According to my calculations, if LCD ships 20 gallons to residential address in Buffalo, NY in 5gal batches (to save some money) for me to pick up and bring into Canada, the "at border" cost will be US$32.94. That's with LCD code, FedEx "at home" shipment runs for US$4.44/gal.
Adding GST (7%) and exchange brings it to CAD$45.82/gal. The final cost at my home will be CAD$47.62. That's if I don't have to pay PST (another 8%), there should be no duty on products like these. May be I'm wrong here as well.
I guess to make the trial run make some sense economically, the stuff has to be sold for CAD$55.00. We can skip taxes on that one since I'm not registered.
If I mail it inside Canada, the cost could easily run into CAD$60-65/gal (US$46-50). That's about the same deal as shipping directly from LCD to Canada...
It is obvious that the biggest obstacle for LCD Canadian operations is delivery price. FedEx works nicely for very small quantities inside the US. If you want to talk to the bulk ground carriers, they start to show the interest if you ship tens of thousands of dollars in goods. There isn't enough interest for product in Canada so far to justify the risk of such a shipment.
So, it seems to me that such an over-the-border haul could be done only on the case-by-case basis, that's when someone has some business down in States and has to go there anyway.
I’d love to hear anyone’s opinion on that.