Used vehicle import rules from Mexico and US

Summary#

This is SI/2020-14, an order that brings parts of the Economic Action Plan 2014 Act, No. 1 into force so related changes to the Motor Vehicle Safety Act take effect. The order was made on February 3, 2020 and fixes the day after it was made as the day those provisions come into force.

What it does#

• Brings into force specific provisions (including section 213, certain parts of section 217, and section 230) of the Economic Action Plan 2014 Act, No. 1 that amend the Motor Vehicle Safety Act.
• Allows certain used vehicles from Mexico (and, under some new rules, from the United States) to be imported into Canada even if they do not meet some of the Canadian vehicle requirements, provided they meet other regulatory conditions and are made compliant before provincial registration and certified by the Registrar of Imported Vehicles.
• Creates a new rule that, under conditions, lets vehicles from the United States or Mexico be imported and dismantled for parts; those vehicles cannot be registered in a province or territory.
• Replaces definitions for “national safety mark,” “standard” and “vehicle” in the Motor Vehicle Safety Act and repeals Schedule II of that Act.
• Amends related regulations at the same time so the law and rules line up.

Who's affected#

• Importers and dealers who bring used vehicles into Canada from Mexico and the United States.
• People who buy or plan to register used vehicles imported from those countries.
• Auto dismantlers, salvage yards and businesses that sell vehicle parts.
• The Registrar of Imported Vehicles, provincial and territorial vehicle registration authorities, and regulators such as Transport Canada.
• The broader automotive industry and organizations concerned with vehicle safety and public safety.

Why it matters#

• It reduces legal barriers to bringing certain used vehicles from Mexico and the United States into Canada. That can increase supply and choice in the used-vehicle market.
• Vehicles still must meet safety-related regulatory requirements and be certified before they can be registered in a province. So there remain safety checks and compliance steps.
• Allowing imports for dismantling could expand parts supply but also means some imported vehicles will never be road-legal in Canada.
• The change implements Canada’s trade obligations referenced in the background (for example under NAFTA, effective January 1, 2019) and aligns regulations with those obligations.