5. Review the payment options, including their fees and duration of transfer

How to import a car from China to Canada

If you’re gotten confirmation that you’re eligible to import your car from China to Canada, you should make sure your documents and plans are in order before starting the process.

Documents required

Having the required documents is critical, as it can make the difference between getting denied at the border and your car making it into the country. Make sure you have the following documents and double-check with legal counsel and other professionals that this list is comprehensive, as requirements can change over time.⁵

• Bill of lading (for import, release, and tax purposes)
• Tax ID number in Canada
• Car importer registration
• Vehicle customers value declaration
• Packing list
• Commercial invoice
• Certificate of value and origin to show the car is brand new
• Power of attorney

Before your car arrives in Canada

Before your car starts making its way to Canada, you’ll need to truly ensure that your vehicle complies with Canada’s strict import regulations, as you’ll be shipping from outside Mexico and the United States. A good place to look or check in with is the Registrar of Imported Vehicles (RIV). You’ll also need to compile all your documents, such as the ones listed above, and then arrange for the shipping to happen. It can also be useful at this stage to get an idea of how much you’ll have to pay in costs.

Procedure for your car’s arrival in Canada

When your car finally arrives at a Canadian port, customs will inspect the car and make sure you have all the required documents. It’s also here where you’ll have to pay taxes, import duties, and any other applicable fees. Without the payment ready or the documentation, you could be subject to delays and even cause your car to return to China.

After your car’s arrival in Canada

Once your vehicle is cleared at customs, you’ll need to take measures before driving it legally on the road. The car will need to be registered with your provincial or territorial licensing body and get the right insurance. At the RIV, you’ll have to present documents like the bill of sale, proof of insurance, and other items before it can be officially registered.

Final thoughts on importing a car from China to Canada

Nothing about importing a car from China to Canada is easy, especially considering that Canada has strict rules about international car imports. The good news is, Wise makes it easier to tackle the financial part of the equation with an effective multi-currency account that makes use of the mid-market rate and low and transparent fees.

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Sources:

1 - Importing a vehicle from countries other than the United States and Mexico
2 - Current Rates of Excise Taxes - Canada.ca
3 - Registrar of Imported Vehicles - Payment and Fees
4 - Wise Fees & Pricing: Only Pay for What You Use
5 - BR Logistics
Sources verified on 18 September 2024