US Laws and Standards When Importing a Motor Vehicle to the US

By US law, when importing a vehicle, you must comply with:

• 1966’s Motor-Vehicle Safety Act’s standards of safety, modified in 1988 in the Imported Safety Compliance Act;
• 1968’s Clean Air Act standards of air pollution control, modified in 1977 and 1990;
• 1972’s Cost Savings and Motor-Vehicle Information Act’s bumper standards, implemented in 1978;

This article provides crucial information for U.S. citizens or foreign nationals who want to import into the country. It contains the requirements of the United States Customs and Border Protection and those of different agencies whose rules and regulations we abide by. Since the Department of Transportation and the Environmental Protection Agency’s regulations often change, you should contact these organizations before importing.

Before Importing

As the owner, you must prepare in advance for moving. Contact your carrier/shipper to confirm the arrival date so you can arrange for the CBP to process it. If you do not arrange for an overseas freight forwarder to haul it to a more convenient CBP port, it is cleared at the initial entry port.

It is forbidden by law for CBP officers to make entries or become agents for an importer. However, you can hire a commercial broker for your entry.

Paper Work

The following paperwork is required for your Customs and Border Protection clearance:

• The authentic bill of landing from your carrier or shipper,
• The foreign registration,
• The bill of sale,
• All remaining documents related to it.

Furthermore, you must declare the safety and emissions provisions by completing a DOT HS-7 and an EPA 3520-1 form. If your automobile meets the emission standards of the US, it will attest to this with an English-written label from the manufacturer on its engine. If it doesn’t have this label, you may be required to provide eligibility proof by the port inspector, as mentioned in Form 3520-1.

If it does not meet the United States’ emission standards and is not eligible for an exclusion or exemption, you must import it through an ICI (independent commercial importer). EPA will only permit the release of your auto after you complete the ICI work. However, remember that ICI fees are generally high, and they cannot modify or import all of one.

Undercarriage Cleaning

The Department of Agriculture requires you to clean the undercarriage of your car of foreign soil to prevent the importation of pests. Before shipment, it is recommended that you clean or steam spray it thoroughly.

Shipping Personal Belongings Inside Your Vehicle

We do not recommend carrying personal belongings inside it if you are about to import. They may be stolen while your car is in transit or on the docks. Also, it may cause your automobile to be rejected by some carriers.

You must declare its contents to the CBP, or you risk a fine and even having your car and belongings seized.

Duty Entry

Motor vehicles made in foreign countries are susceptible to the following rates upon their importation into the United States:

• 2.5% for Automobiles,
• 25% for Trucks,
• Free or 2.4% for Motorcycles.

These dutiable rates are dependent on the payable or paid price. Many Canadian autos do not require duty rates.

If you are a returning resident of the United States, you and your family members may ask for a $800 exemption by the CBP towards your car’s value if:

1. You imported it for personal use,
2. You bring it with you upon your return,
3. You bought it during the trip you made outside the U.S.

CBP considers a returning resident of the U.S. who is returning to the country from studying abroad, working, or traveling. After applying for the exemption, you can expect a 3% duty rate on the next $1000 of the value. The standard duty rate is applied to the rest of the amount.

Duty-Free Vehicle Import: Who Qualifies?

If you're a U.S. government employee returning from overseas duty or a nonresident visiting the U.S. temporarily you may qualify for duty-free car import privileges. This applies when the vehicle was purchased abroad, used during your assignment, and returned as part of your return.

For instance, military or civilian personnel returning after 140+ days abroad may bring a vehicle into the U.S. duty-free, as long as it was acquired and used overseas. However, if you sell the car within a year of import, you must pay the applicable duties at a CBP (Customs and Border Protection) office before completing the sale.

Nonresidents can also import a duty-free personal vehicle for up to one year, provided they bring it upon arrival. The car must comply with U.S. safety and emissions standards and cannot be sold while in the country. Extensions on this one-year limit are not allowed under US car import laws.

Temporary Imports for Special Use

If you're importing a car to the U.S. for a specific purpose like racing or exhibitions you may qualify for a temporary duty exemption. These imports require written EPA approval and are limited to non-road-use vehicles like race cars.

A CBP officer may allow entry without a bond for up to 90 days for non-commercial contests or exhibitions, provided the vehicle clearly isn’t intended for street use. If the vehicle isn’t exported or formally bonded within that window, it may be subject to forfeiture.

You must also obtain written approval from the DOT. You may import it temporarily for racing, testing, or demonstration purposes, while you can import it permanently for display and show purposes. The DOT must provide you with written approval to export into the United States. You can find more information on importation requirements on DOT’s website.

Even if it's imported for a display or show, it must respect every emission requirement of the U.S.. Usually, it must be imported with an ICI’s help, which the EPA authorizes for testing and modification. Until the ICI completes its work, the EPA will not release it.

Standards regarding Bumper, Safety, and Prevention of Theft

An HS-7 form must be filed when you import to confirm it meets DOT standards. In general, autos older than 25 years, to be imported into the US permanently, must comply with every FMVSS (Federal Motor Safety Standards). The bumper standard must be respected and built after the 1st of September 1978. You can inquire to the DOT import hotline at (202) 366-5291.

When it conforms to these standards, the initial manufacturer places a certification label on the driver's side door area. When buying a U.S. standards-certified one from another country, you may speed up this process by showing the CBP a contract confirming this fact when importing.

If your car does not meet these standards, you must import it as a nonconforming vehicle. Importers of nonconforming ones must make the appropriate modifications with the help of a registered importer from the DOT and have them certify they meet all FMVSS. As the importer, you must place a DOT bond of 1,5 times your car’s duty value along with the CBP bond. Also, you must make copies of the RI contract and the DOT bond and attach them to your HS-7 form.

Before modifying by the RI, you must first determine if such modifications are possible. You must use a petition process if it has yet to be assessed. If it is not similar to others sold inside U.S. borders, this may become a costly and complex process.

Federal Tax Requirements for Imported Vehicles

When importing a car to the U.S., you may be subject to a federal gas guzzler tax under Section 4064 of the Internal Revenue Code. This applies to certain passenger vehicles, whether for personal or commercial use, that fail to meet fuel economy standards.

The tax is based on the vehicle’s official miles-per-gallon rating as determined by the EPA, which may differ from the manufacturer’s rating. You can avoid this charge if your car gets at least 22.5 mpg (combined city and highway). For models without an EPA rating, fuel economy must be independently assessed.

U.S. Emission Standards for Imported Vehicles

Vehicles imported into the U.S. must meet strict federal emissions standards. These rules apply to:

• Gasoline cars built after December 31, 1967
• Diesel cars and light trucks built after December 31, 1974
• Motorcycles over 49cc built after December 31, 1977
• Heavy-duty engines manufactured after 1969

The manufacturer must certify that the vehicle complies with EPA regulations. If not, the car is considered nonconforming and must be tested and modified by a registered Independent Commercial Importer (ICI). The EPA maintains a list of approved ICIs that can help bring your vehicle into compliance.

It’s important to note that as of July 1, 1988, the EPA no longer offers a one-time exemption for cars over five years old. Also, using an uncertified ICI—or one that refuses responsibility for the vehicle can result in denial of entry.

Lastly, remember that state-level emissions requirements may differ from federal standards. Always check with your state’s DMV before importing a vehicle to ensure proper registration and compliance. This is especially important when importing cars from Canada or Mexico into the U.S., as regulations may vary.

Caution

The EPA and the DOT support the idea that the costs of modifying to comply may surpass even the shipping price. We strongly advise you to research these modifications and prohibitions before purchasing from abroad.

Importing a Former Auto

You may avoid duty taxes when returning a private use, non-commercial vehicle into the United States by contacting the CBP with proof of its previous registration and ownership in the U.S. You can use as proof a U.S. dealer’s bill of sale for your automobile or registration card issued by the state. Any accessories or repairs done abroad may incur duty and should be declared.

There are countries where you can only buy unleaded fuel. In such cases, the oxygen sensor and the catalyst must be removed when returning to the United States. To cut down on expenses, you can obtain the EPA’s approval to remove these parts before shipping the car. You may contact the EPA at (202) 564-2418 for such approvals. The oxygen sensor and catalyst must be reinstalled when returning the automobile to the United States. However, this allows you to reenter your car without a bong, but only if you agree to reinstall the parts.

Hauling Personal or Commercial Goods with Conveyances

To deliver commercial goods in a private conveyance, you may have to pay duty and buy a decal for your user fee. You do not have to buy a decal to move personal goods, though a dutiable payment may still be necessary.

You may use rental automobiles to deliver private goods without buying a decal if you do not have a paid driver operating the car.

Exceptions

Some automobiles may not be sold in the United States, may need DOT and EPA declarations, yet need not conform to federal safety and emission standards. These are:

1. Personal use motorcars imported by foreigners for no more than a year. There are no extensions or exceptions on the day of exportation.
2. Motor vehicles of diplomats, armed forces, and other individuals from another country who accompany those who’ve been offered free entry by the State.
3. Automobiles that are imported for competition, demonstration, or testing purposes, if they are not driven or licensed to be driven on public roads. Exceptions may be made if the test requires the auto to be driven on public highways or streets. Those responsible for these must submit the DOT HS-7 and the EPA 3520-1 forms to the CBP at the time of entry. One must also obtain the necessary written approvals, and these forms are to be handed over to the CBP. If your automobile has been refused before the approval, returning it may be costly, and the owner will suffer the costs.

Permits and Plates

All imported ones must have an IRM (international registration marker). An international driving permit can be handy in such situations. Visit a local club or a global federation for such documents.

Residents of the United States should speak to their state’s DMV (Department of Motor Vehicles) regarding the paperwork required from the CBP and acquiring provisional license plates.

Suppose you are a national of a country from South or Central America that ratified the 1943 Inter-American Convention. In that case, you can drive in the United States without a driver’s permit or license plates issued by the U.S. for up to one year or for as long as your documents allow it. This is permitted only if the driver has an international driving permit and the car carries the international registration card or marker.

Due to prior agreements between the United States, Canada, and Mexico, you can drive a motorcycle in the U.S. without a U.S. permit or license plate. Motorcycle drivers from countries other than the above must take an examination for a United States driving permit. Foreign license tags may be used by foreigners with jobs in the United States, from where they entered to their destination.