25-Year Import Loophole Overview
The 25-year import loophole involves filling out the HS-7, Box 1, the EPA 3520-1 Code E, as well as getting CBP clearance and a DMV title.
Vehicles 25 years or older skip key safety FMVSS (Federal Motor Vehicle Safety Standards) tests through HS-7 Box 1 and EPA (Environmental Protection Agency) emissions requirements via 3520-1 Code E. DOT (Department of Transport) HS-7 is the official declaration form for importing motor vehicles and equipment into the US.
For example, a 1999 Suzuki Carry clears both forms in stock configuration. States can’t block titled imports under federal law.
Step 1: Verify Eligibility
To import a 25-year-old or older vehicle, first, you must check the exact manufacture date of the vehicle (month/year) using its Vehicle Identification Number Plate, Build Sheet, Door Sticker, or Japanese Title/Export Certificate (Shoken).
The BOL (bill of lading) is collected from the carrier after the shipper’s confirmation. Required documents to avoid triggering a CBP hold include a foreign title, a bill of sale, a B/L, and an importer ID. Engine swaps disqualify EPA Code E unless they’re a U.S.-certified replacement.
Each state’s DMV determines regulations for post-CBP clearance imported Kei vehicles. For states like New York, New Jersey, California, Pennsylvania, etc., it’s necessary to have post-import belts/signals, which can cost between $500 to $1,000. Historic plates can reduce costs by 50% and also cancel inspections in 40 states.
Step 2: Prep DOT HS-7 (Box 1)
To prep DOT HS-7, it’s necessary to download the HS-7 form, check Box 1 for age exemption, and match the VIN exactly. It’s free to download the form, and can be filed by a broker for between $150 to $300. Box one will state “25+ years old, nonconforming due to age,” so no bond (financial guarantee) or conformity (certification) needed.
The importer’s name must match three key documents: the BOL, the Entry (CBP Form 7501), and the HS-7. Errors can result in delays and storage charges averaging $100 or more per day after 5-10 days. Be sure to list the exact VIN/make/model/year. JDM auction sheets validate the Kei chassis. Filing HS-7 yourself saves money on a broker, but risks rejection due to a higher possibility of unclean documents.
Step 3: Prep EPA 3520-1 (Code E)
When prepping EPA 3520-1 for light vehicles, select Code E, representing a vehicle that’s 21 years or older and exempt from requirements. You’ll have to detail the vehicle’s fuel type, engine cc, and catalytic converter if built after 1985. There’s no required test.
Cross-match HS-7 data to ensure the VIN, make, model, year, and importer name on your EPA 3520-1 mirror the details you put on HS-7. Any mismatch equals an automatic rejection.
There’s no federal form submission fee, and you should photocopy both the HS-7 and the EPA 3520-1 after completing them.
California and Washington state DMVs reject CBP clearance (HS-7 + EPA 3520-1) for registration if the Kei has an engine swap or missing emissions equipment, even under the federal 25-year exemption. They demand smog certification regardless of age, and a failed test means no title.
Step 4: CBP Filing & Clearance
Submit your HS-7 and 3520-1 forms to CBP at the kei vehicle’s port of entry. CBP will stamp originals, and you or a broker will keep your photocopies. You’ll pay a 2.5% duty on the purchase price of your vehicle.
Customs clearance, or the release of the vehicle after approval and payment of duties, takes 1-3 days. In some instances, if you or your broker personally delivers the HS-7 and EPA 3520-1 to the CBP office at the port terminal, they can stamp and release your Kei immediately.
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