The 1.5L Corolla motor is a 1NZ-FE and as far as I know, there's nothing gray-market about it. They just don't stick that particular motor into this particular car for US models.
Quote:
(cc) Peak Metric Power
(kW(PS)/rpm) Peak
Horsepower Peak torque
(N-m(kg-m)/rpm)
Torque
(lb-ft)
Mileage*
(km/l) mpg*
2ZR-FE 1,797 100 (136)/6,000 134 @ 6,000 175 (17.9)/4,400 129 17.2 40.5
1NZ-FE 1,496 81 (110)/6,000 108 @ 6,000 140 (14.4)/4,400 103 18.2 43
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This is from corolland.com