For Canadian franchise dealers and fleet operators, vehicle exporting presents a huge profit opportunity – but only if you navigate compliance the right way. Failing to meet regulatory requirements can lead to costly delays, denied imports, or worse, vehicles that can’t be sold in the US.

The good news? Compliance doesn’t have to be complicated. With the right tools and processes in place, your cross-border transactions can be smooth and you can keep your export pipeline moving without unexpected roadblocks.

Here’s what you need to know about avoiding common export pitfalls and how Signal’s compliance tools make the process seamless.

Common compliance issues that can cost you time and money.

1. Recalls matter, but they’re not deal breakers.

One of the biggest misconceptions dealers have about exporting is that recalls will automatically disqualify a vehicle from being shipped to the US. The reality? Most recalls can be resolved quickly, but they must be cleared before export.

• Vehicles with open recalls cannot start their mandatory 30-day DOT holding period until all recalls are fixed.  

• Dealers who fix recalls early can turn inventory faster and avoid unnecessary delays.

• Unfixable recalls (such as airbag issues on older vehicles) are, in fact, a deal breaker, which is why checking compliance before purchasing vehicles for export is critical.

How Signal helps.

Our platform automatically flags open recalls during the appraisal process, giving you a clear picture of what can be exported profitably.

2. Export duty calculations: The 25% trap.

Tariffs and duties are always a hot topic, and recent policy changes under the new US administration mean dealers must be more aware than ever.

Here’s the breakdown of how duties work:

VINs starting with 1, 4, or 5: These are US-made vehicles and are duty-free, meaning they can be imported with zero additional cost.

VINs starting with 2 or 3: These vehicles may be subject to a 2.5% duty on cars/SUVs and a 25% duty on pickup trucks unless they meet specific USMCA exemption rules.

Why does this matter?  

A $60,000 RAM 3500 built in Mexico will face a significant $15,000 duty charge, making it a poor export choice.

Certain GM trucks built after June 2020 are duty-free regardless of VIN, thanks to United States-Mexico-Canada Agreement (USMCA) exemptions. Not knowing these rules can mean leaving money on the table.

How Signal helps.

Our platform automatically calculates duty rates before you purchase a vehicle for export, so you’re never caught off guard by hidden costs.

3. TPMS: The hidden compliance requirement.

Tire Pressure Monitoring Systems (TPMS) might not seem like a big deal, but they are a non-negotiable requirement for US imports.

• If a vehicle does not have TPMS installed, it cannot be imported into the US.

• The official compliance lists from the government haven’t been updated since 2017, making it tricky for dealers to check TPMS status manually.

How Signal helps.

Our system maintains an up-to-date TPMS compliance list, ensuring you never export a vehicle that can’t be imported.

How to stay ahead of regulatory changes and avoid export pitfalls.

With changing tariffs, evolving compliance rules, and shifting demand, dealers who rely on outdated processes risk costly mistakes.

Here’s how top-performing Canadian exporters stay ahead:

Leverage real-time data on compliance and duties.

• Signal’s platform continuously updates compliance regulations so you’re never working with old information.

• You get instant visibility on recall status, duties, and TPMS compliance before making any export decision.

Use automation to eliminate risk.

• Manual tracking leads to errors. Signal automates compliance checks, so nothing falls through the cracks.

• Automated documentation management keeps your exports on track and on time.

Work with the right Registered Importer (RI) partner.

• Navigating DOT and EPA paperwork requires expertise.

• Signal’s RI services ensure every vehicle meets US standards so you can move inventory faster without compliance headaches.

Don’t let compliance slow you down – let Signal handle it.

Exporting vehicles should be profitable, not painful. With Signal’s compliance tools, you get:

Automatic recall tracking and resolution alerts.

• Duty calculations before purchase (no surprises later!)

• Up-to-date TPMS compliance checks.

• Seamless documentation management.

• Registered Importer (RI) support for a hassle-free process.  

Ready to get started? Connect with one of our team and start building your first load!