Being a native of the True North Strong and Free; I can tell you it is ok but not without some pitfalls. I have bought about 30 knives from the USA and have yet to have one not show up. (touch wood) I have had roughly 30% inspected by Customs and all have passed.
If you are sending an 'auto' and you are caught, it will be destroyed and the Canadian will be out of pocket.
If you send it USPS Express, it usually takes about a week to arrive and get through customs. I suggest if it's totally legal and legit; declare it as a knife. Camp Tool gets just as much scrutiny as a folding knife. Declare it as a "gift" so we don't get screwed by our over zealous Canadian Customs. They will want to tax it. If you send it by UPS - the trader will be screwed by huge customs fees and tax.
Another thing, if there is an exchange of postal money orders; recently a contact of mine in Salt Lake City had his bank tell him that my postal money order looked like a 'fake'. WTF! I bought it at a Canadian Post Office; how would a banker in SLC know it was a fake; give me a break.
So go ahead, we are nice people, we pay our bills and we have a need for steel too.