Importing a Bike from the US to Canada

Importing a Bike from the US to Canada

Importing a Bike from the US to Canada

I recently (10/13/07) imported a 2007 DL650 from the US (Portland Motorcycles) and thought I’d share the experience with other Canadians considering doing the same. I pooled a lot of good information from friends and forum members and wanted to pass the information along to anyone who might be interested. The whole experience is actually pretty easy if you take the time to get your paperwork straight. This description looks long and involved but actually the process is very simple.I’ll assume you already have a bike in mind at a dealership or privately in the US. Of course buying from you local dealer is also an excellent idea and I am not trying to influence anyone to do otherwise.

What you need:

1)The single most important piece of paper you will need is the Title (also called the Vehicle Certificate of Ownership) for the motorcycle. (Regardless of whether it was bought privately or through a dealer). Have the seller fax you a copy of the title. VOID will appearon the certificate when it is photocopied.

You should ask if there is a lien on the bike (from a US bank). If there is you will have to have it removed before you bring it over the border.

2)You need a get a copy of the bill of sale. Something that says what you have agreed to pay and what is included. This will have the bike model, vehicle identification number (VIN), mileage, your name andthe sellers name and signature (if you are buying privately). If you are buying from a dealership get the salesperson’s name and a signature from the sales manager (this ensures the price will not change). This basically ensures that when you get there the bike will be what you agreed to on the phone. You might be thinking, well how do I get the bill of sale before I go down and buy it? The answer is that you ask the seller to send it before you actually purchase the bike. At this point it’s more of an agreement on price but it looks like a bill. The bill I received before the purchase and after the purchase were nearly identical. You need the bill for the recall clearance letter below. If you don’t get the bill of sale before the purchase don’t worry. You will have enough time to get it when you get back. But you will be waiting for it when you could be riding the bike (depending on what time of year you buy it).

3)If the bike is used you should request a claim history inquiry that tells you any details about accidents. This is just more evidence that the bike is as advertised and that there will be in no surprises when you get there (a disclosure of sorts). Not absolutely necessary.

4)You will need a recall clearance letter from the manufacturer(in my case Suzuki). You should send for it as soon as you have the Vehicle Identification Number (VIN) and the bill of sale as it can take a few weeks (mine took 10 days). This assures transport Canada that there is no recall on the bike. The letter must come from Suzuki’s head office and be written on official company letterhead, duly signed with the name and position of the official visible. The manufacturer’s logo and the bike VIN must also be on the letterhead. This is a standard form letter and should be easy to get. I called the office to enquire about the progress of my letter ((714) 572-1490) and found them very friendly and helpful. I have heard that getting the letter from some of the European manufacturers can be difficult.

Here is what I faxed to Suzuki to request the recall letter:

To: SUZUKI USA: Recall Clearance (Fax: 714-577-9525)

Attention: Christine

From: Your name and email / fax / phone

RE: Recall Clearance Letter for Suzuki DL650

In order to comply with the Canadian Registrars of Imported Vehicles (RIV), I require a Recall Clearance letter from the manufacturer indicating there are no current recalls outstanding on this motorcycle (DL650).

Enclosed is a copy of the title from the previous owner and the bill of sale. The serial number is JS1VP00B000000000. Please fax and email the recall letter to me:

Fax: XXX-XXXX with a note indicating – “Attention: My Name”

email:

Thank you for your assistance.

Sincerely,

Your Name

Mail Address

Phone number

Here is the letter you should receive in return:


Scan the letter (make it into a word or adobe acrobat pdf file if possible) so you can email it to Transport Canada (see below) when you import the bike.

What to do with the Title:

1)Choose the border crossing where you plan to bring the bike across from the US. Obtain both the phone and fax number for that crossing. Fax a copy of the title and a cover letter (explaining that you will be importing the bike) to that US customs location at least72 hours before you try to import the bike. US customs gets these titles all the time but the cover letter is a good precaution. Here’s an example of a cover letter:

Dear Sir/Madam

Please find attached a copy of the title for a 2007 Suzuki DL650 motorcycle. I wish to have this title processed so that I can import the motorcycle on (date you anticipate crossing the border). If you have any questions please feel free to contact me by phone, fax or email.

Thank you,

Your Name

(Your phone, fax and email).

Once you have faxed the title call the border and comfirm it was received. (I actually had to fax twice as the first fax was lost). Don’t proceed with the purchase until you know the fax was received. They require 72 hours to process it. Actually a third party processes the title (checks for liens etc.). Call the border 24 hours before you leave and confirm that the title has been cleared. You can identify your title by the certificate number on it (usually a 10 digit code at the top of the document) and your cover letter. Keep copies of both so when you get to the border with the bike it will be easier for them to find your title among the hundreds of others in the pile.

Getting the Bike:

1)Drive to the dealership and pick up the bike. You will get the official title as well as an official bill of sale. Remember to check the Vehicle Identification Number (VIN) to see if it matches the title and the bill of sale. Inspect the bike and ask for any relevant documents (extended warranty, owner’s manual, odometer disclosures, etc). The bill should show you owe nothing on the bike.

2)Transport your bike to the US customs location you chose (and where you faxed the title). This next step may seem awkward but you need to enter the lobby of the US customs before you come back to Canada. (If you enter Canadafirst you will be directed back to the US). Once you are in the lobby show the US customs officer thebike title (you have the original now). He will find the faxed version and then stamp the original title. Now you can enter Canada.

3)Show the Canadian customs agent your stamped title and declare whatever else you might have purchased. If you have been out the country for less than 48 hours (eg. 47.9 hours) you will get no exemption. If you are over 48 hours you can claim $400. Only one person can claim $400 on the bike (ie. you can’t pile 10 people in the car and get $4000 off the bike). If you are under 48 hours you get no exemption. There is a $50 exemption (24 hours) that is void if you go over $50.

4)You will enter the Canada Customs building where an agent will fill out a Vehicle Import Form (form 1) (that has 4 coloured pages). They will need the month and year of manufacture of the bike (located on the VIN stick on the bike (eg. 10/07)). Check that all the fields are filled in correctly before you leave customs. In my case the customs agent mistakenly identified the manufacturer of the bike as Kawasaki not Suzuki. You will be required to pay the GST (6%) on the adjusted purchase price of the bike at this point. Customs accepts debit, visa or cash. You will also receive a Casual Goods Accounting Document (blue form) that you will need when you register the bike. This form will show the current value (using the current exchange rate) of the bike and the amount of GST (now 6%, but going down to 5% Jan 2008) you paid on that exchange adjusted amount. Keep these forms. You will need them to register the bike in the end. You will keep the white and gold pages of Vehicle Import Form.

Note: Do not pay an import duty on your motorcycle. I have had people tell me that they paid 6.1% import duty on their bikes. This duty should not be paid!You pay an import duty on everything (cars, ATVs, etc.) except motorcycles. I called the Canadian customs on two separate occasions and asked this question. One officer told me there was definitely no import duty on Japanese motorcycles, another had to check the regulations but also confirmed there was no import duty. In both cases I asked and received the officer’s badge numbers so I would have something to defend my claim. When I imported my bike the officer initially said there was a 6.1% tax, but before I could bring out my badge numbers he changed his mind and said that only motorcycles were exempt. The customs officer simply looks at the VIN and sees the J for Japan and immediately thinks import duty. Don’t let them make this error.

5)You will need to process the Vehicle Import Form (form 1) you received at Canadian customs through Transport Canada. There is acase number with an H prefix on the top right corner of the form (eg. H987654). The simplest and fastest way to process this form is to use the web.

6)Point your browser to Once there click on “Importing a US vehicle into Canada” any you will be in the “How to import section”. Click on “On-line payment” and you’ll be able to enter the information from the Vehicle Import Form to start the process rolling. Your visa will be charged $207.60 for filing this form. Click on “Recall Clearance” (tab at top right of the page). You will see the clearance letter email link which just opens up your mail program to send a message to Attach the scan of your recall letter and write a short note explaining the email. Include the “H” and six digit number from the Vehicle Import Formas well as your name, phone number and physical address. If you prefer not to use the web you can fax it (1-888-642-9899) or snail mail it in.

7)RIV will send you the Vehicle Inspection Form 2. Although I included my fax and email and requested email delivery, I still ended up getting them in the regular mail. It took roughly two weeks. Notice the Vehicle Inspection Form says I have a Kawi! (taken from Form 1). I had that corrected when I registered.

8)Take this form and your Form 1 (Vehicle Import Form) to Canadian Tire and have the bike inspected. My local Canadian Tire would not inspect on Sundays so check before you go. You don’t need an appointment (at least I didn’t). The inspection fee ($25) is included in the $207.60 you already paid. They will inspect the bike and make sure the VIN matches the bike, record your mileage, gross vehicle weight, etc. The actual inspection time is about 5 minutes. The inspector will then stamp Form 1 (Vehicle Import Form) and 2 (Vehicle Inspection Form) and immediately fax them to Transport Canada for you.

9)Now go to your insurance agent (Autoplan) with the bill of sale, the Casual Goods Accounting Document (blue form), your driver’s license, the original title for the bike and the inspection forms (1 and 2) stamped by Canadian Tire. You will have to pay the provincial tax at this point to register the bike. The blueCasual Goods Accounting Documentshould be used to calculate the provincial sales tax. My agent mistakenly used the bill of sale and I had to have it corrected. You don’t want to pay PST on the US price. If the exchange rate is considerable (as it is now) the value in Canadian currency will be much lower and you save on the amount of PST you have to pay.

10) They will take the original title and one copy of the form 1. They will also copy your bill of sale. The bike is now yours. You don’t actually have to insure it at this point. That can be done later if you wish.

Here are some other items that I found useful during the trip:

- Ratcheted tie downs to secure the bike.

- Soft straps to avoid scratching the bike.

- A bike cover for heavy rain.

- Towels to put under the straps if they touchedthe bike.

- A large envelope or file folder to carry all paperwork (faxes, title, bills, slips, etc).

(Take this with you everywhere so you aren’t caught without the right piece of paper).

I paid cash for a 2007 DL650 ABS with 1800 miles from Portland Motorcycle ( (I have no affiliation with them whatsoever). The salesman I dealt with was Steve “Kiwi” Neilson. I can’t say enough about how great he was to deal with. Again, I have no affiliation with him either.

Some of you may be asking what the real final cost for the bike. I kept every receipt and slip from my trip. My bike was in PortlandOregon (~900 km from my house). At the time I purchased the US dollar worth slightly less than the Canadian dollar (1 CDN = 1.03 USD) but I will consider the exchange rate to be equal. However, a few days ago the dollar briefly hit 1.10 US and now sits at 1.07. That makes quite a difference.

Some may think it a bit unfair to compare used and new but my price was not exceptional. I have seen a number of forum posts from people who bought new for what I paid for my bike.

Total Costs:

Withdrawing $6000 in US Funds from the bank: $27

DL650 ABS: $6500(all in / out the door)

Canada Customs GST(6%) charge on the bike: $379.82

PST on the bike: $443.12

Processing the RIV and inspection at Canadian Tire: $207

Gas to Portlandand return in 1998 Chevrolet Silverado ($2.77 to $3.14/US gallon): $197

One night MOTEL6 Portland: $63 (including taxes)

Sushi Dinner for two in Portland (brought the wife along :) : $33

Actual all in was $7850(rounded up).

$9951 was the best price I could find for a new 2007 DL650 ABS ($8500 plus fees (~$200) and tax (GST 6% and PST 7%). Taking into account its location (~1000 km round trip) it would have cost me $120 (based on Canadian gas prices) to drive it home in a truck.

$7850 vs. $9951 = ~$2000+ savings

I was initially thinking of buying the bike with VISA. I did initially put a $500 down payment on the bike with VISA. I called VISA and enquired about the cost of using my credit card for the entire transaction. There is a 2.5% fee which amounts to $163. I opted to use cash and took it from my local bank at a cost of $27.