Key Takeaways
- CBSA clearance and Transport Canada RIV compliance are separate steps; missing either one stops provincial registration.
- CUSMA-origin US vehicles clear duty-free; non-CUSMA vehicles face 6.1% MFN tariff plus 5% GST.
- High-value vehicle imports require an RPP bond before release; budget CAD 250 to 400 brokerage fee plus $195 RIV fee.
- Vehicles 15 years or older are exempt from federal safety inspection but still require RIV registration and full customs clearance.
What a Vehicle Import Broker Files for You
Importing a vehicle into Canada is a two-agency process. CBSA clears the import, Transport Canada (via the Registrar of Imported Vehicles) certifies the vehicle meets federal safety standards. A vehicle import broker handles the customs side: filing the Commercial Accounting Declaration (CAD), declaring origin and duty liability, posting financial security if needed, and ensuring CBSA Form 1 is properly completed at first point of entry.
Most private importers learn about RIV only after they've driven the vehicle to the border. The $195 RIV registration fee (plus GST/HST) is Transport Canada's charge for registering the vehicle and issuing an inspection form. That's separate from customs duty (if applicable) and separate from our brokerage fee. CBSA will not release a vehicle without proof of RIV payment or exemption documentation.
CUSMA Origin vs MFN Duty
Passenger vehicles imported from the US typically qualify for duty-free treatment under CUSMA if they meet North American origin rules. Vehicles manufactured in Mexico, the US, or Canada with sufficient regional value content clear at 0% duty. Vehicles manufactured outside the CUSMA zone face the Most-Favoured-Nation (MFN) tariff rate of 6.1% on the declared value.
HS classification for most passenger cars is 8703.23.90 (spark-ignition reciprocating piston engine, cylinder capacity exceeding 1500cc but not exceeding 3000cc) or one of the adjacent subheadings depending on engine displacement. Getting the six-digit HS code right matters. An incorrect classification can trigger an AMPS penalty (Administrative Monetary Penalty System) if CBSA decides the error was due to insufficient care. Level 1 AMPS contraventions for incorrect tariff classification start at $500 and scale with the duty differential.
RPP Bond and Financial Security
High-value vehicles imported on a release-prior-to-payment basis require a customs bond. If the declared value of the vehicle plus applicable duties and GST exceeds CBSA's minimum threshold (varies by import frequency and importer compliance history, but routinely $2,500 for one-time importers), the importer or broker must post financial security before CBSA releases the vehicle. We arrange RPP bonds as part of the import clearance service; the bond stays active until final payment is confirmed via the CARM Client Portal.
For clients importing multiple vehicles (dealers, auction buyers, leasing companies), an ongoing RPP bond is often more efficient than paying duties at the border on every unit. The bond amount is calculated as a multiple of estimated monthly duty and tax liability.
Non-Resident Importer Scenarios
If you're a US or EU buyer purchasing a vehicle in Canada for export, you're importing it as a non-resident importer (NRI). The reverse scenario also applies: Canadians buying vehicles in the US and importing them home. CBSA's NRI rules allow duty deferral or exemption in specific cases, but the CAD filing is still mandatory. We see this frequently with classic car auction purchases and cross-border lease returns.
The trap here is provincial registration. Quebec, Ontario, and BC each have different rules for registering an imported vehicle. CBSA clearance (federal) does not equal provincial registration eligibility. Transport Canada RIV compliance (federal safety inspection) is required before any province will issue plates. Some provinces also impose a retail sales tax or used-vehicle levy on top of the federal GST collected at import.
15-Year Exemption Rule
Vehicles 15 years old or older are exempt from most Transport Canada safety requirements under the Motor Vehicle Safety Act. A 2009-model-year vehicle imported in 2024 qualifies. RIV registration is still required, but the federal inspection is waived. This exemption has made classic and JDM (Japanese Domestic Market) vehicle imports a growing segment. CBSA still collects applicable duty and GST; the exemption is regulatory, not financial.
HS classification for used vehicles is the same as new vehicles (8703.xx series). Declared value is based on fair market value at time of import, not original MSRP. CBSA may challenge a declared value if it's materially below comparable sales data. We prepare a market-value worksheet for high-value or rare-model imports to support the CAD filing.
Physical Inspection and Delay Risk
CBSA may physically inspect any vehicle at the border or at an inland sufferance warehouse. Inspection flags are algorithmic (targeting rules not publicly disclosed) but commonly triggered by first-time importers, high-value declarations, or mismatched VIN and title documentation. An inspection adds 2 to 5 business days to clearance. If the vehicle is held for detailed examination, storage and handling fees accrue at the CBSA examination facility or the bonded warehouse where it's transferred.
PARS (Pre-Arrival Review System) is available for commercial vehicle imports if the carrier e-manifests the shipment. Private imports driven across the border by the owner do not qualify for PARS. CBSA Form 1 must be presented at the port of entry. If RIV registration is not complete and the vehicle does not qualify for an exemption, CBSA will refuse entry.
What This Costs
Our single-entry vehicle brokerage fee is CAD 250 to 400 depending on complexity (title documentation review, bond posting, customs query resolution). RIV fee is $195. Duty (if applicable) is 6.1% MFN or 0% under CUSMA. GST is 5% federal (some provinces collect HST at a combined rate at time of import). Provincial registration fees and safety inspections are additional and vary by province.
Budget 5 to 10 business days from border arrival to provincial plate issuance if all documentation is correct and CBSA does not flag for inspection. If you're importing a vehicle and the title is not in your name, expect additional delays while CBSA verifies chain of custody. We file a lot of CADs where the declared importer is a numbered company or dealership, and the beneficial owner is an individual. That structure is legal but requires clear supporting documents.
Most vehicle import delays we see are RIV registration issues, not customs issues. Transport Canada's RIV portal is separate from CBSA's CARM system. If RIV registration is incomplete or the vehicle's VIN does not match Transport Canada's admissibility database, the vehicle will not clear CBSA even if the CAD and duty payment are correct.
We file vehicle imports daily. If the CAD or bond side is unclear, talk to a broker.
Frequently Asked Questions
Do I need a customs broker to import a car from the US?
Not legally required for private imports, but a vehicle import broker handles the CAD filing, bond posting, and CBSA Form 1 documentation. Most first-time importers underestimate the RIV registration requirement and face refusal at the border.
What's the RIV fee for importing a vehicle to Canada?
Transport Canada's RIV registration fee is $195 plus applicable GST/HST, separate from customs duty and brokerage fees. The fee is the same regardless of vehicle value.
How long does vehicle clearance take at the border?
If all documentation is correct and CBSA does not flag for inspection, clearance is same-day. Physical inspection adds 2 to 5 business days. Provincial registration takes an additional 3 to 7 days after federal clearance.
Can I drive my imported car home the same day?
Only if CBSA clears it and you have proof of RIV registration or exemption. Without RIV compliance, CBSA will not release the vehicle. Temporary import permits are available for short-term stays but do not allow provincial registration.
What happens if my vehicle doesn't meet Transport Canada standards?
Vehicles that do not meet federal safety standards and do not qualify for the 15-year exemption under the Motor Vehicle Safety Act cannot be registered in Canada. CBSA may allow temporary import for repair or re-export, but permanent import is refused.
What duty do I pay on a used car from the US?
CUSMA-origin vehicles (US/Mexico/Canada-built) are duty-free. Non-CUSMA vehicles face the 6.1% MFN tariff rate per CBSA's Customs Tariff on declared value. GST is 5% federal (or HST in participating provinces) on value plus duty.
Is the 15-year exemption rule the same for all vehicles?
Yes, vehicles 15 years or older are exempt from federal safety inspection requirements per Transport Canada's Motor Vehicle Safety Act. RIV registration is still mandatory, and customs duty and GST still apply if the vehicle is non-CUSMA origin.
Originally published at https://www.canflow-global.com/en/insights/vehicle-import-broker-what-cbsa-clearance-actually-costs/.
