Receiving a Vehicle or Motorcycle as a Gift From Family in Canada

Receiving a vehicle as a gift from family in Canada is a generous gesture, but bringing it home to the USA takes more than a handshake and a set of keys. Even though you didn’t pay for it, US Customs still assigns the car or motorcycle a value, checks that it meets US standards, and may charge duty. A customs bond is also required. US Canada Auto Transport specializes in cross-border gift shipments: we pick the vehicle up from your family in Canada, handle the paperwork and bond, and deliver it to your door. Here’s what you need to know.

How importing a gifted vehicle from Canada works

1. Your family member signs the vehicle over to you in Canada and gives you a gift letter.
2. You get the vehicle’s book value for customs.
3. You check US compliance: the 25-year rule, or compliance labels or a manufacturer’s letter for newer vehicles.
4. We arrange the Single Entry Bond and file the US customs entry.
5. We pick the vehicle up from your family’s home in Canada and ship it across the border.
6. You pay any duty, and the vehicle is delivered to your address in the US.

Step 1: Transfer ownership in Canada

The person giving the vehicle needs to sign it over to you under their province’s rules. In practice, that means:

• Signing the registration (ownership) over to you
• Writing a signed gift letter that names the giver and receiver, describes the vehicle and VIN, and states that no money was paid. The gift letter takes the place of a bill of sale at US Customs.
• Paying off any loan, or getting a letter from the lender releasing the lien
• Keeping their licence plates, which stay with the owner in most provinces

Some provinces have their own family-gift paperwork. Ontario, for example, uses a sworn statement for a family gift of a used vehicle, which exempts close family members from retail sales tax if the car is registered there. That tax exemption only matters if the car stays in Canada. For a vehicle coming to the US, what counts is a clean transfer and a clear paper trail.

Step 2: Determine the vehicle’s value

To establish the value, use a recognized valuation source. You can fill in the questionnaire on Kelley Blue Book (KBB) online or use the NADA guides. That figure becomes the declared value for customs, and the basis for any duty. Having it documented before shipping helps the entry move smoothly.

Step 3: Check US compliance and the 25-year rule

Age is one of the most important factors in a cross-border gift:

• 25 years or older: the vehicle is exempt from US Department of Transportation (DOT) safety standards and Environmental Protection Agency (EPA) emissions rules. (EPA’s exemption actually starts at 21 years in original configuration.) Classic and vintage family cars are much simpler to import.
• Under 25 years old: the vehicle must meet US DOT and EPA standards. It may already have US compliance labels, or you’ll need a letter of compliance from the manufacturer. See our compliance letter guide.

For a newer vehicle, check for compliance labels early so you’re not scrambling for a manufacturer’s letter at the last minute.

Step 4: Duty, fees and the customs bond

Where the vehicle was built, and how old it is, decides what you pay:

• Under 25 years old: most vehicles face the 25% Section 232 tariff. For a USMCA-qualifying vehicle built in Canada or Mexico, it applies only to the non-US content.
• 25 years or older: excluded from Section 232. North American-built vehicles that qualify under USMCA pay no duty and no Merchandise Processing Fee (MPF). Vehicles built outside North America pay the regular 2.5% duty plus the MPF, and some origin countries also face a Section 301 tariff.
• Motorcycles: duty rules are similar, but rates differ. Confirm before shipping.

Check the first character of the VIN to see where it was built, and see our tariffs page for current rates.

The Single Entry Bond

In addition to any duty, a Single Entry Bond is generally required for vehicles imported into the USA, including gifts. It’s a customs requirement that we arrange on your behalf. We handle the bond paperwork and collect any applicable fees as part of the shipment.

Documents you’ll need

• The Canadian registration, signed over to you
• A signed gift letter (in place of a bill of sale)
• A lien release, if the vehicle was financed
• Your ID
• Proof of value (KBB or NADA)
• EPA Form 3520-1 and DOT Form HS-7, which we prepare
• A manufacturer’s letter of compliance, if the vehicle is under 25 years old and has no US labels

See our US-Canada customs documents guide for more.

Shipping your gifted vehicle from Canada to the US

You don’t need to travel to Canada. We pick the car or motorcycle up from your family’s home, ship it across the border, and deliver it to your address, whether that’s in Florida, California or anywhere else in the US.

• Open or enclosed: open transport suits most cars; enclosed is best for classics and motorcycles.
• Border crossing: usually Blaine from BC, Sweetgrass from Alberta, or Detroit, Port Huron or Buffalo from Ontario.
• Transit: typically 3 to 10 days, depending on distance.
• Preparation: ask your family member to remove all personal belongings and leave about a quarter tank of fuel.

For route details, see shipping a car from Ontario to the USA and British Columbia to the USA. For older family cars, see our classic car shipping service. The full import process is in how to import a car from Canada to the US.

How we handle gift shipments

A gifted vehicle involves valuation, compliance checks, possible duty and a customs bond, which is more to coordinate than a standard shipment. We specialize in cross-border gift imports and arrange the documents, the bond and the fee collection, so you don’t have to manage it yourself. Inherited the vehicle instead? Read our guide to inheriting a vehicle or motorcycle from family in Canada.

Frequently Asked Questions

Do I have to pay duty on a vehicle I received as a gift?

Possibly. Even though you didn’t pay for it, a gifted vehicle still has a value for US Customs. Whether duty applies depends on where it was built and how old it is. Vehicles under 25 years old usually face the 25% Section 232 tariff (on non-US content for USMCA vehicles), while older North American-built vehicles are generally duty-free. See our tariffs page.

Do I need a bill of sale for a gifted vehicle?

No. A signed gift letter from your family member replaces the bill of sale. It should name the giver and receiver, describe the vehicle and VIN, and state that no money changed hands.

How do I determine my gifted vehicle’s value for customs?

Use Kelley Blue Book (KBB) or the NADA guides to get the book value. That figure becomes the declared value for customs and the basis for any duty.

What if the gifted vehicle is over 25 years old?

Vehicles 25 years or older are exempt from US DOT safety standards and EPA emissions rules (EPA’s exemption starts at 21 years in original configuration), and they’re excluded from the Section 232 tariff. That makes older family cars much easier to import.

Is a customs bond required for a gifted vehicle?

Yes. A Single Entry Bond is generally required for vehicle imports into the USA, including gifts. We arrange it for you as part of the shipment.

Does my family member need to do anything in Canada?

Yes. They sign the vehicle over to you under their province’s rules, give you the registration and a gift letter, and clear any loan on the vehicle. Some provinces, like Ontario, have a family-gift form that also saves sales tax if the car stays in Canada.

Can a gifted motorcycle be shipped the same way?

Yes. Motorcycles follow the same import steps: valuation, the 25-year rule, compliance, duty, and the bond. We ship them secured on an enclosed or open carrier.

What if I inherited the vehicle instead?

The US import rules are the same, but the Canadian side is different because the car must be transferred out of an estate. See our guide to inheriting a vehicle from family in Canada.