This is actually an upgrade on PayPal's part. They will not show shipping at the beginning of the checkout process but they WILL always apply your shipping costs. Once the buyer has confirmed their location before completing checkout, PayPal will double check your settings and apply the appropriate cost for that buyer's location.
This alleviates an old problem where a buyer might try to change their shipping location at checkout, previously we had to lock that information in and it could cause problems for people who mistakenly gave us the wrong location in the shopping cart. With PayPal double checking your shipping settings the most accurate cost will always be applied.