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Landed Cost Canada 2026: Calculate Import Costs in 7 Steps

By TariffCalc Editorial Team

Landed cost is the total cost of getting an imported product to your door in Canada. It goes beyond the purchase price to include all duties, taxes, and fees. Understanding each component is key to accurate import budgeting.

Components of Landed Cost

  1. Product cost: The price paid to the supplier (FOB, CIF, or other Incoterm)
  2. Freight: Shipping from the foreign port to the Canadian port of entry
  3. Insurance: Cargo insurance during transit
  4. Customs duties: Based on the HS code and country of origin
  5. Surtaxes: Additional tariffs (e.g., China surtaxes, US retaliatory surtaxes)
  6. SIMA duties: Anti-dumping or countervailing duties if applicable
  7. Excise duties: On specific goods (alcohol, tobacco, cannabis, fuel)
  8. GST/HST/PST/QST: Federal and provincial sales taxes
  9. Customs broker fees: Professional fees for customs clearance
  10. Inland freight: Transportation from the port to your warehouse

Value for Duty (VFD)

The value for duty is the base on which customs duties are calculated. Under the transaction value method (most common), VFD = price paid or payable + adjustments for:

  • Commissions and brokerage fees (paid by the buyer)
  • Assists (tooling, molds, engineering provided to the supplier)
  • Royalties and license fees
  • Proceeds of subsequent resale that accrue to the seller

Calculation Example

A $10,000 USD shipment of electronics (HS 8471.30.00.00) from the US to Ontario:

  • Product cost: $10,000 USD
  • Exchange rate (CBSA monthly): 1.38
  • Value for duty: $13,800 CAD
  • CUSMA duty rate: Free (0%)
  • Customs duty: $0
  • HST (13%): $1,794
  • Landed cost: $15,594 CAD (before freight and broker fees)

Use TariffCalc for Instant Calculations

Instead of doing this manually, enter your details in our duty calculator and get the complete breakdown in seconds, including all applicable surtaxes, SIMA duties, and provincial taxes. For shipments below certain values, you may qualify for the de minimis exemption.

Frequently Asked Questions

What is included in landed cost?▼

Landed cost includes: product cost, international freight, insurance, customs duties, surtaxes, excise duties (if applicable), GST/HST/PST/QST, brokerage fees, and any other fees required to get the goods to your Canadian location.

How do Incoterms affect landed cost calculation?▼

Incoterms determine which costs are included in the invoice price. For example, FOB includes costs to the port of export, while CIF includes freight and insurance. CBSA adjusts the value for duty based on the Incoterm used.

Why is my actual landed cost different from the estimate?▼

Common reasons include: exchange rate fluctuations between estimate and actual payment, CBSA reclassification of your goods, additional examination or storage fees, and variations in actual freight costs versus estimates.

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