vehicle valuation?
 

How does customs calculate the value of a car being imported to canada?

When the purchase is made in U.S. dollars how do they calculate the duty and tax? do they convert to CDN funds and then tax you on that, same with paying the PST at the ministry on the purchase price.

Logically they should use the receipt from the bank draft showing the current exchange rate or is the value of the vehicle undetermined untill it is actually imported and use currency values at that time?

Lastly, the car should arrive next thursday or friday, do I need to pick up the original title from the car to get a ten day permit or will they issue the permit with a photocopy, I need to be able to drive the car home from the drop off location.

Thanks

Hi!
They calculate the value of the car based on the highest price they have. Either your bill of sale (Converted to CND funds) or the price in the Hebdo Book (black book) if the price you paid is too low. GST and the 6,1% import tax are charged at customs according the present value of currency and PST is charged in your province when plating the car (For Quebec anyway).

Can't answer the last question because I use a commercial X-plate to bring them in... I'd call the ministry to make sure about accepting a photocopy of the title...

Good luck !

Thank you, so getting a good exchange rate for the purchase is one thing, but if you happen to import the car on a day when the CDN dollar has risen even more you will actually pay tax on a higher value than you paid, providing they go by the purchase price and not their book of stated values.

Thanks again for your help!

Friendly Regards, David ;)