I find this the best way to ship internationally with PayPal for non-eBay transactions. I send the chips in a small parcel using First Class International Mail, and I get the reduced rate and free tracking (via the Customs number).

First, I have the customer PayPal me the payment for the chips or whatever he is getting from me.
Second, I run my standard eBay listing for cases like this: a poor-condition common poker chip for $15 buy-it-now or "Best Offer,"with free shipping. I have the customer offer $1 for it. I accept that. He then buys it for the $1 and PayPals me the $1.
Third, I go to My eBay (NOT my PayPal page) and print the shipping label-customs label. (I have to edit the form some since I am sending off the "valuable" chips, not the $1 common poker chip).

I have done this successfully and easily many times. It ends up coating you less than $1 extra, but is worth it. Two simple things to remember: (1) make sure that the person sending you the $1 is from the same country as the person receiving the chips (of course, they will usually be the same person); and (2) click the link in ebay (like on your My eBay page), not your PayPal page, to generate the shipping label.

Robert