even if you had declared proper value, you will go through hoops and jumps to get that insc. money IMO....

What option did you choose on your customs declaration form if item was undeliverable. Return to sender or trash it...

It could very well be stuck in customs for 90 days and be returned back to you if you chose return to sender.

Customs could have decided a value, and the recipient has just refused to pay the charge, hence the dilemma you are in. And this scenario I suppose, could have played out the same even if you put proper value.

Here's hoping you have chosen ~return to sender~ on you declaration form