Leased vehicles

[Nnickol 0]

My wife and I have leased vehicles that I understand have to be purchased before moving to the U.S. How long must they have been purchased and owned to avoid paying an import duty? Thanks.

[h13rma 35]

I didn't think you could avoid the import tax on a car.

[Fabian&Rossy 120]

Customs and imports is a whole different game. You don't provide much details, so as a general rule I can tell you that autos are dutiable at 2.5% ad valorem, whether for sale or personal use. There are certain situations where free-duty applies: temporary import, military personnel, USC working overseas, etc., but nothing (I think) related to length of ownership. If your particular situation qualifies for a duty free entry, you might still need to pay other government and entry filing fees. Also, you will have a whole lot of compliance requirements (read other expenses) with EPA, DOT and USDA. The link below might help you get started in your research:

http://www.cbp.gov/xp/cgov/trade/basic_trade/importing_car.xml

Good luck!

[Nnickol 0]

Wait, so youre saying that i could have

Owned my vehicle for 10 years and id still have to pay duty? This is on an IR1 visa

[NikLR 13,227]

No. You're supposed to own it for a year before bringing it over. You also should have 10 years to bring your items.

[Ryan H 3,813]

Moved from IR-1/CR-1 Process & Procedures to General Immigration-Related Discussion.

[Fabian&Rossy 120]

No. You're supposed to own it for a year before bringing it over. You also should have 10 years to bring your items.

Hi NLR,

I see where that 1-year rule applies to household effects in the CFR but vehicles are not considered household effects. I did a bit more digging but I could not find that rule about vehicles. Please let me know if I missed something else, I'm sincerely curious now.

OP, I saw from your other posts that you will be coming from Canada. If your vehicles were manufactured in Canada (or US, or Mexico), then you could get a free-duty preference. I do not think your visa type has any relevance, except maybe when you or your spouse (if traveling with you) apply your allowable exemption against the value of the vehicles.

[NikLR 13,227]

Most likely we are getting a preference because of the cars being owned at least in Canada. You can easily import a Mazda which is often built in Japan, but Hyundai seems to be darn near impossible because they won't give you a compliance letter.

The 10 year rule is here:

https://help.cbp.gov/app/answers/detail/a_id/421

And here is the 1 year rule:

https://help.cbp.gov/app/answers/detail/a_id/351

However, when you FIRST move to the USA, no matter if you are CR1/IR1 or K1 you care considered at first entry to be a NON-RESIDENT. This is important to note.

https://help.cbp.gov/app/answers/detail/a_id/353

When I look at CBP.gov I think this link in relation to moving to the USA with a car

http://www.cbp.gov/xp/cgov/trade/basic_trade/importing_car.xml

I highlight this section:

Free Entry

• U.S. citizens employed abroad or government employees returning on TDY or voluntary leave may import a foreign-made car free of duty provided they enter the U.S. for a short visit, claim nonresident status, and export the vehicle when they leave.
• Military and civilian employees of the U.S. government returning at the end of an assignment to extended duty outside the CBP territory of the U.S. may include a conforming vehicle among their duty-free personal and household effects. The auto must have been purchased abroad and be in its owner’s possession prior to departure. Generally, extended duty is 140 days or more. Navy personnel serving aboard a U.S. naval vessel or a supporting naval vessel from its departure from the U.S. to its return after an intended overseas deployment of 120 days or more are entitled to the extended-duty exemption. Conforming vehicles imported under the duty-free exemption are dutiable if sold within one year of importation. Duty must be paid at the most convenient CBP office before the sale is completed. Conforming vehicles so imported may remain in the U.S. indefinitely once a formal entry is made for EPA purposes.
• Nonresidents may import a vehicle duty-free for personal use up to (1) one year if the vehicle is imported in conjunction with the owner’s arrival. Vehicles imported under this provision that do not conform to U.S. safety and emission standards must be exported within one year and may not be sold in the U.S. There is no exemption or extension of the export requirements.

and also highlight this:

As a returning U.S. resident, you may apply your $800 CBP exemption and those of accompanying family members toward the value of the vehicle if it:

Accompanies you on your return;
Is imported for personal use;
Was acquired during the journey from which you are returning.
For CBP purposes, a returning U.S. resident is one who is returning from travel, work, or study abroad.

After the exemption has been applied, a flat duty rate of 3% is applied toward the next $1,000 of the vehicle’s value. The remaining amount is dutiable at the regular duty rate.

So vehicles you only have a year in which to import, not 10. It's hard to understand if you need to own it for a year prior or not. You can always call or email the CBP and find out as well.