Well, after speaking to Ebay and PayPal again, I understood this. If I collect the parcel, PayPal will refund all of the buyers money including postage. Leaving me out of pocket. However, if I leave it there and provide proof, which they have already confirmed, that I sent to the correct address and that the buyer did not pay duties. PayPal will side with me and not return any money to the buyer. Ebay have also agreed with me. PayPal says it is the buyers responsibility to have the parcel sent back to France and to liase with Autralia Post. This is harsh. I do not want the buyer to be out $999. But he has done the wrong thing. And I will be out $200. So if I collect and do the right thing I will lose. This has been thouroughly discussed with PayPal. It is a risk to collect and try to partial refund. If the buyer disputes, PayPal have confirmed they will refund all the money to the buyer including post. Rock and a hard place. And the buyer is still not responding. He may think that he will simply be refunded. Thanks for the replies.
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