I'm in AB where there's no PST and Luxury Tax, so all I paid was the GST.

However, be careful when you pay Canada Customs, they calculate the tax based on what you pay. In my case Canada Customs charged me the tax based on the complete price of my bill of sale (vehicle price + state tax). Make sure they charge you taxes based on the vehicle's price without any state taxes.

I had to pay the state tax as my vehicle was purchased out of a dealership in Chicago. I am in the process of obtaining my refund of the state tax with the Dealer as they have received a copy of my vehicle's export documentation. Now I have to go back to Customs and claim the difference.

Agreed, no duty on the X5. GST is paid at the border. PST is paid when you get your plate.

I understand BMW is now charging $500 for the recall letter!

You will have to get the DRLs activated. You might need new bilingual visors.

Standard warranty is honoured in Canada. CPO Warranty & free maintenance are not honoured.

Also expect a lower resale price when you sell. Two dealers recently refused to take my American M Coupe as a trade-in.

No need to pay $500 to BMW-Canada for Recall clearance letter. Get one from US BMW dealership. I guess you need one only if you want your BMW to be covered under warranty. But mine is already out of warranty. BMW Canada operates differently from BMW-USA and I have read that it use this money to go to pool which is used to cover warranty issues for US cars. It is weird but that's how it works as far as i know.

I realize there is no duty charged on vehicles built in the U.S. such as the X5. For other vehicles such as the 5 series, you pay 6% duty and 6% GST.

Do you pay duty only on a new vehicle or even on a used vehicle you're bringing into Canada?? I heard there is no duty on used cars, but I could be wrong.

igosal: do I just call any BMW dealer in the US and ask for the letter. Is this letter accepted in Canada when I try to register the car?


For those of you that imported an X5 to Canada, do you know what modifications need to be done, I know that daytime running lights have to be activated by the BMW dealer, but I am not sure about other modifications that need to be done.


Thanks for the information guys. I really like this site.

Here's a description of the import process. Should be similar for the X5.
http://legacygt.com/forums/showthread.php?t=24153

Here's an article from The Globe and Mail (Canadia's "National Paper") I thought it might help. Attention shoppers: beware red tape


JEREMY CATO
From Thursday's Globe and Mail

• E-mail

November 29, 2007 at 12:00 AM EST

According to the North American Automobile Trade Association (NAATA), a trade group of vehicle importers and exporters, the number of vehicles bought in the Unites States and imported into Canada is on pace to reach 164,000 this year.
That's a large number. However, according to DesRosiers Automotive Consultants of Richmond Hill, Ont., most of these vehicles are used and not new. President Dennis DesRosiers estimates that just 20,000-25,000 of the projected 164,000 imports for 2007 will be new models.
But he also points out that this year Canadians will buy about 4.4 million light vehicles new and used, in total. Of that, new-vehicle sales in Canada are on pace to hit more than 1.8 million this year, more than 11 times the number of imports — new and used — projected by NAATA.
"I would argue that 150,000 imports represent a very small fraction of the (total vehicle) market," DesRosiers said in a note to clients.
http://images.theglobeandmail.com/ar...cover29wh1.jpg
Enlarge Image (LORI LANGILLE FOR THE GLOBE AND MAIL)



The numbers show that the vast majority of Canadians continue to buy their vehicles in Canada. The conclusion: They are unwilling to go through the hassle of importing, and they are satisfied with the value they receive by buying in Canada.
Canadian manufacturers and distributors have moved to increase vehicle content and adjust transaction prices and finance and lease rates in order to remain competitive with U.S. pricing. This is necessary because a majority of Canadians live in reasonably close proximity to the Canada-U.S. border. The option to buy in the United States does exist.
But that does not mean it is easy and uncomplicated for an individual to buy and import a vehicle from the United States. And not all vehicles sold in the United States are admissible to Canada, based on Canadian federal regulations.
For instance, a controversial new federal safety standard that came into effect Sept. 1, 2007, requires all new passenger vehicles imported into Canada to have an approved anti-theft immobilization system. The regulation means that cars unable to meet the standard are tagged "inadmissible" for use here by Transport Canada.
Finding out about and meeting such government requirements are two of the challenges facing Canadians importing vehicles from the United States. And there are others.
Indeed, vehicles on both sides of the border aren't always similarly equipped, and modifications have to be made to conform to Transport Canada regulations. Moreover, when owners go to resell their cars, those bought in the United States are considered "grey-market" vehicles. That is, they weren't built for the Canadian market and this can make them more difficult to sell.
Those considering a cross-border import must also consider the new-vehicle warranty. Not all are honoured in Canada and those that are may still pose difficulties for owners. For instance, owners may have to pay for warranty work done in Canada and then seek reimbursement from the U.S. sales arm of the particular manufacturer.
Another consideration: Cross-border leases and purchases cannot be financed through auto makers. This means Canadians shopping in the United States are not able to take advantage of generous lease and finance rates now offered widely in Canada. Instead, consumers shopping in the United States will need to arrange bank financing or lines of credit or pay cash.
Those who do wish to import a new vehicle from the United States will find the process outlined by the Registrar of Imported Vehicles at www.riv.ca.
In a nutshell, the process looks like this:
1. Can you import it?
First, you need to find out if the vehicle you want to import is admissible and can be modified to meet Canadian regulations for things like bumpers. Not all vehicles sold in the United States meet or can be modified to meet Canadian standards, though most can be. All 2008 General Motors, Hyundai and Suzuki models are not admissible; some Ford, Honda and Toyota models are also not admissible.
Buyers/importers would be wise to contact the appropriate manufacturers to verify admissibility and to consult the Transport Canada list of admissible vehicles at www.tc.gc.ca/roadsafety.
2. Making changes
If modifications are required, owners must find out what they are and arrange to have them done within 45 days of importing the vehicle. Owners must ensure that all modifications are done by those authorized to do so or the new-vehicle warranty will be put in jeopardy. All costs for modifications are solely the responsibility of the owners.
The costs associated with modifications can be high, especially if they involve improving the performance of such things as bumpers. Remember, Canada has a tougher bumper standard than the United States.
Also, U.S. vehicles have speedometers and odometers in the English system or in miles. It is possible to change the instruments to reflect Canada's metric system, but this can be costly and might cause confusion if a warranty claim is made at a later date.
3. Safety recalls
Owner/importers need to be sure all safety recall notices have been dealt with before importing the vehicle.
4. Duty and taxes
The Canada Border Services Agency provides details on any additional duty and taxes, above and beyond the standard $195 fee, plus GST, required when importing any vehicle.
5. Documents
Importers/owners must be sure to have all the right documentation: title, registration, sales receipt, statement of compliance label and recall clearance letter and any other required documentation.
6. Provincial rules
Some provinces have requirements for importing a vehicle and those must also be met.
7. Insurance
Imported vehicles must be insured.
8. Clearing customs
Importer/owners must notify U.S. Customs 72 hours in advance of their intent to export a vehicle to Canada.
It is worth noting that more than one analyst has found that most vehicles priced at less than $30,000 in Canada are not available in the United States at a great savings if any at all — or at least the savings are not great enough to justify the time, effort and cost of importing.
Beware flood-damaged vehicles
A number of vehicles sold in the United States may have been damaged by flooding along the U.S. Gulf Coast. Canadians are allowed to import flood-damaged vehicles, but these vehicles will be branded as "salvage" by the Registrar of Imported Vehicles.
However, at the provincial level these vehicles may be deemed "Nonrepairable" and thus can only be used as scrap or for parts.

Look at all the factors


JEREMY CATO
From Thursday's Globe and Mail
November 28, 2007 at 4:01 PM EST



Non-cash buyers should ask themselves: Is the cost of financing a U.S. import more or less than the cost of financing (or leasing) in Canada?
Most manufacturers and distributors in Canada now are offering attractive financing and leasing rates not available in the U.S.
In addition, vehicles bought in the U.S. and imported to Canada are not eligible for the federal government's ecoAuto rebate program, which provides rebates to Canadians of up to $2,000 on selected vehicles.
Also, vehicles imported from the U.S. are not eligible for provincial rebates valued at as much as $3,000 in certain provinces on gasoline-electric hybrids.
With more Canadians shopping in the United States to take advantage of the lower prices, border lineups are becoming more common, but there’s a lot more red tape involved in bringing a car to Canada. (CHUCK STOODY/THE CANADIAN PRESS)


Those considering a U.S. import should also be sure that advertised prices in the U.S. are available to Canadian buyers. That is, Canadians may not qualify for rebates and discounts that are advertised and included in U.S. dealer pricing.
Another value issue: Free maintenance packages on U.S. models typically will not be honoured in Canada even in cases where the basic warranty is honoured. This includes the free roadside assistance included in virtually all Canadian new-vehicle warranties.
WHAT IT COSTS
There are costs associated with importing a vehicle.
These are estimates only and actual costs may vary, but owner/importers as a general rule are looking at the following costs:

• Shipping and transportation: $500-$1,500
• Customs brokerage fees: $200-$500
• Import duties: 6.1 per cent for vehicles built outside of North America
• Federal air conditioning excise taxes and other taxes: $100-$500
• Federal Green Levy and excise taxes on vehicles with poor fuel economy: $1000-$4,000
• Miscellaneous other fees and costs: $200-$500

AT THE BORDER

• U.S. Customs requires importers to present the vehicle at the time of export.
• U.S. Customs recommends that you contact the port of crossing directly to determine exact documentation requirements and hours of operation.
• Produce title documents, registration and sales receipts.
• The Vehicle Import Form — Form 1 — must be completed and this requires a Canadian mailing address. This form must be kept in the vehicle until it is licensed.
• The Canada Border Services Agency will check your vehicle against Transport Canada's List of Vehicles Admissible from the United States. They will also verify the public VIN and manufacturer's statement of compliance label on the vehicle to make sure they match.
• Canada Border Services Agency will collect your nonrefundable Registrar of Imported Vehicles' fee of $195.00 plus GST (in all provinces except Quebec where it is $195.00 plus GST and QST).
• Payment of fees and receipt of the Vehicle Import Form — Form 1 does not warrant that your vehicle is capable of being brought into conformity with all applicable federal and provincial or territorial laws.
• The Registrar of Imported Vehicles will not issue a federal inspection form or any specific modification information for a vehicle with an unpaid file.

Source: Registrar of Imported Vehicles

Interesting Article, Thanks for posting it.


By the way, a friend of mine bought an Acura MDX and a Mazda 3 from the states. Today he received the letter from RIV about the modifications that should be done on the car and in the letter it is specified that "no recall clearance is required for this vehicle". Do you guys know if they stopped asking for these clearance letters or do they ask for them on specific cars like the X5?

-Federal Green Levy and excise taxes on vehicles with poor fuel economy: $1000-$4,000


Whoa, that one looks scary if i know my BMW right, :rolleyes:

I just took my imported X5 to the dealer in Ottawa, Ontario. He is claiming that BMW Canada will not issue the "recall Clearance letter" until the cluster is changed, because they need to change the cluster in order to get the DRL active. I told them that all they have to do is connect it to the computer and activate them because they are currently set on "not active". The response that they gave me is that BMW Canada wants to make sure that the DRL cannot be deactivated in the future, therefore a new cluster is needed. He said that they cannot issue me this letter until the cluster is changed. Did any of you guys experience this problem?