[imack]

With free trade, there is no duty for items shipped from the U.S. to Canada (or vice-versa). The only customs charge for bringing something across the border is GST. The theory being that if you buy the item in the U.S. and then bring it into Canada, you end up paying the same, since you would pay GST if you bought it here.

What UPS charges so much money for is brokerage. When you bring something across the border yourself, your the broker. Filling out a few forms (probably automated in their case) is all they do for the outrageous fee they charge.