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The use of foreign-based vehicles and containers in international commercial transportation in Canada is governed by the Canada Border Services Agency (CBSA).
Importing foreign-based equipment. Under Tariff item 9801.10.00, Canada allows foreign-based vehicles and containers used in commercial transportation to be temporarily imported without duties and taxes.
CBSA defines “foreign-based conveyances” as equipment that:
These vehicles are subject to customs examination when arriving or departing Canada.
International commercial transportation. According to CBSA, international commercial transportation means any transportation that results in the movement of goods or people for hire or financial gain if the transportation of people or goods is:
Traveling through Canada. Qualified vehicles are permitted to transport goods through Canada from a point outside of Canada to another point outside of Canada.
When the goods being transported through Canada are transported in a Canadian-based vehicle for part of the travel, and then transferred to a foreign-based vehicle, the transportation is still considered international commercial transportation.
Incidental domestic transportation (point-to-point) is not allowed:
Point to point transportation. Vehicles (qualified under tariff item 9801.10.10 and 9801.10.30) may conduct transportation of goods from one point in Canada to another if:
Any point-to-point transportation must occur immediately before or immediately after the equipment is used for international commercial transportation. This means a foreign-based vehicle is limited to one point-to-point movement before or one point-to-point movement after use in international commercial transportation. Vehicle entering without freight or with a partial import or export load must also comply with these rules.
All point-to-point transportation in Canada must follow a route that is consistent with the movement of the freight in international commercial transportation. Foreign-based equipment may be used to transport goods from point to point within Canada to fill a less than full import or export load.
When conducting any transportation that is incidental the international transportation of freight, all required provincial operating authorities and other permits must be obtained.
Pick-up and delivery. Some carriers maintain terminals or warehouses in Canada used to consolidate or deconsolidate loads and to pick up or deliver freight.
When international goods have been delivered to such a location, a foreign-based vehicle or container maybe used to pick-up or deliver goods from that location for the duration of the 30-day period they are allowed in Canada.
The equipment must be used only to complete deliveries of other international goods previously delivered to the warehouse, or to pick-up and deliver to the location goods intended for export from Canada.
Empty equipment. Equipment entering Canada empty may be used for transportation incidental to the international movement of goods on the inward portion of an international trip provided it enters Canada to pick up a load for export.
The export load must have been scheduled before the empty equipment enters Canada.
Incidental domestic use of the equipment must always follow a route that is consistent with the pick-up destination in Canada. Foreign-based equipment is allowed only one such movement during an international transportation trip.
When empty foreign-based equipment moves between two points in Canada, it is not considered transportation incidental to the international movement of freight. Empty foreign-based equipment may be moved to any Canadian location without restriction.
Foreign-based drivers. The CBSA rules apply to foreign-based equipment only. Foreign drivers in Canada are governed by Canadian immigration rules administered by Citizenship and Immigration Canada.
Even though foreign-based equipment is operating legally under Canada Customs and Revenue rules, the foreign-based driver may not be in compliance. Contact Citizenship and Immigration Canada for information about the regulations for foreign drivers.
Information. For information regarding foreign-based drivers, contact:
Information regarding foreign-based equipment is available from:
Canada’s international commercial transportation regulations are summarized in Memorandum D3-1-5, dated April 9, 2020.