UPDATE -
Yes, the package was sent from Germany directly. The tracking says the item is going to the USA, that's why I was apprehensive but I finally got the item from Canada Post. The cost of the item is stated as 12.85 euros (around 18 cad), so there were no duties.
I was sent a new controller unit (just the sensor and controller box - no pump - no magnet - no power adaptor). I thought I got the wrong item because Roger from Tunze USA told me that the problem is probably the pump.
I dismantled the old unit and replaced the controller. It worked! I switched back to the old unit to test and it didn't work. It seems that the old unit is not sending out current to the pump when on.
Anyway, problem is finally fixed. Thanks Jeff for your great customer support !!