Can You Ship a Tesla from China to the USA?

What's in this article?

History of Tesla in China
Tesla GigaFactory Shanghai
Can you Ship a Tesla from China to the USA?
Cost of a Tesla in China v the USA
Can You Ship Any Cars From China?
Eligibility of car
Conforming vs nonconforming vehicles
Shipping costs and timeframe
Taxes and duties
Most popular cars exported from china yearly
Conclusion

Can You Ship a Tesla from China to the USA?

If you think about the electric vehicles industry, only one car brand springs to mind: Tesla.

A dream car for many, the global appetite to own a Tesla has made many American car enthusiasts look towards China and their enviable lower retail prices for electric vehicles.

But is it even possible to own a China-made Tesla in the US? Shipping any car - let alone a Tesla - across an ocean can seem like a daunting task.

So, can you ship a Tesla from China to the USA?

History of Tesla in China

Tesla began selling their vehicles in China in 2014 and since then has become the biggest auto market brand in electric vehicles within the country.

One of the major investments Tesla undertook in China was the construction of a state-of-the-art complex called the GigaFactory Shanghai.

This vast factory was created in a bid to meet the huge Chinese domestic demand for Tesla vehicles.

Tesla GigaFactory Shanghai

The Shanghai GigaFactory is the first wholly-owned Tesla factory outside of the United States. This massive facility serves as a production hub for Tesla’s vehicles in China, as well as a channel for exports.

The factory produces the China-made Model 3 vehicles, Model Y and the Made-in-China version of the Model S.

The GigaFactory is equipped with advanced manufacturing equipment and cutting-edge technologies, enabling production to churn out a colossal 500,000 cars annually.

This incredible production rate saw Tesla smash its monthly record in November of last year, as the Elon Musk-led company delivered over 100,000 China-made electric vehicles as well as passing the milestone of one-million cars manufactured in China.

Can you Ship a Tesla from China to the USA?

Unfortunately, no you can't. The shipping of a Tesla from China to the USA is prohibited due to import restrictions (a.k.a. politics) and safety regulations (a.k.a. politics).

This is due to regulations from the US Customs and Border Protection which restricts all electric China-made cars to be imported into the borders of the US.

The NHTSA also requires vehicles to contain a vehicle identification number, or VIN decoder, to identify the origin of the car and plant of manufacture. The U.S. Department of the Treasury also introduced The Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit to further strengthen the position of North American-made cars.

Sadly, any Tesla vehicles assembled in China would be ineligible.

Cost of a Tesla in China v the USA

The price gap between purchasing a Tesla in China is significantly less than purchasing one in the United States. This is due to the fact that China has a far more generous rebate for buyers in place for electric car purchases. Tesla starter prices also benefit from localized production and logistical savings through lower labor costs, import duties, local taxes and incentives.

In layman's terms, if you wanted to buy a China-made Model Y it would cost you in and around the region of $37,889. For that same vehicle in the US, your bank account would be looking at upwards of $54,990. Enviable, to say the least.

Not only are the cost savings associated with buying a Tesla in China desirable to the average American consumer, but so are the actual vehicles themselves. Eastern Tesla fans benefit from access to more advanced versions of Chinese-made vehicles.

This is because Tesla is able to make faster progress on new technologies and features due to its presence in China. This means Chinese consumers often get their hands on features earlier than those based in other countries, such as their counterparts in the USA.

It's important to remember that while the initial purchase price may seem to be cheaper in China, ongoing costs such as maintenance fees for Chinese consumers tend to be higher due to market demand.

Can You Ship Any Cars From China?

The silver lining is that yes, you can... however, it can be a costly endeavor.

The size and weight of the vehicle, shipping firm, and port of destination all have a role in determining the final cost.

Once you've grappled with the numbers, you must then contest the intimidating task of logistically shipping your car from China to the United States.

Here are some factors to consider before shipping your dream car from China to the US:

Eligibility of car

First and foremost, make sure your chosen car is actually eligible for importation.

A series of certification requirements must be met from complicated sounding legislation, but don't worry, it's easy once you've done your research.

Your car must adhere to the laws and requirements outlined in the complex sounding, but easily navigated, Motor Vehicle Safety Act of 1966 and the Vehicle Safety Compliance Act of 1988. Your car will also need to adhere to the bumper standards established by the Motor Vehicle Information and Cost Savings Act of 1972, and air pollution control standards established by the Clean Air Act of 1970.

Conforming vs. nonconforming vehicles

When it comes to conforming vs. nonconforming vehicles, it's important to understand the fundamentals of what makes one conform to regulations and another does not.

Generally speaking, if a car is designed for export and sale in the United States, or manufactured domestically for domestic sale, then it will tend to meet most standards set forth by FMVSS and EPA emissions standards.

In order for a nonconforming vehicle to be accepted into the U.S., and to meet each specification, adjustments must be made and certain modifications in order to reach compliance with each respective standard.

The process for verifying a conforming vehicle includes providing any pertinent documentation such as a manufacturer's label attesting the compliance with emissions standards, certification near the driver's door confirming safety, bumper and theft prevention regulations have been followed, and EPA form 3520-1 and DOT form HS-7 attesting compliance have also been submitted.

Some other documents like proof of origin from the shipper or carrier’s original bill of lading from a registered importer can also go a long way in providing assurance that all regulations are being met prior to entry into the U.S.

Shipping costs and timeframe

The cost of container shipping a compact car from China to the U.S. of America via the roll-on/roll-off technique typically averages around $3,000 USD and the time of importation takes roughly 20-40 days.

However, this could vary depending on many factors such as the type and model of your vehicle, location and nearest departure port, your chosen shipping method and services included.

Other costs such as storage charges, cleaning fees and taxes and duties may also apply at both ends and need to be taken into consideration when estimating the total expenses associated with shipping a car from China.

If you stay in the United States for longer than 12 months after your arrival date with a vehicle from China, duties must be paid to Customs and Border Patrol upon entry. These duties and tariffs can be avoided if you opt to stay for a shorter period in the country.

Taxes and duties

Importing a car to the United States can involve several taxes and duties. Duties are typically applied to foreign-made vehicles depending on their price paid or payable, in a bid to push consumers to American-made products.

In the midst of a trade war, the United States currently imposes a 27.5% tariff on imported passenger vehicles from China, which further increases the overall cost for any would-be Chinese car enthusiasts.

An ad valorem tax of 2.5% may also be applied by the U.S. Customs and Border Protection Agency, so make sure you're saving every dollar you can before you choose to import a car!

Conclusion

Although various car brands and models can be transported from China into the US, it's unfortunately not possible to ship a Chinese-manufactured Tesla.

Electric vehicles are especially tough to import into the United States as it seeks to strengthen its domestic economy and pushes its "Made in America" mantra.

All vehicles, no matter how rare or valuable, can be safely transported by A-1 Auto Transport. We're happy to help, so pick up the phone and call us for your free quote today.