Transport Canada has authorized QAI to be a ‘Compliance Specialist’ for direct imports of vehicles from foreign manufacturers, without RIV (Registrar of Imported Vehicles) inspections The purpose of the program is to ensure that all vehicles imported into Canada meet Canadian Safety standards. Visit Transport Canada’s website to learn more. Or go to: Home > Transport Canada > Road and Motor Vehicle Safety > Vehicle Importation >Preclearance List of Recognized Vehicle Importers
The Transport Canada program for importing vehicles authorizes QAI as a ‘Compliance Specialist’, to ensure that Canada Motor Vehicle Safety Standards are met. It shifts the burden of ensuring compliance to the Standards from dealers, and instead QAI works directly with the manufacturer to ensure compliance requirements are met. This makes the process more efficient and the environment more conducive for foreign manufacturers to enter Canadian markets.
a) QAI ensures that the foreign manufacturer complies with the CMVSS through a special process.
b) QAI liaisons with import/export brokers and vehicle dealers to ensure that the appropriate documentation is available for each vehicle. QAI oversees the process but is not directly involved in obtaining correct documents and paying the taxes. The responsibility for correct documentation and custom tariffs continues to reside with brokers and dealers.
QAI has been acting as the ‘Compliance Specialist’ for foreign manufacturers based outside of Canada since early 2010.
a) Foreign manufacturers: Receive an opportunity to expand their markets and sell more vehicles in Canada and only have to deal with one company (QAI) for handling vehicle compliance documentation.
b) Brokers: Increased volume of business because simplified process for exporting vehicles to Canada and single source for handling compliance documentation means that more foreign products can arrive in Canada.
c) Dealers: Can now offer more choices to customers and delight them as the dealer no longer has to register each manufacturer on their Transport Canada Appendix G Pre-clearance list and can import from any manufacturer that QAI represents. See list here.
All foreign vehicle manufacturers must meet the Motor Vehicle Safety Act (MVSA) and Canadian Motor Vehicle Safety Standards (CMVSS). The MVSA requires that foreign manufacturers have a legal representative in Canada (known as the compliance specialist) that is able to demonstrate compliance of each vehicle to the MVSA and CMVSS. Choosing QAI as the compliance specialist means you have chosen an agency that is willing to collect and review documentation to help ensure that compliance with the CMVSS is maintained.
a) QAI carries out an evaluation of the vehicles by documenting materials and method of construction of the vehicles and assesses the capacity of the manufacturer to comply with the Canadian Motor Vehicle Safety Standards (CMVSS) regulated by Transport Canada.
b) QAI also acts as a liaison with Transport Canada, Canadian Border Service Agency (CBSA) and with Canadian Vehicle Dealers on issues related to compliance.
c) After successfully completing the compliance process, QAI compiles a compliance package and applies to Transport Canada to act as the ‘compliance specialist’ for the vehicle manufacturer. When Transport Canada approves this, the manufacturer appears under QAI’s Pre-Clearance list of manufacturers.
d) Once the manufacturer is added under QAI’s listing on the Transport Canada Pre-Clearance list any Canadian dealer is able to import vehicles using QAI as the ‘Compliance Specialist’ expanding your client base and readiness to serve your clients .
QAI is accredited by the Standards Council of Canada (SCC) as a certification body for recreational vehicles. QAI evaluates and inspects recreational vehicles for compliance with the Canadian recognized standard CSA Z240 RV Series which includes requirements for safety features, plumbing, gas and electrical systems. Certification and Listing is required by vehicle manufacturers to show compliance with provincial gas and electrical regulations. Listing in the QAI directory means that the manufacturer is compliant with the relevant certification/inspection compliance standards
Certification means that the QAI label is placed on the side of a vehicle indicating compliance with the CSAZ 240 RV standard. Certified clients are Listed in a special directory on the QAI website. Listing in QAI directory means that the manufacturer is compliant with the relevant certification/inspection compliance standards. There are certain other requirements for initiating and maintaining list/certification and if you are interested in this, please contact….
QAI has templates and instructions set up to make it easy for manufacturers to submit the required information in an organized manner. Please contact QAI for more information.
When Transport Canada approves the QAI application on behalf of the foreign manufacturer, they will appear on QAI’s (Appendix G) Pre-clearance list.
A full compliance package must be prepared for all foreign manufacturers that are not currently registered. This time frame is dependent on the ability of the manufacturer to provide the required documentation. It could take from 4 – 6 weeks depending on the complexity.
At minimum the following documents are required at the start of the relationship: a) TC 13-0160: Foreign Manufacturer Registration b) Standard Agreement letter between QAI and Manufacturer (TC01, TC03) c) Pre-clearance application QAI continues to work with the manufacturer to prepare the compliance documentation within a planned time frame.
Only foreign vehicle manufacturers can be added under QAI’s Pre-clearance list. Being on the Pre-clearance list implies that the manufacturer is capable of meeting certain safety and quality standards. QAI needs to have a direct contract with the manufacturer in order to collect confidential compliance information.
QAI refers to the documents required to demonstrate compliance. It is a set of documents that demonstrate compliance of all vehicles imported into Canada with the CMVSS requirements
A ‘compliance package’ has detailed documentation that can be sent to Transport Canada upon request to demonstrate compliance of vehicles to the CMVSS. The compliance package must be representative of all vehicles that the manufacturer sells to Canada where QAI is used as the ‘Compliance Specialist’. Package size can range from a dozen pages to hundreds of pages depending on vehicle complexity.
For every vehicle exported to Canada, the foreign manufacturer creates a Canada Customs Invoice naming the Canadian dealer as the consignee and the purchaser. The broker will charge the vehicle dealer for brokerage fees and taxes. The foreign manufacturer must also complete a NVIS for each vehicle they export into Canada. Once per year, the vehicle manufacturer should also provide QAI with a completed copy of their NAFTA B232 ‘Certificate of Origin’ document. This document allows Canadian dealers to import vehicles produced by foreign manufacturers without paying duties (however, taxes must be paid).
The main benefit to brokers is that QAI does not force the dealer to use only one designated broker, which means that multiple brokers can work with us. The brokers share information and documents with us about the import of the vehicles and this is kept confidential.
As the ‘Compliance Specialist’, QAI must obtain a copy of the following documents: a) Transport Canada Form 1 b) Canada Customs Invoice
a) the dealer is no longer responsible for vehicle compliance to CMVSS requirements or issuing recalls b) the dealer no longer has to deal directly with Transport Canada on compliance related issues c) the dealer can still use their existing broker d) the dealer can still claim tax credits e) the dealer can still apply for vehicle financing through their financial institution
The QAI Appendix G Pre-clearance Program has received plenty of positive feedback from foreign manufacturers and Canadian dealers. Dealers are able to import vehicles using their existing processes without the extra responsibility of ensuring compliance with Canadian vehicle regulations.
For price information, please talk to the vehicle manufacturer. QAI does not invoice the vehicle dealer or broker for any work; QAI contracts directly with the vehicle manufacturer to act as the ‘compliance specialist’.
You can pass the foreign manufacturer’s contact information along to QAI and we will be happy to have a member of our sales team contact the manufacturer to explain the benefits of our program. You may also contact the manufacturer directly and explain the benefits of our program. A QAI representative will assist the manufacturer by demonstrating compliance with Canadian regulations and act as the ‘compliance specialist’.
Please visit Transport Canada: http://www.tc.gc.ca/eng/roadsafety/safevehicles-importation-pre-clearance-index-447.htm
Dealer Association: http://www.rvda.ca/intro.htm
Compliance Package: Information required by MVSA to demonstrate compliance to CMVSS
MVSA: Motor Vehicle Safety Act: Government law that governs vehicle safety standards in Canada.
CMVSS: Canada Motor Vehicle Safety Standards
Dealer: A retail business that sells new vehicles
Broker: Customs brokers clear shipments of imported goods, prepare required customs documentation, and collect duty on behalf of the government of Canada.
Foreign Manufacturer/OEM Manufacturer: Motor vehicle manufacturer who makes new vehicles that are imported into Canada.
Compliance Specialist: Sometimes referred to as Transport Canada’s Preclearance Program, has been authorized by Transport Canada to ensure that imported vehicles comply with CMVSS (Canada Motor Vehicle Safety Standards)
Pre-clearance program: A program by Transport Canada to facilitate importation by conveying shipments through Customs with minimal inspection and scrutiny. The process of being added to the pre-clearance list with Transport Canada involves: 1. Agreement between a foreign manufacturer, a compliance specialist and Transport Canada to comply with Canadian regulations. 2.Pre-clearance is meant for manufacturers with engineering capability and for compliance specialists that pose a low risk of compliance problems. These are liability-conscious companies, which, in the opinion of Transport Canada (TC), can take corrective measures, and have the obvious ability to issue a “notice of defect” (recall) to customers, if a safety defect is found in the vehicles after they are imported.* Visit Transport Canada’s website for more information.
Form 1: Vehicle Import Form issued by CBSA. Details the vehicle and the businesses involved in importing it into Canada. It will have the stamp of the day the vehicle entered Canada.
B3-3: Canada Customs Coding Form issued by CBSA. It details the tariff code and other information that will be recorded by Customs about the import.
CI1: Canada Customs Invoice is an invoice that details the payment to be made to Customs.
NVIS: New Vehicle Information Statement issued by Transport Canada
Certificate of Origin: Issued by the foreign manufacturer, it shows the VIN# and other information about the vehicle as well as where the vehicle was manufactured.
Compliance package: QAI’s term for the compliance documents that are compiled with the assistance of QAI.
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