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Thread: Question on Country of Origin for Duty Crossing Border

  1. #1
    Join Date
    May 2007
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    Victoria, BC
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    Nissan Skyline

    Question on Country of Origin for Duty Crossing Border

    I may not get a response here, but I figure it's worth a shot.

    Before you tell me to search, I've done all my homework, and Im putting together all my figures, but there some information missing that I can't seem to find.

    Im looking at a 1999 323CI from the states to bring over to Canada, and Im curious about the "manufacturer origin". Now, according to CBSA, you don't pay duty on a vehicle that was manfactured in United States, Canada or Mexico for the North American market.. Now I know companies like Toyota, Honda, Nissan etc all have US based plants where they assemble vehicles for sale in North America(some parts are locally made, some are from overseas). IE while it is a "japanese car" some are assembled in the United States (atleast a great percentage of the car), ie making it duty free (thanks nafta)

    Now does BMW have US based plants and run a similar operation? IE would the vehicle still be assesed duty? Or is everything made and assembled in germany, then the cars shipped via RORO to North America. I have read that others were assessed duty on their vehicles (6.1%) but it only seems to have been on earlier vehicles that I've found so far (ie e30s). Perhaps back then these plants had not been established, ie why there were assesed duty.

    Now if someone is REALLY good, maybe you could answer this for me as well. If said vehicle is to be assessed for duty, what kind of rate can I expect? I've searched ALL over cbsa's site for foreign exchange rates for german vehicles (duty rates on vehicles are differ for county of origin/manufaturing). So curious if anyone knows where I could get this? CBSA is closed atm, so if no one knows hthis one, I'll call them tommorow and find out the exact rate. I've read 6.1%, but things could have changed.

    Thanks in advance.
    Last edited by mcnab; 06-12-2007 at 03:30 AM.

  2. #2
    Join Date
    Oct 2006
    Location
    Victoria, BC
    Posts
    355
    My Cars
    1999 M3 Evolution
    Quote Originally Posted by mcnab View Post
    I may not get a response here, but I figure it's worth a shot.

    Before you tell me to search, I've done all my homework, and Im putting together all my figures, but there some information missing that I can't seem to find.

    Im looking at a 1999 323CI from the states to bring over to Canada, and Im curious about the "manufacturer origin". Now, according to CBSA, you don't pay duty on a vehicle that was manfactured in United States, Canada or Mexico for the North American market.. Now I know companies like Toyota, Honda, Nissan etc all have US based plants where they assemble vehicles for sale in North America(some parts are locally made, some are from overseas). IE while it is a "japanese car" some are assembled in the United States (atleast a great percentage of the car), ie making it duty free (thanks nafta)

    Now does BMW have US based plants and run a similar operation? IE would the vehicle still be assesed duty? Or is everything made and assembled in germany, then the cars shipped via RORO to North America. I have read that others were assessed duty on their vehicles (6.1%) but it only seems to have been on earlier vehicles that I've found so far (ie e30s). Perhaps back then these plants had not been established, ie why there were assesed duty.

    Now if someone is REALLY good, maybe you could answer this for me as well. If said vehicle is to be assessed for duty, what kind of rate can I expect? I've searched ALL over cbsa's site for foreign exchange rates for german vehicles (duty rates on vehicles are differ for county of origin/manufaturing). So curious if anyone knows where I could get this? CBSA is closed atm, so if no one knows hthis one, I'll call them tommorow and find out the exact rate. I've read 6.1%, but things could have changed.

    Thanks in advance.

    I am pretty sure I paid 6% duty when I imported my M3.

  3. #3
    Join Date
    May 2007
    Location
    Victoria, BC
    Posts
    5
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    Nissan Skyline
    So to confirm. I will likely pay 6.1% Duty on the vehicle. I talked to CBSA, and if the greater VALUE of the vehicle was manufactured in the US (ie if 51% of the value of the vehicle was manufacured in the states) then it is duty free. You can check by the compliance label on the drivers side door jam. I asked the owner to send a pic of this so I could confirm, but she said that she couldn't find this label :S Oh well, Im likely going down this weekend to check it out, and I'll find it when I look at it.

    Lastly, for anyone who has already done a younger than 15 year old vehicle, to register with the RIV program, you need a Recall Clearance letter from as they put it "The OEM". I could get one from an American BMW dealership, but this would be a pain to do while down there. For those that obtained recall letters, where did you obtain one from? BMW of North America? or your local BMW dealership?

  4. #4
    Join Date
    May 2007
    Location
    Victoria, BC
    Posts
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    Nissan Skyline
    Update for those that are curious for the future....Apparently, as of a week ago, you have to get a local dealership in Canada to produce these Recall Clearance Letters, and get this...They want $500 to produce a piece of paper that says your vehicle doesn't have any recalls...

    For those that have taken a vehicle in before, did you have to pay for your recall clearance letter? OR is this "fee" simply a new thing
    Last edited by mcnab; 06-12-2007 at 08:49 PM.

  5. #5
    Join Date
    Nov 2003
    Location
    Burlington, ON
    Posts
    70
    My Cars
    Avus Blue 328is, '95 M3

    Recall letter - from BMW Canada

    I called them up, spoke to someone in Customer Relations, and she faxed the letter the next day - gratis.

    Best of luck with your import. You probably know more than the people at the border. They told me that I'd have to take the car back to Nevada to get a salvage title because a '95 M3 was "inadmissable". I had to explain the difference between inadmissable and admissable with changes.

  6. #6
    Join Date
    Mar 2006
    Location
    Toronto, Canada
    Posts
    63
    My Cars
    740iL, ML320, '89 Mustang 5.0 Cobra GT vert
    Quote Originally Posted by Spin2Win View Post
    ....You probably know more than the people at the border.....
    Gee, you mean to tell me that the 6 weeks training they get at Border Agent Training Camp might not be enough? A fairly recent Canadian government inquiry regarding border security concluded that the agents (and indeed the entire agency) are more concerned about collecting a few dollars taxes on the 3 new golf shirts you bought during a day trip than they are about anything else. Makes me feel so safe.
    Of them all, this was my favorite.

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