Will classic cars imported into Canada from the USA get charged a surcharge?
Classic cars (vehicles 15 years or older) imported into Canada from the USA are generally exempt from certain import requirements like the Registrar of Imported Vehicles (RIV) inspection, thanks to the 15-year rule under the Motor Vehicle Safety Act. However, whether they face a surcharge depends on specific factors, including recent tariff policies and the vehicle's characteristics. Here’s a breakdown based on available information:
Duties and Taxes (No Surcharge in Most Cases):
No Import Duty for NAFTA Vehicles: Vehicles manufactured in the USA, Canada, or Mexico (NAFTA/USMCA countries) are typically duty-free when imported into Canada. Most classic cars from the USA fall into this category, so no import duty (normally 6.1% for non-NAFTA vehicles) applies.
Goods and Services Tax (GST): A 5% GST is applied on the vehicle’s value (converted to CAD) at the border, regardless of age. This is standard and not considered a surcharge.
Provincial Sales Tax (PST): PST is applied when registering the vehicle in your province, based on the local rate (e.g., 7-12% depending on the province). This is also standard, not a surcharge.
Air Conditioning Tax: A $100 excise tax applies if the vehicle has air conditioning.
Gas Guzzler Tax: For vehicles manufactured after March 19, 2007, with fuel consumption of 13+ liters per 100 km, an excise tax of $1,000-$4,000 may apply. Most classic cars (pre-2007) are exempt from this.
Potential Surcharges (Tariffs):
Recent reports indicate possible surcharges on classic cars due to retaliatory tariffs Canada has imposed in response to U.S. trade policies:
A notable case involved a Winnipeg man importing a 1968 Dodge Charger from the USA, who faced a $46,636 CAD surtax on a $98,000 USD purchase. This was due to Canada’s 25% tariff on certain U.S. goods, which can apply to classic cars despite their age-based exemptions from safety regulations. The tariff was later resolved in this case, but it suggests classic cars are not always exempt from such surcharges.
A post on X from April 12, 2025, notes that classic cars are generally exempt from the 25% import tariff, but there’s a “catch” (details unclear, possibly related to specific conditions like vehicle value or modifications).
Key Considerations:
Vehicle Age and Condition: Vehicles over 15 years old are exempt from RIV fees (around $325 CAD) and federal safety standard compliance, making importation easier. If the vehicle is over 25 years old and unmodified, it may also be duty-free even if not NAFTA-made.
Proof of Age: You must provide valid proof of the vehicle’s age (e.g., manufacturer’s compliance label or title) to qualify for exemptions. Without this, the Canada Border Services Agency (CBSA) may apply stricter import rules, potentially leading to denial or additional costs.
Provincial Registration: Even if imported successfully, some provinces may not register certain vehicles (e.g., right-hand drive or salvage-title cars). Check with your provincial licensing authority before importing.
Recent Tariff Policies: Canada’s retaliatory tariffs (e.g., 25% on U.S. goods) can apply to classic cars, as seen in the Dodge Charger case. These tariffs are not standard and depend on trade disputes. Always check current CBSA policies or consult a customs broker for clarity.
Example Cost Breakdown (No Tariff):
For a $41,000 USD classic car (converted to $56,580 CAD at 1.38 exchange rate):
GST: 5% of $56,580 = $2,829
Air Conditioning Tax: $100 (if applicable)
Total at Border: $2,929 (plus PST at registration, e.g., 7% in Ontario = ~$3,960)
No RIV Fee (since over 15 years old)
No Duty (if NAFTA-made)
If a 25% tariff applies, add $14,145 (25% of $56,580), significantly increasing costs.
Recommendations:
Check Current Tariffs: Given the Dodge Charger case and evolving trade policies, verify with the CBSA whether a 25% tariff applies to your specific vehicle.
Use a Customs Broker: Importing can be complex, and import professionals can navigate paperwork, tariffs, and CBSA requirements to avoid surprises.
Confirm Provincial Rules: Ensure your province will register the car to avoid import headaches.
Calculate Total Costs: Use tools like Clearit.ca’s car import calculator or contact the CBSA for an estimate, factoring in potential tariffs.
In summary, classic cars from the USA typically face no import duty or RIV fees if over 15 years old and NAFTA-made, but you’ll pay 5% GST, possible excise taxes, and provincial taxes. However, retaliatory tariffs (e.g., 25%) may apply in some cases, as seen in recent examples, so confirm current policies with the CBSA or the Canadian importation professional working with the customs brokers to avoid unexpected surcharges.
