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Selling a Vehicle to a Foreign Buyer or for Export

A foreign buyer or US-based exporter is a normal customer with one extra requirement: federal customs has to clear the export. The title leaves the country. Your DMV needs to be told. The bill of sale needs to satisfy port officials in two countries. Here is the workflow.

The 72-hour customs rule

Federal regulation (19 CFR 192.2) requires the original certificate of title to be presented to US Customs at least 72 hours before the vehicle leaves the country. Customs verifies:

  • The title is genuine and matches the vehicle
  • The VIN matches the title and the vehicle
  • There are no liens or law-enforcement holds
  • The seller and buyer information matches the title transfer

The exporter (usually the buyer or their freight forwarder) handles the filing through the Automated Export System (AES). You provide the documents.

What documents the buyer needs from you

  • Original title (not a copy), signed over to the buyer
  • Notarized bill of sale (highly recommended even if your state does not require it)
  • Your government-issued photo ID
  • Lien release if the title shows a prior lien
  • Odometer disclosure

What goes on the bill of sale

  • Buyer\'s full name and home-country address
  • Buyer\'s passport number (helpful for customs and shipping documents)
  • US-based exporter or shipping agent (if any)
  • Vehicle make, model, year, VIN
  • Sale price (in USD)
  • Statement that the vehicle is being purchased for export
  • "As-is, no warranty" clause
  • Date and notarization

Sales tax on export sales

Most states exempt direct-export sales from sales tax. The seller does not collect; the buyer signs an export exemption form. The exemption typically requires:

  • Proof of export within a stated period (often 90 days)
  • Sale to a buyer with no in-state residency
  • Documentation kept on file by both parties

If the buyer registers the vehicle in any US state instead of exporting, sales tax becomes due. Many states have clawback provisions if export does not actually happen.

Verifying the buyer

Foreign buyer scams are common in private-party export. Red flags:

  • Cashier\'s check for more than the sale price ("can you wire the difference to my shipper?")
  • Wire from a country that bears no relation to the buyer\'s claimed home
  • Buyer who never sees the vehicle in person
  • Pressure to sign the title before funds clear

Insist on a wire transfer that fully clears your account before signing the title. Verify the wire with your bank by phone, not by email confirmation that could be forged.

Protecting yourself after the sale

  • File a notice of release of liability with your state DMV
  • Cancel insurance the day of sale
  • Request the buyer\'s confirmation of export within 90 days
  • Keep all paperwork for at least 4 years (IRS records, customs disputes)

Frequently Asked Questions

Is selling a vehicle for export different from a normal sale?

Yes. Federal customs law requires the title to be presented to US Customs at least 72 hours before export. Customs verifies the title is clear and the VIN matches before allowing the vehicle to leave the country. Skip this and the vehicle gets stopped at the port or seized.

Do I need to do the customs filing?

No. The exporter (often the buyer or their freight forwarder) files. But you must give them the original title (not a copy), a notarized bill of sale, and your ID. Without these the export filing fails.

Can I sell to someone with no US ID?

Yes, but you should verify their passport and home-country driver license, and require their US shipping agent to be on the bill of sale or take responsibility for export. Most foreign buyers work through a US-based broker for this reason.

Is the sale subject to sales tax?

Most states exempt sales for export, but the buyer must show proof of export to claim the exemption. Sales to a buyer who registers the car in any US state pay normal sales tax. Casual private-party export sales often charge tax that the buyer may later try to recover.

What's the title risk if export does not happen?

If the buyer fails to export and the title is left in your name unused, you may be on the hook for the car indefinitely. File a notice of release of liability with your state DMV and require the buyer to confirm export with a date.

Selling for Export?

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