This doesn't seem to work on my end.
The category is set up to have no Handling fee:
When checking out, this seems ok -- that is when the form is still blank:
But upon further testing, whenever I enter values to the "City" and "State/Province" fields, the shipping option gets added!
Any pointers how to fix this?
(can't see the images above? Please go to http://imgur.com/a/Z8PDa