Importing industrial machinery into Canada: customs, duty and tax

To import a machine into Canada you need a business number with an import-export (RM) account, a correct tariff classification, proof of origin if you claim a free trade rate, and payment of any duty plus GST through the CBSA's CARM system. Most importers hire a licensed customs broker, but the importer remains responsible for the declaration.

This guide reflects official sources checked in September 2026. Trade measures changed several times in 2024 to 2026, so confirm current rules with the Canada Border Services Agency (CBSA) or your broker before each shipment.

Before the machine ships

• Business number and RM account. The CBSA states that you need a business number and an import-export program (RM) account before you import or export goods. The business number comes from the Canada Revenue Agency.
• CARM Client Portal. CARM (Assessment and Revenue Management) is the system the CBSA uses to assess and collect duties and taxes on commercial imports. Trade users gained access in fall 2024. Your business sets up its account in the portal and can delegate access to a broker.
• Release prior to payment. If you want goods released before duties and taxes are paid, the CBSA requires you to post financial security.
• Customs broker. The CBSA publishes a list of licensed customs brokers. Its import guide is clear that the importer is ultimately responsible for the accounting documents and the payment of duties and taxes, even when a broker files them.
• Other departments. The same guide asks importers to check whether other government departments require permits, certificates or inspection. Most production machinery does not, but electrical approval for use is a separate provincial matter, covered in our guide to CSA approval for imported machinery.

Tariff classification

Canada's Customs Tariff is based on the World Customs Organization's Harmonized System. Goods are declared with a 10-digit classification number, and the first eight digits form the tariff item that sets the duty rates for each tariff treatment. Most metalworking, woodworking, packaging and converting machines sit in Chapter 84, but the exact heading depends on what the machine does, and parts, tooling, spare parts and steel accessories shipped with it can classify differently.

The CBSA's import guide recommends collecting descriptive literature and composition details early, because they drive the classification. Where the answer is not obvious, the CBSA offers advance rulings on tariff classification, valuation, origin and marking, which give you a binding answer before you import.

Value for duty

Duty and most surtaxes are calculated on the value for duty, which is determined under sections 47 to 55 of the Customs Act. As the CBSA notes, transport and associated costs incurred after the goods begin their direct shipment to Canada are excluded. Contracts that bundle the machine with installation, training or software licences may need to be split for customs purposes. Ask your broker how to present the invoice before the supplier issues it.

Origin and free trade agreements

The duty rate depends on where the machine originates under the rules of origin, not on the country it was shipped from. A machine built in China and shipped from a warehouse in the United States is not a US-origin good. Canada's main agreements for machinery buyers are:

• CUSMA with the United States and Mexico. The CBSA requires a valid certification of origin to claim preferential tariff treatment.
• CETA with the European Union, relevant for German, Italian, Austrian, Belgian and Dutch machines.
• CPTPP with a group of Asia-Pacific countries, relevant for some Japanese machines.

Each agreement has its own rules and proof-of-origin requirements. Without valid proof at the time of entry, the machine is assessed at the general rate, so ask the supplier who will provide the origin documents and in what form. Our manufacturer pages show where each brand is based, and European vs Asian machines compares the wider trade-offs.

Surtaxes and trade measures, as of September 2026

Measure	In force from	What it covers (official summary)
China surtax on steel and aluminium	October 22, 2024	25 percent surtax on listed steel and aluminium products from China, from ingots and rolled products to tubes and structural shapes
Counter-tariffs on US goods	Most removed September 1, 2025	Canada's counter-tariffs on US steel, aluminium and automobiles remain; those on most other US goods were lifted
Steel derivative goods surtax	December 26, 2025	25 percent of the value for duty on listed steel derivative goods from all countries, such as structural parts, wire, chain, fasteners, springs and prefabricated buildings

The Department of Finance list of steel derivative products published in December 2025 covers goods in the metal and furniture chapters, and we found no Chapter 84 machinery on it. That does not settle every shipment. Steel stands, platforms, racks, bolts or structural parts shipped as separate lines can fall under a listed tariff item. The CBSA updated its customs notice on the derivative surtax in July 2026, and Finance says remission requests are considered case by case where goods cannot be sourced domestically. Check every line of the commercial invoice with your broker at the time of entry.

GST and provincial sales tax

The CBSA collects the 5 percent GST on imported goods, along with any duty. A business registered for GST/HST can generally claim input tax credits for the GST it pays on imports used in its commercial activities, as the Canada Revenue Agency's general guide for registrants explains. Provincial sales tax works differently from province to province, and in Quebec the QST is administered by Revenu Québec. Some provinces have exemptions for manufacturing machinery. Ask your accountant how your province treats imported equipment and whether you must self-assess.

Incoterms: who does what

Incoterms 2020, published by the International Chamber of Commerce, are eleven three-letter trade terms that set out the tasks, costs and risks of delivering goods from seller to buyer. They do not decide the price or when ownership passes, so the contract has to cover those separately. For machinery the common terms are:

• EXW or FCA: the buyer arranges and pays for almost all transport and export steps.
• FOB or CIF: sea terms where the seller loads the goods on the vessel (and, under CIF, pays freight and minimum insurance), while risk passes to the buyer at loading.
• DAP: the seller delivers to your site ready for unloading. Unloading, customs clearance, duty and tax stay with the buyer.
• DDP: the seller also clears customs and pays duty and tax, which means the seller acts as importer of record.

For a machine, also agree on crating, container or flat-rack shipping, insurance value, who unloads at your door and who is present when crates are opened. A Titan quote includes delivery, installation and training, and the delivery terms and importer of record are confirmed in the quote.

After the machine is released

Keep the commercial invoice, packing list, origin documents, broker entry and payment records. The CBSA can review entries after release, and corrections to classification, value or origin are your responsibility once you find an error. If a later ruling or remission changes what you owe, the records are what support a refund.

Checklist

1. Business number, RM account and CARM Client Portal access in place, with a broker delegated if you use one.
2. Machine literature sent to the broker for classification; advance ruling requested if in doubt.
3. Origin confirmed and the proof-of-origin document agreed with the supplier.
4. Invoice lines checked against current surtax lists, including steel accessories.
5. Incoterm, insurance and unloading responsibilities written into the contract.
6. GST and provincial tax treatment confirmed with your accountant.
7. Electrical approval and 600 V supply planned; see 600 V power for imported machines.

Once the paperwork is sorted, the practical side starts: our floor preparation checklist covers what must be ready when the truck arrives. To see what a delivered and installed quote looks like, send us your requirements.