What it costs to import electrical equipment to Canada

Landed cost, not sticker price

The number that matters is landed cost: what the equipment actually costs you delivered to your site in Canada, with everything included. It is made up of the goods price, international freight and insurance, import duty, GST, customs brokerage, and domestic delivery. Comparing a factory quote to a domestic distributor quote without landing it first is comparing two different things.

The good news is that for most electrical equipment, the duty and tax layer is smaller than people expect. The trap is a newer surtax rule that can apply to certain goods, covered below.

Import duty (usually low)

Electrical machinery and equipment falls under Chapter 85 of Canada's customs tariff. Because China does not have a free trade agreement with Canada, imports are charged at the Most-Favoured-Nation (MFN) rate. For much of Chapter 85, MFN duty is low, commonly in the 0 to 3.5% range, and a number of items are duty-free.

Exact rates depend on the specific 10-digit classification, so the duty on a transformer, a switchboard, and a VFD can differ. Canada's official Tariff Finder tool gives the rate for a given HS code, and a customs broker confirms the classification.

GST

On top of any duty, 5% federal GST applies to imported goods. It is calculated on the value for duty plus duty, essentially the landed value of the goods. For a registered business, this GST is generally recoverable as an input tax credit, so it is a cash-flow item rather than a permanent cost, but it still needs to be planned for.

The steel and aluminum surtax (the one that surprises people)

This is the important one. In addition to normal duty, Canada has applied a 25% surtax on certain goods containing Chinese-origin steel and aluminum. It started with steel and aluminum products in October 2024, and effective December 26, 2025, was extended to certain steel derivative goods. Because a lot of electrical and mechanical equipment includes steel enclosures, frames, and busbar structures, some items can fall within scope.

The practical consequence is documentation. To avoid or correctly apply the surtax, importers need proper evidence of the steel and aluminum content and origin, such as mill test certificates, not just a commercial invoice. Getting this wrong is where landed-cost estimates blow up after the fact.

This is precisely the kind of detail a good sourcing partner manages up front. Kelck classifies each item, flags anything that could attract the surtax, and coordinates the documentation, so the landed cost you are quoted is the landed cost you pay.

Why landed-cost certainty is the whole point

Overseas sourcing only makes sense if you can trust the final number. A factory price that looks great can erode once freight, duty, GST, surtax, and brokerage are added, and a nasty surprise at the border can wipe out the saving entirely.

The way to source with confidence is to have every one of these layers priced and documented before you commit. Kelck's estimate and quote break the landed cost down line by line, so you can compare it directly and honestly against your domestic option.