Importing parts from Canada to US

[veeman]

For those of you who have done "across the border" type of transactions, can anyone describe what the rules / regulations are surrounding importing an engine / transmission/parts from Canada to the US?

I've heard you need a bill of sale and that you might have to pay sales tax on its way into the US.  Are there any other forms needed / gotcha's with customs?  

I'm looking at importing an engine /transmission from Canada (personally going up there and bring it back) and for what this costs, I don't want any hangups...

[BlackTieTD]

i would just have it in the back and not declare it or anything.

its just an old engine...

if they asked i'd say a friend was helping me put it back together or something.

thats just me. if it was something i felt warranted being taxed and should be declared, then i would. this is an old VW engine.  :roll:

[veeman]

Well... the thing is that it's a relatively recent engine (not new though) that we never got in the US.  The whole drivetrain will essentially be a "lump" in the back of the truck.

I'm just worried that if I don't declare it, they could ask why I have essentially an entire car's drivetrain in the back of a truck, etc...  I'd hate to get it confiscated.

[BlackTieTD]

ya its a tough call if its all together.. not sure how i'd handle it.

is it a gift, or are you actually buying it? if you are actually buying it, it might be worth getting a bill of sale and declaring it. should just be regular tax like anything brought back over the border.

[veeman]

Yes, I'll be purchasing the engine / transmission...  

I'd imagine they calculate the tax from the bill of sale, but what rate do they use?  Michigan state sales tax if I cross in Detroit?

[DVST8R]

Make it to be a "warrenty replacement" or "core" and then have a bill of sale that reads like $50.00, then at most you will be charge state sales tax, and duty on that, but more than likely, they will just leave it alone. If for some reason they ask why you got it so cheap say I guess them canadian's must just be crazy? then ask them why? how much is a core normally worth? they won't have a clue. Good luck.  :wink:

[935racer]

Yeah whenever I take engines across the border either way I just write up a bill of sale sayin its a core motor and it cost $50. The diesels are so dirty anyways I usually get a "doesn;t look like its worth $50 to me" and they just wave me through.

[Otis2]

Veeman, I would suggest you declare it.  The tax, if any, will be trivial.  Probably 5% or less.

The expensive thing is to take things across in the other direction - from the USA to Canada.  

Going in that direction, the customs agents will hit you with 7% provincial tax, plus 7% federal tax (GST), and, if you can't prove the goods were made in either the US, Canada or Mexico (the NAFTA states), then you get hit with a further 9% duty charge.

So taking a german engine from USA to canada = cost plus 24% taxes (not counting brokerage fees if you have it shipped).
Taking a german engine from Canada to USA = (I would guess) cost plus 5% taxes or less...

And 935 Racer - better rethink that tactic.  I took a used water-cooled intercooler across the border last year, and being a good boy, declared full price value.  Even so, I was ushered into the search area, where they informed me that everyone importing auto parts into Canada that week was being given the fine-toothed comb search, as they were well aware that Canadians habitually under-declare the value of auto parts.  They spent about an hour fiddling on their computers - I couldn't see the screen, but I suspect they were surfing Ebay.  They were just salivating to catch me.  Too bad for them that I was honest!  They eventually just got bored and sent me on my way, after about an hour of cooling my heels.

Canadian customs agents are getting meaner every year, demanding 40% pay raises and guns, and they've pulled a bunch of wildcat strikes, closing down borders and even Dorval international airport last year.  Your tax dollars in action (or maybe not yours exactly, if you habitually under-declare!).

[Jeff@TheQuadShop]

I just brought a 1.9 across, I told them that I just purchased it from a salvage yard. He asked me what I was going to install it in and I told him a Suzuki Samurai. He said ok and sent me on my way.

[cipo28]

Yes, I'll be purchasing the engine / transmission...  

I'd imagine they calculate the tax from the bill of sale, but what rate do they use?  Michigan state sales tax if I cross in Detroit?

Hey veeman,
If you bought the parts from Canada, you paid taxes right? If you attempt to pass the border with these parts, or anything else you purchased in Canada....and you have all the bills....why don't you apply for refund all the taxes you paid on your bills at the canadian custom, at the border? In this way, you recover your taxes (15%) paid in Canada.
At the US border....It's up to you if you want to declare your goods....but you can say that you purchased them from a wreck yard.
Good luck!

[935racer]

Otis2

I've been doing this for years, if they don't care, I don't care. They could have taxed me if they wanted to.

[veeman]

>>If you bought the parts from Canada, you paid taxes right?

Uh...Well, I'll be buying it "from Canada"  in a roundabout kind of way.  The engine is coming from Europe, but the person selling it to me will be located in Canada.  Since it's coming from an individual, I don't think I'll be paying those taxes.

>>I would suggest you declare it. The tax, if any, will be trivial. Probably 5% or less.

I think it will be the safest thing to declare the engine at the border... Does anyone know how they determine the tax rate coming into the country?  Is it based on the state tax of the state you cross into? In this case, that should be Michigan.