Owning a classic car is a dream for many, but importing one from abroad can be daunting. The complexity of U.S. import regulations poses significant challenges, quickly turning excitement into anxiety and uncertainty.
Navigating the complicated import laws requires proper guidance to avoid costly mistakes and jeopardize the arrival of your dream car. Thankfully, this article provides a comprehensive step-by-step guide to importing classic cars into the U.S.
Key Takeaways
Understanding the 25-Year Rule and Its Impact on Classic Car Imports
- Understand the 25-Year Rule and its impact on classic car imports
- For a successful shipment, select the right shipping method and work with a Registered Importer
Understanding the 25-Year Rule and Its Impact on Classic Car Imports
The 25-Year Rule plays a significant role in importing a vehicle into the USA. The Imported Vehicle Safety Compliance Act stipulates that you can import non-US market classic cars as long as they are 25 years old or older. But why exactly?
Because the safety and emissions requirements enforced in Japan, Great Britain, and the EU differ from those enforced in the United States, cars manufactured internationally are unlikely to meet U.S. regulations. However, cars over 25 years old are assumed to be rarely-driven collector cars that aren’t daily drivers, so compliance with U.S. requirements is less critical.
Attempts to bring newer vehicles that are not compliant with U.S. regulations may lead to the rejection of your valued vehicle by US Customs and the possibility of the Feds seizing your car.
The National Traffic and Motor Vehicle Safety Act
In 1966, the U.S. Congress established the National Highway Traffic Safety Administration, which set national standards for motor vehicle safety and put policies like The National Traffic and Motor Vehicle Safety Act into practice.
Following the passing of The National Traffic and Motor Vehicle Safety Act, this act inadvertently caused shipping gray areas to form–i.e., the individual importation of newer, non-compliant cars (often called “gray market” cars).
To address this issue, the U.S. government created stricter import regulations in 1988, known as the Imported Vehicle Safety Compliance Act, which closed loopholes through which newer cars were imported into the United States.
Preparing for the Classic Car Import Process
Before starting to import motor vehicles, it’s essential to choose a shipping method, decide between a Registered Importer or Customs Broker, and acquaint yourself with US import laws and regulations. Proper preparation will help ensure a seamless import process and avoid potential complications.
Selecting a Shipping Method
When importing a classic car, several international vehicle shipping methods are available, including the following:
***Note: Regardless of how you ship your classic, be sure to arrange for comprehensive transit insurance, which covers repairs for damage to the vehicle during shipment and reimburses the vehicle’s value in the event of a total loss.
H4 Roll-on/Roll-off (RoRo) Shipping
Average cost: Cost is around $2000 from Japan to a West Coast US port.
Shipping time: 8-10 weeks
This is a popular and cost-effective option, where a vehicle is driven onto the cargo ship’s decks and secured in place during shipment. This method is ideal for a vehicle in running condition.
Container Shipping
Average cost: The cost for container shipping totals to around $3500 for a 20-foot container traveling from Japan to the West Coast.
Shipping time: 8-10 weeks
This method involves loading the vehicle into a shipping container, which provides added protection during transit. It is suitable for vehicles that are not in running condition or require extra security.
Air Freight
Average cost: The cost is around $15,000 to go from Tokyo to LAX
Shipping time: Length of the flight
This is the fastest and most expensive shipping method. Cars are transported by air to the destination country. This method is typically used for high-value vehicles on a time-sensitive schedule, like for a race or a show..
Working with a Registered Importer or Customs Broker
Working with a Customs Broker or Registered Importer is advisable when importing an older car into the U.S. These personnel manage documentation, coordinate with regulatory agencies, and provide expertise to simplify the complex process of lawfully and safely importing a foreign vehicle for U.S. roads.
For example, did you know that to safeguard against the importation of dangerous pests and invasive species, the U.S. Department of Agriculture requires that imported cars be free of foreign soil? Did you realize that if your imported vehicles don’t meet this standard, you’ll likely be charged a Harbor Maintenance Fee?
Utilizing the Show & Display Rule for Rare Classic Cars
Another option for importing rare classic cars is use the Show & Display rule to your advantage–an amendment to Federal Motor Vehicle Safety Standards that grants an exemption for historically or technologically significant vehicles.
Under this Rule, collectors can import certain rare classic cars without adhering to the 25-year Rule as long as they meet specific criteria.
Eligibility Criteria for Show & Display
To qualify for the Show & Display rule, a classic car must meet the following requirements:
- It must be rare and have limited production numbers, typically with no more than 500 units.
- It must have a limited annual mileage of no more than 2,500 miles.
- It must have historical or technological significance.
Under the Show & Display rule, “technological significance” refers to a vehicle’s unique or groundbreaking features, design, or engineering that represent a significant advancement in automotive technology at the time of its production.
By meeting these criteria, collectors can import classic cars and display their rare classic cars without the restrictions imposed by the 25-year Rule.
Obtaining the Necessary Documentation
To import a car that is 25 years old or older from overseas to the U.S., several key documents and forms are required:
- Bill of Lading: This document details the car’s shipment, including the shipper and receiver’s names and the car’s description.
- Foreign Registration: Proof of the car’s previous registration in another country.
- Sales Invoice: Documentation showing the purchase transaction of the car.
- Customs Entry Form (7501): Required by the U.S. Customs and Border Protection for all imports.
- Proof of Insurance: While not always required for the import process, it’s necessary to register and operate the vehicle in the U.S.
- Proof of Ownership: Such as a title or a certified copy of the title.
It’s essential to check the specific requirements during import, as regulations and requirements can change. Consulting with a Registered Importer or customs broker can also help ensure all paperwork is correct and completed, which is crucial to avoid delays or complications.
Insurance and Protection for Your Imported Classic Car
Insurance for your imported classic car is essential for its safety and peace of mind. While standard auto insurance policies may not provide adequate coverage for your classic car. Specialized insurance providers, however, cater to collectors and their unique needs–offering both Agreed Value Coverage and other specialized coverage.
You can learn more about the advantages of classic car insurance from any of these companies:
- Hagerty Classic Car Insurance
- Grundy Insurance
- American Collectors Insurance
- Classic Auto Insurance
- Heacock Classic Insurance.
When determining the insurance cost for an imported classic car, each company will consider factors such as your personal profile and driving record, vehicle age, value and safety features, and the availability of replacement parts. Appropriate insurance protects your investment and allows you to enjoy your classic car confidently.
Common Challenges and Tips for a Smooth Import Process
Importing a classic car from overseas involves challenges like adhering to U.S. import regulations, choosing the most suitable shipping method, and handling customs clearance.
Working with experienced professionals, such as Registered Importers and customs brokers, and ensuring all necessary documentation is ready can reduce or eliminate many of these challenges.
Additionally, securing comprehensive transit insurance and planning for financial obligations like import duties and taxes are critical steps in avoiding unexpected hurdles and ensuring a successful import.
How Much Does It Cost to Import a Car to the USA?
Here’s a general breakdown of the costs involved when importing a car, like a Toyota Corolla, from Japan to Los Angeles.
Shipping Costs
Shipping a car from Japan to Los Angeles varies but generally ranges from $2,500 to $4,000, depending on the shipping method and the specific shipping company.
Import Duties and Taxes
The U.S. imposes a duty on imported vehicles, typically 2.5% of the car’s value. This percentage applies to the purchase price or the car’s fair market value.
Customs Fees
There are additional customs clearance fees, including a merchandise processing fee of 0.3464% of the car’s value, plus a harbor maintenance fee.
Broker or Registered Importer Fees
Using a customs broker to assist with the import process can simplify things, but it will add to the cost. These fees can range from a few hundred to over a thousand dollars.
Given these variables, the total cost to import a similar-sized car from Japan to Los Angeles can range significantly. Obtaining specific quotes for shipping, customs fees, and any compliance modifications can take the guesswork of budgeting.
Summary
Though challenging, importing a classic car into the USA can be a fulfilling achievement for enthusiasts.
Understanding critical aspects like the 25-Year Rule, choosing the most suitable shipping method, and collaborating with a Registered Importer or Customs Broker are crucial for a successful import.
Once your treasured vehicle arrives, finding a secure and reliable storage solution is essential. Neighbor.com offers convenient and safe storage options for your classic car, ensuring it’s well-protected and ready for you to enjoy.
Whether adding to a collection or realizing a lifelong dream, following this guide will help make your classic car import process as smooth and enjoyable as possible.
Frequently Asked Questions
How Can Older Cars Be Imported to the USA?
Under the U.S. 25-year car import rule, you can import older classic cars from 1998 and earlier under the Imported Vehicle Safety Compliance Act (IVSCA) of 1988.
Why Does the US Have a 25-Year Car Import Rule?
The intent is to protect American drivers by preventing foreign-market vehicles that are not compliant with EPA emissions and NHTSA safety requirements and have not been through the federalization processes from entering the country. From the perspective of the NHTSA, there’s less concern for older classic cars–as they aren’t likely to be treated as daily drivers, meaning fewer encounters on the roads and less liability.
Can I Import a 1999 Car to the USA?
Unfortunately, your vehicle is under 25 years old, so it cannot be legally imported into the United States without making the necessary, expensive and extensive modifications to meet applicable DOT Federal Motor Vehicle Safety Standards.
What Are the Benefits of Working With a Registered Importer or Broker?
A Broker or Registered Importer will navigate legal and regulatory requirements and efficiently manage the logistics and costs associated with transportation and customs clearance.
Can I Pack Personal Belongings Into the Car I’m Importing?
For safety and compliance reasons, avoid using your car as a storage container for your personal belongings when shipping it. Personal items are at risk of theft, and many shippers won’t accept a car filled with them. Additionally, using a car to transport illegal narcotics can lead to severe penalties and vehicle seizure.
