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It depends. If the seller ships it without indicating the contents, it may very well come direct to you, duty free, tax free.
If Canada Customs is suspicious of the package or the seller marks it "Omega Watch - value $1.200" or whatever. look-out!
You will be nailed 7% GST, plust any duties Customs deems appropriate based on the value of the watch, and can add "Luxury Tax."
I recommend asking the seller to NOT mark the package. 99/100 times the packages just pass right through, unless of course, you actually enjoy dealing with Canada Customs. Another alternative is to rent a p.o. box in a a U.S. border town, if you live near the U.S. border and have it shipped there. Simply drive down there and pick it up when it arrives.
Far be it for me to suggest however, that if you do that, and inadvertently put the watch on your wrist and simply forget to tell Canada Customs about it upon your return....
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