What to Do When Exported Vehicles Return

Most dealers know how to process sales of a vehicle that will be registered someplace other than Texas, whether that place is New Mexico or New Zealand. Fewer know what to do when that exported vehicle returns to Texas. Can the dealer simply place the car in its inventory and proceed with selling? Not so fast.
The Export Sales rule, 43 Texas Administrative Code 215.147, sets out the requirements for dealers handling a sale to a foreign buyer. In summary:
  1. Either collect MV sales tax or get a Comptroller's exemption form signed;
  2. Obtain the buyer's photo identification issued by the jurisdiction where the buyer resides;
  3. Stamp title “For Export Only” and give it to the buyer. Title must accompany vehicles for Customs;
  4. For a retail sale, issue a buyer's tag and collect the $5 e-tag fee;
  5. For a wholesale transaction, inform your buyer that they need a tag from their country if they plan on driving the vehicle back. 
If a retail buyer returns an exported vehicle to Texas, several things need to happen in order for a dealer to sell it again. In the best case scenario, Customs will complete and provide you with an entry, CBP Form 7501. You'll receive the Form 7501 after you provide Customs with EPA Form 3520-1, DOT form HS-7, and the original title.
Question: Wait, when I stamped the title “For Export Only” I gave it to the buyer. Where is the title now?

Answer: When the vehicle was first exported, Customs required that the title accompany the vehicle. Once Customs stamps the title, it is returned to the owner. If no one can find the original title, then a dealer will have to obtain a bonded title in order to sell the vehicle.
The dealer will take the vehicle for a 68-A Auto Theft VIN Inspection. After the vehicle is cleared, then the dealer can prepare the vehicle for sale.
The worst case scenario is that Customs stamps the HS-7 declaration form as “Not for Title or Sale in the US.” If this happens, Customs will have to provide the dealer with a written statement, on CBP letterhead, that indicates why the vehicle cannot be titled and registered. The Texas Department of Motor Vehicles will review that statement, along with the VIN inspection. Assuming there are no issues with either, the dealer would be allowed to apply for a bonded title.

The process of importing a vehicle to the United States is long, but necessary. Do call us here at TIADA if you have any questions.


By: Adam
On: 05/23/2017 03:43:49
On: 01/23/2020 19:41:24
I'd like to see step by step recommendations for an independent dealer selling a used car (salvage, rebuilt, or clean title) to an individual from Mexico as an exported vehicle. If selling a salvage/rebuilt car for export into Mexico, do I need a dealer salvage license? What do I need? Thanks!
By: Jessica
On: 01/25/2020 19:18:38
I have a export title can i getit retitled
On: 01/27/2020 13:04:25
MAS, An independent dealer can export a salvage, rebuilt or clean title as long as the vehicle is titled correctly. So, if the vehicle is salvage you will need a salvage title that you stamp export when you sell the vehicle intended to be exported out of the country. If you have an independent dealers license you do not need a salvage license. For information on exports see the following blog:
On: 01/27/2020 13:11:39
Yes, it starts with customs form 7501. If you have more questions reach out to our compliance consultation service for assistance.
By: Luis Meneses
On: 04/25/2020 13:50:06
I have a 2011 Cube vehicle with salvage for export only title. the car is in mexico, it crossed the border running for repair and it was never "exported". The car had a slight body damage on the front and is already repaired.
I am interested in obtaining a texas title for my car. What should I do.
I live at 148 Mardigras, El Paso, TX. Thanks a lot
On: 04/25/2020 14:38:29
If you are a dealer and a member of TIADA we can assist you. If not, I would suggest you contact your local tax assessor collector in El Paso.

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