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Strangely, your logic doesn't apply when an American buys any book (or a car) which he could bring into Canada with him and use here. It is true which is easier for Canada to assess such items at the border in comparison with cyberspace, however i know of no cases of Americans being taxed on the books or cars they bring these people when these are to stay in Canada for as much as half crocs jibbitz 2010.
design crocs charms that the Canadian customer has obtained a book of from your Canadian internet business. Your drop ship supplier is perfectly found on the United States and is registered for G.S.T. You fax your order to your American company, and they, in turn, ship croc pins in an effort to for you (complete with Customs Declaration and their G.S.T.
In Canada, exports are "zero-rated" sales for .S.T. purposes. This means that when you ship merchandise to someone outside Canada, you don't charge T.S.T. Yet, you get to claim (or deduct out of your G.S.T. collected by you) all the "input tax credits" (G.S.T. that you paid for business purposes) to make that move. The idea, I suppose, is to encourage transferring.
