Welcome to the grey market.

Just about every car enthusiast Stateside has dreamed of owning a vehicle that was never originally sold in the United States Domestic Market. Cars like the R32/33/34 generations of boosted AWD Nissan Skyline GT-R, the six-time World Rally Champion Lancia Delta Integrale, and the Queen-approved 2-door Range Rover are just a few of the forbidden fruits denied to us Yanks. But where there’s a will, there’s a way, and that means importing via the grey market.

In general, the term grey market applies to any channel through which goods are sold via unofficial networks that have no relation to the manufacturer or producer. As it applies here, a grey market vehicle is any vehicle that was not sold new in the US domestic market but rather imported via a private party (i.e. not the manufacturer’s distribution channel). One of the most famous private importers was Max Hoffman, a New York businessman who is credited with almost single-handedly assisting in the development and importing of the Mercedes-Benz 300SL, Porsche Speedster, and BMW 507 into the United States.

While importing grey market vehicles isn’t a new concept, the process of doing so can quickly feel overwhelming or impossible. And considering the complexity of sourcing your dream grey market vehicle, its purchase cost, shipping logistics, and the additional expenses and fees, this isn’t a process you want to dive into blindly. So we thought a Vehicle Importation 101 would help clear up the process and perhaps encourage the hesitant dreamers out there. Because importing a grey market vehicle is not only possible, it’s easier now than ever before.

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Photo: © Datsun

What cars are eligible?

To keep things simple, all vehicles sold new in the United States must meet Federal Motor Vehicle Safety Standards (FMVSS) and EPA standards. The United States’ unique set of safety and environmental standards is inherently why we never received so many of the grey market vehicles we lust after. Thankfully, the differences between federal and international standards for many non-domestic market cars are minor enough that the Feds consider them roughly equivalent enough for import. Not all vehicles qualify, however — the car in question must meet at least one of three big federal eligibility requirements or exemptions:

• The car is at least 25 years or older

• The car is on the List of Nonconforming Motor Vehicles that are Eligible for Importation

• The car falls within the Show or Display amendment

Let’s discuss the 25-year exemption rule before the other two, because that’s how the majority of grey market vehicles are brought over.

1. The 25-Year rule

In a nutshell, you can legally import a grey market vehicle that’s 25 years or older as it is exempt from FMVSS and federal emission standards. This doesn’t apply in some states, like California, which have their own set of unique emissions requirements. Even if your vehicle is exempt from federal standards there’s a chance your individual state will bar you from titling and registering your it.

2. Nonconforming but importation approved

Another way to import a grey market vehicle legally is to bring over a vehicle that’s included on the List of Nonconforming Motor Vehicles That are Eligible for Importation (by or through a registered importer). Essentially, this list of approved-for-import grey market vehicles was compiled through a number of individual submissions and approvals. Either individuals or automakers convinced the NHTSA the grey market vehicle was similar enough to the US version equivalent that it wouldn’t need to meet FMVSS/EPA standards. While this isn’t a very common method, it’s worth skimming the list as there are some pretty cool grey market vehicles approved.

3. Show or Display Amendment

Finally, the Show or Display amendment provides a third method to import a grey market vehicle. In the late ‘90s, some wealthy enthusiasts used their pull to convince the top brass within the NHTSA that there were enough grey market vehicles so special that the benefit of their presence in the United States outweighed the nuances of complying with FMVSS. If a vehicle is submitted and proven to have enough “historical or technological significance,” it warrants FMVSS exemption. If approved, there are stipulations, such as the 2,500 mile per year limit of use. More details can be found here.

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Photo: © General Motors–Holden's

You can submit a vehicle for Show or Display approval here, but keep in mind the list of approved Show or Display vehicles is unsurprisingly shorter than the lengthy list of denied requests. Still, there have been plenty of amazing vehicles given FMVSS waivers via the Show or Display amendment. Unfortunately, Show or Display approved vehicles will still need to be brought into U.S. emissions compliance, which is a costly endeavor with no guarantee of EPA compliance and approval.

Which of these importation methods should you use?

While all three of these exemption options are viable, for reasons aforementioned, the easiest method for importing a grey market vehicle is to use the 25-year rule because it’s both FMVSS and EPA exempt. But remember, just because a grey market vehicle is deemed FMVSS and EPA (federally) exempt does not ensure you can title and register it in your state. You will need to extensively research your state-specific requirements for titling, registration, and emissions requirements. California and New York’s emissions standards notoriously being the most difficult/impossible to comply with.

Where to look for your next grey market vehicle

If you’re serious about importing a grey market vehicle, don’t limit yourself to a specific country of origin. For example, if you’d like to import, say, a Lancia Delta Integrale, don’t just look for one in Italy or Europe. Search Japan! While that might sound backwards, Japanese enthusiasts generally take exceptional care of their prized cars, and European classics remain very popular there.

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Photo: © Nissan

Canada’s grey market vehicle laws are 15 years versus our 25, so our northern neighbors will always be a decade ahead of us, meaning you could search for your dream grey market vehicle north of the border. Bonus: Buying a grey market vehicle that’s already been imported into Canada will significantly simplify logistics and other overseas roadblocks such as language barriers and international shipping expenses. This highly underused method will likely become more popular in time, especially given the rise in international shipping expenses and soon-to-be-eligible and desirable Japanese modern classics that are already trickling into Canada.

To get an idea on what you’ll have to shell out for your dream import, there are thousands of auctions across a number of websites. Here are a few good places to start searching:

• https://www.goo-net-exchange.com/

• https://www.ebay.co.uk/

• https://www.bca.com/it/

• https://www.tc-v.com/

• https://japancardirect.com/

The logistics

You found the car you want and won the auction, but then what? Definitely hire an import company. There is no shortage of US-based companies you can hire to handle the logistics. Their fee is well worth the peace of mind that comes from knowing a pro is handling all the paperwork and logistic arrangements on your behalf. A great place to start this process is to review the NHTSA’s approved list of Registered Importers and give an RI a call in your area. They will likely have several regional import company recommendations they regularly work with. Here are some well established importers:

• https://www.nipponimports.net/

• https://defendertraders.com/

• https://www.autoimportusa.com/

• https://www.europeancarimporters.com/

• https://rhdspecialties.com/

• https://www.japaneseclassics.com/

• http://www.jdmautoimports.com/

• https://jdmsportclassics.com/

• http://www.jdmflorida.com/

• https://www.importavehicle.com/

It seems the bulk of grey market vehicle importers are located in Washington, Oregon, Texas, Florida, and the upper East Coast, but there are dozens of importers scattered across the entire country that offer start-to-finish grey market vehicle sourcing, purchasing, shipping, customs clearing, and titling, which is what we recommend. Look for a reputable importer in your region and give them a call for details on their process. Most have a website, Google Reviews, Facebook page, and Instagram account. Once you’ve chosen an importer, you’ll need to locate a port of entry that meets you and your importer’s needs.

The paperwork. It's all about the date!

Depending on the country of origin, you’ll either need a Bill or Sale (proof of purchase), title, and/or a Certificate of Export. In addition to these basic purchase and ownership documents, you’ll need the following forms to complete the importation process (assuming you’re using the 25-year method for importation):

• Custom and Border Protection Entry Summary - Form 7501

• Department of Transportation Declaration - Form HS-7

• EPA Declaration - Form 3520-1

There are instructions available in the links above to assist in filling out the forms. If your grey market vehicle is 25 years or older, you will select Box 1 on HS-7, which states the following: “The vehicle is 25 or more years old or the equipment item was manufactured on a date when no applicable Federal Motor Vehicle Safety Standard or Theft Prevention Standard was in effect. Date of manufacture:_______________ [591.5(i)].”

It is paramount that, upon the time of entry at the receiving port, your grey market vehicle is at least 25 years old from the date of its production. If it’s even one day younger than that magical 25th year, U.S. Customs can declare your vehicle contraband and the repercussions are not only expensive but could result in seizure for immediate deportation, or worse destruction. All of which you will be billed for by the Feds.

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Photo: © Volkswagen

Clearing customs

Once you and/or your importer receives notice that your grey market vehicle has arrived at the predetermined Port of Entry, you and your importer will need to take a trip to the port to complete the U.S. Customs release process. You could always have an attorney draft up a Power of Attorney to have your hired importer complete the import process on your behalf if you wish to be totally hands off until taking delivery.

When I picked up my 1984 Toyota Century from the Port of Long Beach, I was given a 60-day window to get the vehicle titled and registered so long as I had valid insurance. My importation was done through the United States Air Force, so your process is dependent on state-specific leniencies and status of vehicle ownership (the Japanese title/Certificate of Export was in my name already).

Time to get that car on the road... almost

If not permitted for road use upon clearing customs, you or your importer should tow the vehicle until you’ve completed your state’s vehicle inspection (if applicable), titling, and registration process. Out of an abundance of caution, I called my insurance company immediately and updated my policy to cover my grey market vehicle so I could drive it immediately without worry.

Your importer can assist you in your state’s specific titling procedure and once your new grey market vehicle is titled and insured, you’re finally ready for the road.

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When Andrew Golseth isn't scribbling about automobiles he's diligently in his garage restoring his Alfa Romeo GTV.

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