REVscene - Vancouver Automotive Forum

CaptFiero · 01-07-2013, 10:14 PM

So a lot of you know who I am, I built my V8 Fiero and documented it here. Well that was several years ago, and now I have 2 kids and a lot less time on my hands. Don't let me scare anyone I am not letting go of any of my Fiero's. My wife and I agreed 2 kids is our limit as with 2 kids we can put one in each Fiero and still take 2 Fiero's to car shows.

Now to the root of this, I got a little crazy with the Nitrous night in my V8 Fiero and popped a head gasket. Now I have I have more money and considerably less time that I did 6+ years ago, so I started looking into the few people that had experience working on V8 Fiero's and of the 4 in the lower mainland, 2 had moved on from auto mechanics completely the 3rd had just lost his job at the shop he was in, and could not do it at home and I am the 4th person. I know I could have talked to shops around the lower mainland, but frankly I knew that this would not be a simple fix. As the motor is an aluminum block V8 and I got it hot enough that it started to seize up, so it was going to need an entire overhaul. Which is a ton of work for someone that knows how to work on these cars, let alone someone that doesn't and will take twice as long with twice the shop labor bill.

I found a shop in Washington that specialized in Race Prepped Fiero's. They agreed to do the work to the car. I trailered it down in October and they are driving up to Customs tomorrow night for me to pick up.

Now my question is, am I going to have to pay duty on the labor. I am not technically bringing anything different into Canada. I took down one complete car and am brining back one complete car.

The only things of major difference was they removed my stock intake and installed a prototype intake for testing, which is drastically different than what I had before.

When I go down to get it, I'll only be down for maybe 30mins to meet them and come back. I am not paying anything while I am down there as payment was made partially when I dropped it off and balance was paid via credit card in late November. He is actually giving me a $400 refund due to the delays in getting it done.

I mean if some girl goes and gets a Wax job done, are they going to charge her duty on it, or include it in her total amount allowed when she comes back to Canada.

If I get dinged for this, I think its only reasonable that all the guys flying to Vegas and getting High Priced Hookers, we should take a look at those service / labor receipts. Granted my car repairs might be slightly more than the cost of a good BJ, but a service is a service. Come to Think of it, I think I actually enjoy "Hittin That" button in my car more than some BJ's. But that's a whole different story.

So what do you think, am I going to get charged duty on the repairs. I am going to be totally honest with the boarder guys / gals, and say that I am bringing my car back after repairs. The shop is writing me up a receipt to show to the customs people as well. Because the intake is prototype, I am only being charged for the time to build and install, and not for the actual materials that went into it. Which even I'll admit may be a grey area.

Good news is I should have an extra 100hp with the intake/cam/ecm programing they did when they overhauled the drivetrain. Which is totally cool because this motor will have as much power on motor alone as my old one did with the nitrous. Which Means Dang I can't wait to "Hit It" again. This time I'll use protection in the form of an MSD Nitrous Retard feature in the new ignition box.

Well what do ya think.

Splinter · 01-07-2013, 10:30 PM

Every time I've gone down to the states in my Impreza they've asked me on my way back if I had any work done on the car

The answer has always been no but I can't imagine they're asking because they're interested.

bcrdukes · 01-07-2013, 10:34 PM

According to CBSA:

Source: CBSA: I Declare

Quote:

Repairs or alterations to your vehicle/vessel/aircraft
If you intend to have repairs or alterations made to your vehicle/vessel/aircraft outside Canada, check with
the CBSA for information before you leave. Under customs legislation, the CBSA can no longer consider
your vehicle, vessel or aircraft to be Canadian-made if you increase its value, improve its condition or have
it modified outside Canada. As a result, you may have to pay duty and the goods and services tax (GST) or
harmonized sales tax (HST) on the entire value of the vehicle/vessel/aircraft when you bring it back.5
No duty will apply to the value of the repairs or alterations made to your vehicle/vessel/aircraft in the
United States, Mexico, Chile, Costa Rica, Israel or another Canada-Israel Free Trade Agreement beneficiary
when it is re-imported into Canada; however, the GST/HST will apply.
Emergency repairs can be made to your vehicle/vessel/aircraft while you are travelling outside the country
to ensure your safe return to Canada. However, to be eligible for this special provision, be sure to declare the
value of all repairs and replacement parts when you return to Canada with the vehicle.
Transport Canada also has requirements for vehicles that are extensively modified. For more information,
contact Transport Canada’s Registrar of Imported Vehicles at 1-888-848-8240.

In actuality, I strongly believe that your outcome will be determined on a case by case basis as per the CBSA officer.

Volvo-brickster · 01-07-2013, 10:37 PM

D8-2-26 GOODS RE-ENTERED AFTER REPAIR OR ALTERATION IN THE US

Coles notes:

If it was repairs only and didn't add value to the item no duties.

If repairs added value to the item , yes duties.

But onus is on you to prove to CBSA your car didnt increase in value.

edit -^^^ he beat me

CaptFiero · 01-07-2013, 11:06 PM

Thank You, All of you.

When we took the car down on the trailer, I did declare to the boarder that the car was going down for repairs. Granted that was to the American boarder people. Hmm, I just thought of something, do the American Boarder people talk to the Canadian Boarder people? I wonder if their computers even have the ability to view what you told the guards on your trip down / back.

I never notified the Canadian side that the car was going down for repairs. I wonder if that is going to cause a whole new set of problems.

As to the increase in value. That's going to be tricky. Is it worth more than it did before it popped the motor maybe a little. However the condition it was when I crossed into the US, with it on a trailer with a bad motor, vs what it is worth when I drive it back into Canada with a good motor, I'll have to say yes it is now worth more. A Fiero with a blown motor has very little value. I have turned them down for free just because the cost of towing was more than the car was worth. However a running V8 Fiero is worth considerably more.

Oh Crap this may totally get me so screwed up that I am on the mercy of the guard I meet. If I read that to the letter of the law they cold be charging me taxes/duty on anywhere up to full price on my entire car. Which even I don't know what market value is as the car is so modded there are no other cars to compare it to.

dared3vil0 · 01-07-2013, 11:27 PM

Quote:

Originally Posted by CaptFiero

Thank You, All of you.

When we took the car down on the trailer, I did declare to the boarder that the car was going down for repairs. Granted that was to the American boarder people. Hmm, I just thought of something, do the American Boarder people talk to the Canadian Boarder people? I wonder if their computers even have the ability to view what you told the guards on your trip down / back.

I never notified the Canadian side that the car was going down for repairs. I wonder if that is going to cause a whole new set of problems.

As to the increase in value. That's going to be tricky. Is it worth more than it did before it popped the motor maybe a little. However the condition it was when I crossed into the US, with it on a trailer with a bad motor, vs what it is worth when I drive it back into Canada with a good motor, I'll have to say yes it is now worth more. A Fiero with a blown motor has very little value. I have turned them down for free just because the cost of towing was more than the car was worth. However a running V8 Fiero is worth considerably more.

Oh Crap this may totally get me so screwed up that I am on the mercy of the guard I meet. If I read that to the letter of the law they cold be charging me taxes/duty on anywhere up to full price on my entire car. Which even I don't know what market value is as the car is so modded there are no other cars to compare it to.

I would be curious when they ask the total value of goods you're bringing up, What you have to say...

bcrdukes · 01-07-2013, 11:33 PM

You should, at the very least, be prepared to deal with paying duty/HST on the car. If the dollar value of repairs aren't significant enough, they may just wave you through. Again, this is solely up to the discretion of the CBSA officer so please ensure you have all your paperwork/proof readily available. My personal suggestion is to call the shop who performed the work on your car and to give them a heads up so they can vouche for you if and when CBSA decides to check. They did that once when I imported my 1979 Yamaha SR500 and despite having a copy of the invoice and the wire transfer, they still called the shop I bought the bike from to verify the purchase. Good luck!

inv4zn · 01-08-2013, 08:26 AM

I'm not sure if this is helpful, but when I got tires installed in the US, I declared them and got sent in to pay taxes.

I was charged for the entire amount I paid (incl. labour + fees), and not just the tires.

I asked the border agent if duty and taxes apply to services as well and not just goods, and she told me yes.

I don't think they are able to bend rules just to make things easier for them, so it's a most likely Yes.

lowside67 · 01-08-2013, 08:56 AM

You are likely to pay tax and duty when the labour of the service performed in the US affects the value, so something like machinework, probably so. An example of a service performed in the US that does NOT affect its value is shipping - if you had your car shipped from WA to CA and back to WA, it is still worth the same so that should not be factored into the bill.

Mark

SoulCrusher · 01-08-2013, 11:53 AM

In your case the work is subjected to both duties and taxes.

If you were forced to make some auto repairs then you would be exempt. ie. You were driving to Seattle and got a flat tire and replaced it.
Posted via RS Mobile

SoulCrusher · 01-08-2013, 11:56 AM

You should consider going to the CBSA office before you go down and discuss your situation with an officer. Make sure you have all your documents with you showing the work completed and values.
Posted via RS Mobile

Super Dipper · 01-09-2013, 02:24 PM

My personal experience: took my car down on a trailer to have a shop in Washington tune the ecu after i installed the blower. When I came back through the border, cbsa guards brought me inside, I showed them the parts and labour bill. I had to pay taxes on the parts and the other shopping I did while I was down there but they did not tax m on the labour charge of 8xx dollars. I was told that Canada customs doesn't tax labour or service charges as nothing physically is being brought back into the country.

Not sure of the legitimacy of that, but I thought I'd pass it along. That was back in 2009, so things may have changed now.