US car imports & the 25-year rule: What to know

If you’ve explored the idea of importing a car to the US, you might have heard about the 25-year import rule. But what does it mean? Are there ways to get around it?

The 25-year import law refers to cars that are at least 25 years old. Thanks to this rule, they’re much easier to import, because federal safety and emissions standards are waived for cars more than 25 years old. But there are other exceptions that might apply to your situation.

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What is the 25-year import law?

To be imported into the US, all cars need to meet safety standards under the National Highway Traffic Safety Administration (NHTSA) and Environmental Protection Agency (EPA). But under the 25-year import law, cars 25 years or older are exempt from these restrictions.¹

The 25-year import law thus makes it much more straightforward to bring a car into the US if it’s at least 25 years old.

Why is there a 25-year import law?

In the mid-1980s, US auto dealerships were concerned about the “gray market” for foreign cars. Small importers were buying luxury cars overseas, modifying them into compliance with federal standards, and selling them to US buyers for cheaper than dealerships were selling foreign cars originally manufactured for US specifications.²

Because the imports were legal, but the cars were not technically manufactured for sale in the US, these cars were termed “gray market” imports.

Seeing their supply chains circumvented made US dealerships upset. In 1988, the US Congress implemented strict rules that made it expensive to modify cars into federal compliance and required businesses that performed them to register with the NHTSA and EPA.³ The law suffocated the gray market for auto imports.

However, the new law also exempted cars that were at least 25 years old from federal safety and emissions standards, on the basis that they were “classic or antique.”³

Since then, car enthusiasts have waited until their favorite foreign cars reach the 25-year mark to bring them stateside, because the importation process is so much easier.

Is there any way to get around the 25-year import law?

Most cars can still be imported into the US, even if they can’t take advantage of the 25-year import law. Others can be imported temporarily for specific purposes without meeting US standards.

Here are some other ways to import a car to the US without the help of the 25-year rule.

Automatic conformity

Some cars manufactured in other countries already conform to US safety and emissions laws. If they do, they’ll have labels that make this clear. However, Customs and Border Protection cautions that this is rare.¹

Work with a registered importer and independent commercial importer

If your car is eligible to be modified into compliance with NHTSA and EPA standards, you can contract with authorized businesses that will modify your car into compliance. A Registered Importer (for NHTSA rules) and Independent Commercial Importer (for EPA) will do this for you.¹

You have to contract with these importers in advance and also post a bond at the border while the work gets done.¹ This can be a very expensive process, but for the right car, it could be worth it.

Visits for less than a year

If you’re a non-US resident and coming to the US with a car, you can keep it with you for less than a year. After that, however, the car must go back.¹

State department guests

If you’re an official guest of the US State Department through your home country, whether for military, diplomatic, or other reasons, your car is free to come with you.¹

Racing, display, or competition

Cars coming into the US temporarily without any intention to drive on public roads — like for a show, a race, or something similar — will be able to travel to the US without conforming to safety and emissions standards. However, you will have to get permission from both the NHTSA and EPA beforehand.¹

What happens if I ship a newer car?

If you ship a car that doesn’t meet the 25-year import law exemptions, and you haven’t done any work ahead of time to contract with a registered importer or get special permission from NHTSA or EPA, the car may be held indefinitely or destroyed.¹

But if you compile the necessary forms and prove that your car is NHTSA and EPA conforming, then you’ll have no trouble importing your car.

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How to verify a car for import

Here’s what you need to do to make sure your car is ready for import:

Step 1. Verify that the car meets NHTSA and EPA requirements: If it’s 25 years or older, these don’t apply. You’ll want to check for labels that certify that conformity, or confirm with a registered importer that your car is modifiable to federal standards.

Step 2. Contract your shipping and gather your documents: You’ll need forms from the NHTSA, the EPA, and US Customs and Border Protection (CBP) verifying that your car is eligible to import, along with other identifying documents for your car.

Step 3. Meet your car at the border: Give CBP advance notice that you’re importing the vehicle and when it’s going to arrive.

Step 4. Pay the requisite duties and fees: You’ll need to pay a merchandising fee to CBP as well as an import duty of 2.5% for passenger cars, along with carrier fees and other expenses.¹

Step 5. Register your car in the US: This process and its cost will vary by state, along with the time period in which you’re legally required to do it.

The 25-year import law is a lifesaver if you want to bring a vintage car from overseas to the US. Before you start the process, it helps to know all the rules that govern car importation and the costs that you might be in for. Even without the advantage of the 25-year import rule, you may still want to import a car.

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Sources

1. CBP - Importing a Motor Vehicle
2. Washington Post - U.S. Preparing to Curb Importers of Highly Discounted Luxury Cars
3. US Congress - H.R.2628
4. DOJ Archives - Unlawful importing