International buyer refusing to pay unless I mark as gift/low value item

I’ve got an International buyer who is refusing to pay unless I mark the package as a gift or below £40 so they don’t get stung by customs.

 

Any advice on how to proceed?   I’ve been polite and stated it is illegal to do that without even thinking of insurance.

 

Presume I’ve gotta go through the hassle of open a non paying bidder thingy

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