The more we ship to CA, the more obvious it becomes that it's random. That's why even our "International Shipping Agents" can't explain how it works. It's basically the luck of the draw unless the vendor you're buying from is willing to lie and say it's a 'gift'.
It must be pretty random because I got 5-10 packages during the Christmas rush via USPS and this one was the only one that I had to pay customs for.
FYI: I get 80+ packages a year from the U.S. (they're not *all* keyboard related). Most are via USPS. I got two today, in fact. My postman and all of the front-line staff at the post-office know me by name.
I think they're *technically* supposed to collect on anything greater than $50 or so, but I've found that it's definitely quite random for low-value packages.
In my estimation, if the declared-value is less than $100, then you've got a roughly 5% chance of getting dinged for taxes (GST+PST or HST, plus a $10 handling charge). If the value is between $100 and $200, it's more like a 20% chance of getting dinged... still pretty good odds. Much more than that and the chances go up quickly.
USPS is still your best bet, IMO. Nobody else charges a handling fee that is any lower (and UPS/FedEx usually charge much more!), and the couriers *always* collect taxes. If you average the charges out over all the stuff you have delivered, you'll probably see that you come out way ahead with USPS/Canada-Post. Plus, if you're not at home during business hours, the couriers make you drive out to their warehouses in far-off industrial parks... Canada Post locations tend to be a lot more convenient.
Some other random US-to-Canada shipping tips:
- "UPS Mail Innovations" is usually OK; they just ship to the border, then hand-off to USPS/Canada-Post to actually cross the border and do the delivery.
- "DHL GlobalMail" relies on Canada Post to do the delivery, but they (always!) collect the taxes themselves, plus a $10 handling fee... and they do it via C.O.D., so it takes a long time to process the paperwork at the post-office (since they have to remit the fee as a money order).
- If you absolutely *have* to ship by UPS or FedEx, don't choose the cheapest method... choose one of the more expensive options where "brokerage" is included in the price. For example, if you ship a $50 declared-value package via "UPS Standard to Canada", they'll charge you a $35 "brokerage" fee, plus $7 or so in tax (plus whatever shipping fee you paid in the first place!). Their next tier up ("UPS Worldwide Expedited") includes brokerage, so you won't pay the $35 fee (though you'll still pay the $7 in tax). The difference in price between the two tiers of service is usually much less than $35, and Worldwide Expedited is generally faster.
Edit: This is all just *my* experience, of course... maybe some customs agents at different border crossings are stricter than others. But anecdotally, I've heard similar reports from friends in BC as well.