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U.S. SELLERS & CANADIAN BUYERS OF U.S. VEHICLES BEWARE OF NEW U.S. AES REGULATIONS!! by canfirst
Started on: 05-15-2014 03:01 AM
Replies: 9 (651 views)
Last post by: canfirst on 05-19-2014 02:48 PM
canfirst
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Report this Post05-15-2014 03:01 AM Click Here to See the Profile for canfirstSend a Private Message to canfirstEdit/Delete MessageReply w/QuoteDirect Link to This Post
New U.S. regulations will make it very difficult or next to impossible for Canadian buyers to purchase U.S. vehicles privately, or for U.S. citizens to sell vehicles privately to Canadian buyers.

Effective April 5, the exporter (private vehicle seller) in the U.S. is required to file automated export system information. They have to report to the U.S. Census to tell them who they are, what they're sending, and who it's going to.

Since April 5, self-propelled vehicles exported from the U.S. to Canada are no longer exempt from AES filing. The filing must take place 72 hours prior to crossing the border.

A fine up to $10,000, under the U.S. Census Bureau foreign trade regulations, can be levied for failing to submit the AES information.

A potential problem is that to complete the AES filing, the U.S. seller is required to have a federal tax identification number called an EIN. Private individuals in the U.S. might not have an EIN number but, under the new rule, the American seller will have to get one to comply with the AES filing.

Please read following Winnipeg Free Press article for further details.
http://www.winnipegfreepres...eware-258064351.html

These regulations will really put a damper on private U.S. vehicle sales to Canada and substantially reduce cross border trade. Even worst is the fact that the majority of private American and Canadian citizens aren't even aware of these new regulations!

Private U.S. sellers can face hefty fines for non-compliance with these new regulations and Canadian buyers could end up being stuck at the Border with purchased vehicles which can be denied export to Canada, and have no recourse to return sold vehicles to the sellers.

[This message has been edited by canfirst (edited 05-15-2014).]

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racingfortheson
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Report this Post05-15-2014 05:25 AM Click Here to See the Profile for racingforthesonSend a Private Message to racingforthesonEdit/Delete MessageReply w/QuoteDirect Link to This Post
I have had businesses in the U.S. for years. All a EIN (Employer I.D. Number) really is, is a Tax payer ID number if you have employees. If you are DBA (Doing Business As) and don't have employees, then you don't need an EIN number you just use your SSI number. So I would think that is all you need.
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fierosound
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Report this Post05-15-2014 09:07 AM Click Here to See the Profile for fierosoundClick Here to visit fierosound's HomePageSend a Private Message to fierosoundEdit/Delete MessageReply w/QuoteDirect Link to This Post
I guess someone in the States was pissed that Canadians were buying old Fieros

But seriously, we are pissed when a new Camaro (at one time - ALL were built in Canada by the way)
COST LESS in Buffalo, New York than Oshawa, Ontario for the identical vehicle when the $ was at parity.

GM had all kinds of baffle-gab explaining why that car cost 20% more in the country of manufacture (ours).
Nobody bought their BS... (it boiled down to "because we can get away with it")

It wouldn't surprise me if the auto manufacturers had a hand in this...


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[This message has been edited by fierosound (edited 05-15-2014).]

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canfirst
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Report this Post05-16-2014 06:09 PM Click Here to See the Profile for canfirstSend a Private Message to canfirstEdit/Delete MessageReply w/QuoteDirect Link to This Post
Bump for the long weekend crowd looking to sell a vehicle to Canada or for Canadians looking to purchase a vehicle in the U.S.. This is very important new U.S. legislation now in effect. Don't get caught without having all the required documents, it could cost you a huge chunk of money!
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Patrick
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Report this Post05-16-2014 07:02 PM Click Here to See the Profile for PatrickSend a Private Message to PatrickEdit/Delete MessageReply w/QuoteDirect Link to This Post
 
quote
Originally posted by canfirst:

The filing must take place 72 hours prior to crossing the border.


I know nothing about this new regulation, but the previous paperwork required 72 hours notice as well. And if they say they don't have it (translation - they've misplaced it and don't give a sh!t) when you turn up at the border with the car (after you have filed in plenty of time), you're SOL. Ask me how I know.

[This message has been edited by Patrick (edited 05-16-2014).]

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canfirst
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Report this Post05-16-2014 09:13 PM Click Here to See the Profile for canfirstSend a Private Message to canfirstEdit/Delete MessageReply w/QuoteDirect Link to This Post
Patrick,

It's more complicated and serious than just giving 72 hours notice at the U.S. Border! This legislation will effectively kill Private vehicle sales from the U.S. to Canada unless a Private Seller gets a federal tax identification number called an EIN.

I don't know how difficult it is to get an EIN number or what the cost is (if any). I would imagine Car Dealers have an EIN number so purchasing from Dealers should be no problem, but do Private Sellers have to register as a Dealer to get an EIN number to be able to sell vehicles to Canadians?

Does anyone on the Forum know how complicated it is to get an EIN number and if it's time consuming and/or very costly? This is information that U.S. Sellers and Canadian Buyers will need to know before completing a transaction or bidding on a vehicle on eBay!

Note following:

A fine up to $10,000, under the U.S. Census Bureau foreign trade regulations, can be levied for failing to submit the AES information.

A potential problem is that to complete the AES filing, the U.S. seller is required to have a federal tax identification number called an EIN. Private individuals in the U.S. might not have an EIN number but, under the new rule, the American seller will have to get one to comply with the AES filing.
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Patrick
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Report this Post05-16-2014 09:31 PM Click Here to See the Profile for PatrickSend a Private Message to PatrickEdit/Delete MessageReply w/QuoteDirect Link to This Post
 
quote
Originally posted by canfirst:

Patrick,

It's more complicated and serious than just giving 72 hours notice at the U.S. Border!


I wasn't suggesting that it isn't. I was just commenting how the US border guys have always been able to totally screw Canadian buyers around even when they've already jumped through all the hoops.
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Report this Post05-17-2014 12:29 AM Click Here to See the Profile for fierosoundClick Here to visit fierosound's HomePageSend a Private Message to fierosoundEdit/Delete MessageReply w/QuoteDirect Link to This Post
 
quote
Originally posted by Patrick:

I wasn't suggesting that it isn't. I was just commenting how the US border guys have always been able to totally screw Canadian buyers around even when they've already jumped through all the hoops.


I brought the Indy through the proper channels with all the paperwork etc.
The US Border Officials had stamped all the paperwork and the title identifying the vehicle as being "Exported to Canada".

MONTHS later - I get a letter from the same US Border office claiming I had improperly taken the vehicle out of the country.
I think they were fishing for a something like a $500 fine (not positive of $$ figure) if I couldn't produce any paperwork.

Luckily I didn't throw away any paperwork (could have - didn't really need it once I got the car home and registered as "Canadian").
I sent them a several photocopies CLEARLY showing their stamps on all my paperwork. They never bugged me again.

I think they lost their own paperwork on their side - damn idiots (OR were just fishing).

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Fierochic88
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Report this Post05-17-2014 06:46 AM Click Here to See the Profile for Fierochic88Send a Private Message to Fierochic88Edit/Delete MessageReply w/QuoteDirect Link to This Post
If you don't have a separate EIN, you use your Social Security # here in the US. It's definitely another layer of hassle but it shouldn't be too hard.
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canfirst
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Report this Post05-19-2014 02:48 PM Click Here to See the Profile for canfirstSend a Private Message to canfirstEdit/Delete MessageReply w/QuoteDirect Link to This Post
Fierochic88, "If you don't have a separate EIN, you use your Social Security # here in the US. It's definitely another layer of hassle but it shouldn't be too hard."
Can you confirm this in writing with U.S. Census and Border Authorities?

"A potential problem is that to complete the AES filing, the U.S. seller is required to have a federal tax identification number called an EIN. Private individuals in the U.S. might not have an EIN number but, under the new rule, the American seller will have to get one to comply with the AES filing."

[This message has been edited by canfirst (edited 05-19-2014).]

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