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Ottawa softens rules on U.S. auto imports
Nov. 30. 2007
Source: Ctv.ca

OTTAWA, TORONTO — In an about-face yesterday, the Harper government offered an amnesty to 1,100 U.S.-purchased vehicles whose owners had been forced to ground them because they failed to meet new Canadian requirements for anti-theft features.

It also said it would allow imports of U.S. cars even if the anti-theft immobilizer they're equipped with only meet less-strict American standards, removing an obstacle that had discouraged Canadians from cross-border shopping for vehicles in recent months.

“This amendment will mitigate the economic hardship to Canadian consumers who have purchased vehicles in the United States and are unable to license them in Canada,” the government said in a regulatory notice yesterday.

“[It's] intended to offer more flexibility to vehicle importers while maintaining comparable safety requirements for imported vehicles as are provided by vehicles sold at the retail level in Canada.”

But Ottawa's move has also created a loophole that's certain to irk auto makers, who as of Sept. 1 have been required to include immobilizers in vehicles sold in Canada – devices that meet stricter standards than those in the U.S.

Ottawa says it will now allow the import of U.S.-sold cars lacking immobilizers as long as they can be fitted with one in Canada – or if they're equipped with ones designed under U.S. standards.

But the federal government will continue to require that cars sold in Canada contain an immobilizer that meets tighter Canadian standards.

Under rules Ottawa set in place years ago, cars sold in Canada after Sept. 1, must have an anti-theft immobilizer that is designed to resist attack by a thief for five minutes, based on the theory that a criminal will give up if breaking into a vehicle takes too long.

Immobilizers on cars sold in the United States do not have to meet that standard.

Transport Canada spokesman Patrick Charette said what's important is that cars at least have some immobilizer.

“There is no standard in the U.S. So we can't compare,” Mr. Charette said in an e-mail. “What we're saying is that we recognize that vehicles equipped with the device meet our primary objective: safety.”

One auto industry source said this means vehicle makers will continue to face added costs in Canada unless Ottawa eliminates the regulation that requires an immobilization device here that's different than what's required in the U.S.

Ottawa's amnesty pleased the owners of 1,100 vehicles that had been grounded because they ran afoul of the new Sept. 1 Canadian immobilizer requirements.

“It appears to me they have put in place a law that accepts the U.S. immobilizer, or U.S. standard … so it sounds like a very good thing that's just happened,” said Robert Lamb of Kirkland, Que.

Mr. Lamb, who had been forced to park a 2008 Honda Civic EXL that he bought in the U.S., helped lead a lobby group that fought for clemency from Ottawa.

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This whole importing a car from US will die down soon. i've been comparing used car prices in US and Canada(auction prices). Canada has gone down a lot since the last two months. its just a matter of time before it evens out. I guess the same will go for new cars.

Dealers will give in and lower their prices here. So i won't bother with importing from US, but i would wait for couple of more months before i make my purchase.