Tariffs on Old Cars Now a Reality

[BJCHEV396]

Originally Posted by 1967 4K

This sucks!!! 👎👎👎

X2!!!!

[prototype]

Originally Posted by 67since67

In 1982 I sold a roadworthy project El Camino and a bed full of parts to two gentlemen from Hamilton ONT. They were very happy that it had a mis-matched color fender from another car that they said would be leverage to limit the duty (Tariff) value at the border which seemed substantial back then.

So maybe the only thing new here is the increased percentage of value to import into CAN??

A couple years ago I was pursuing a Beaumont SD. TFX was going to handle the paperwork at the border but the numbers quoted for coming this way weren't anything substantial.

Your El Camino situation was common place in those days. Vehicles that were less than 25 yrs old were subject to duty, so a vehicle that appeared in poor condition was often declared at a lesser value, thus less duty and tax.

Once a vehicle was over 25 yrs old the duty wasn't applicable so it didn't matter.

In the case of the 68 Charger, yes it will only increase the value to import

98,000 USD purchase price......1.44 exchange rate to Canadian

141,000 Canadian value for purchase price
35,250 25% tariff (duty)
176,250 Canadian import value
8,812.50 GST (federal goods and services tax)
185,062.50 Total cost of vehicle in Canada

If the vehicle originally came with A/C there is a tax on that
In Alberta there is no provincial (state) tax (just like Oregon and Montana)
Other provinces have provincial sales taxes (PST) or harmonized sales tax (HST) which combines the provincial and GST.

This is our little world. If tariffs continue it will certainly put the brakes on our old cars.

[L78M22Rag]

I was planning on bringing a vintage vehicle from the US into Canada, and was caught off guard by these tariffs as well. Looking into it, I discovered that the big three auto makers entered into the Auto Pact back in 1964 which was signed early in 1965 where they worked together on both sides of the border supplying parts for the manufacturing of these cars to avoid the tariffs at the time. I was going to use this as my argument at the border. Here’s an article on the Auto Pact…

https://www.hemmings.com/stories/mad...-pact-of-1965/

Curious what your thoughts are on this?

[Tracker1]

Originally Posted by L78M22Rag

I was planning on bringing a vintage vehicle from the US into Canada, and was caught off guard by these tariffs as well. Looking into it, if realized that the big three auto makers entered into the Auto Pact back in 1965 which was signed early in 1966 where they worked together on both sides of the border supplying parts for the manufacturing of these cars to avoid the tariffs at the time. I was going to use this as my argument at the border. Here’s an article on the Auto Pact…

https://www.hemmings.com/stories/mad...-pact-of-1965/

Curious what your thoughts are on this?

I'd say save your breath, the officers you will encounter are just doing what they are told. I brought parts across last week, a mix of used and new reproductions. I paid my HST and was told " no tariffs on auto parts." That is likely because of the Auto Pact I'm guessing. But an assembled car from the USA is now going to be subject to tariffs. No ifs, ands or buts. I would hold off until calmer heads prevail on this.

[BJCHEV396]

Originally Posted by Tracker1

I'd say save your breath, the officers you will encounter are just doing what they are told. I brought parts across last week, a mix of used and new reproductions. I paid my HST and was told " no tariffs on auto parts." That is likely because of the Auto Pact I'm guessing. But an assembled car from the USA is now going to be subject to tariffs. No ifs, ands or buts. I would hold off until calmer heads prevail on this.

I hope calmer heads do prevail.

[1967 4K]

Lot of nice cars and good Car Guys in Canada. Make it hard for us to trade with one another, but what are ya going to do! 🤷*♂️

[turbo69bird]

Didnt read this whole thread but part of the reason “part” is that in 2016 to 2020 when Trump put tariffs on China goods they found their way around it by using Mexico and CANADA as a way in without them

But that’s just a piece of it , we have a deficit and many countries charge us a tariff we don’t need their crap and they need our crap so why should we pay them a tariff or in a
Some cases they call it a tax. We shouldn’t. Sometimes you got deal w a little headache to fix a problem .
But most of it is propaganda. Like when they squawk about shutting down the government for the budget. That’s all fake. . It only really stood 20 percent of the government which saves us money BUT even the prime who work that get the shut down get paid in arrears when it reopens.
None of it is a really big deal.

[turbo69bird]

When I bought my boat in Canada years ago mate 2006 or so. The guy was selling it because he bought a boat and brought it into Canada and lied about what he paid. This boat was about $350k at the time. They confiscated it and somehow found out what was paid. He was selling my boat to get the money to pay the fines to get it out of impound.
Around the same time my buddy sold a turbocharged capri (mustang) to a guy in Canada who also lied and somehow they found the info on what was paid. Also confiscated. Heard it Took 2 years to release that car. And big fines. That’s unrelated to tariffs but what I’m showing is Canada is very serious about collecting thier taxes to balance their budget.

[prototype]

Originally Posted by L78M22Rag

I was planning on bringing a vintage vehicle from the US into Canada, and was caught off guard by these tariffs as well. Looking into it, if realized that the big three auto makers entered into the Auto Pact back in 1965 which was signed early in 1966 where they worked together on both sides of the border supplying parts for the manufacturing of these cars to avoid the tariffs at the time. I was going to use this as my argument at the border. Here’s an article on the Auto Pact…

https://www.hemmings.com/stories/mad...-pact-of-1965/

Curious what your thoughts are on this?

Helmut.....Tracker is on track, sage advice.....the officers at the border will do what they are instructed to do.

Getting an advance ruling would be the only way you'd have a chance but it appears it's gone for now. There is an election being called for Apr 28, however with the carbon tax off now they are likely looking to put cash in the till any way possible. Nobody will loose many votes using vintage cars as platform to reduce $$ in the till.

With now into the hundreds of my imports over the years the only other advice I'd give would be to call the crossing in advance and ask for the port director. I've been given the cold shoulder and also had the red carpet treatment however they won't bend the rules.

What I don't understand about the gent in Winnipeg with the 1968 Charger is when doing an export, you stop at US Customs to have the vehicle exported, then get to Canada Customs to pay your taxes. If you don't import the car and then return, you have to import the car back into the US, which I don't believe you can do as a Canadian citizen, not sure. That would leave you having to put the car in a bonded warehouse just like a seized vehicle.....and I'm sure those rates are wonderful.

[LT1vette]

Originally Posted by prototype

Helmut.....Tracker is on track, sage advice.....the officers at the border will do what they are instructed to do.

Getting an advance ruling would be the only way you'd have a chance but it appears it's gone for now. There is an election being called for Apr 28, however with the carbon tax off now they are likely looking to put cash in the till any way possible. Nobody will loose many votes using vintage cars as platform to reduce $$ in the till.

With now into the hundreds of my imports over the years the only other advice I'd give would be to call the crossing in advance and ask for the port director. I've been given the cold shoulder and also had the red carpet treatment however they won't bend the rules.

What I don't understand about the gent in Winnipeg with the 1968 Charger is when doing an export, you stop at US Customs to have the vehicle exported, then get to Canada Customs to pay your taxes. If you don't import the car and then return, you have to import the car back into the US, which I don't believe you can do as a Canadian citizen, not sure. That would leave you having to put the car in a bonded warehouse just like a seized vehicle.....and I'm sure those rates are wonderful.

First... Each port of entry seems to have different rules, also rules differ per officer per day.

Second.. The advance ruling doesn't mean anything, You deal with the officer/port of entry on the day of entry.

Third.. the car could/would be placed in a "bonded area" on the Canadian side. Otherwise you would be crossing the border twice to import the car...Twice the import fee. ( I don't see the customs letting you bring it back second time without paying...)

Turbo69Birds point.... How did they find out? How would you find the car? Google that's how!!!
I brought a 99 FRC Vette into Canada around 2010. Did all the proper paperwork, everything by the book. Luckily the owners wife was lawyers personal assistant. (I had no idea she was, but she did ALL the paperwork for her husband. Changed the ownership at the state office, had her lawyer boss notarize the bill of sale.)
Saved my azzz.
When I got to the Canadian border, they took my paperwork and went inside. In less then 15 minutes he came out with the print out of the ad I had bought the car from in the Autotrader.
A college kid, working as a customs agent for the summer. He said to me, word for word. "You don't know how many of you guys we catch lying about the value!!"
I had the original dealer window sticker in a file and they found that thinking I was lying