The good-news case, with a catch
Bought from a US seller, but the car wasn’t made there
Here’s the relief: the 25% surtax is on vehicles that originate in the United States, and origin is about where the car was built — not where you bought it. A Japanese- or German-built car bought from a US dealer isn’t caught by it. The catch: you have to prove that to CBSA, and the rest of the import costs still apply.
The proof burden is on you
CBSA treats a vehicle marked “Made in USA” — or unmarked with no contrary evidence — as US-origin. To avoid the surtax on a non-US-made car, bring documentation of the country of manufacture. Without it, expect the 25% to be applied.
What you still pay
- Customs duty — 6.1% (the MFN rate) on a vehicle not entitled to CUSMA preferential treatment. A car made outside North America generally won’t qualify for CUSMA, so the 6.1% typically applies.
- GST — 5% at the border, on the value for duty plus any duty.
- Air-conditioning excise tax — $100, if the vehicle has A/C.
- Green levy if the vehicle is fuel-inefficient — $1,000 to $4,000 by weighted fuel consumption (pickups, 10+ passenger vans, ambulances and hearses are excluded).
- RIV fee — $325.00 plus tax if the vehicle goes through the RIV program.
The tiered green-levy table and a worked example are on the cost breakdown page.
What to do now
- Gather origin proof — manufacturer documentation and country-of-manufacture records — before the vehicle reaches the border.
- Budget for 6.1% duty, 5% GST, the excise taxes, and the RIV fee, since the surtax being off the table doesn’t make it free.
- Confirm the current rates with CBSA and the CRA — they change.
Common Questions
My car was built in Japan but I bought it in the US. Do I owe the 25% surtax?
No — the surtax is on vehicles that originate in the United States, and origin is about where the car was made, not where it was sold. But the proof burden is on you: a vehicle marked “Made in USA,” or unmarked with no contrary evidence, is treated by CBSA as US-origin, so bring documentation of the country of manufacture.
So what do I still have to pay?
Customs duty at 6.1% (the MFN rate) if the vehicle isn’t entitled to CUSMA treatment — which a car made outside North America generally isn’t — plus 5% GST at the border, a $100 air-conditioning excise tax if it has A/C, the green levy if it’s fuel-inefficient, and the $325 RIV program fee. Your province collects its sales tax at registration.
How do I prove where it was made?
CBSA puts the burden on the importer. Keep the manufacturer’s documentation and anything showing country of manufacture; the VIN and build records establish origin. If you can’t substantiate a non-US origin, expect it to be treated as US-origin and surtaxed.
Where to go from here
Guidepost is not a law firm or customs broker; this is general information, not advice. Rates change — confirm current amounts with CBSA and the CRA. Full disclaimer. Last updated: July 2026.