Mike, you can always challenge what the Customs & Excise are charging you because the guy who is doing the pricing does not work to the set rules. If you were charge £200 + the item you received must be worth over £3000. The Customs are only allowed to charge you VAT at 17.1/2% & on the price that is put on the back of the Customs slip; or, if there is a bill inside, they will charge you on that.
My tip if you buy from the US or Canada, ask them never put a bill inside - get them to email it to you &, on the Customs slip never put more than $50 US or Canadian dollars. As for the 'gift', this is like a red-rag to a bull; the customs love to see the word gift on the back & are more likely to check the package.

and yes the royal mail is a 'rip off' charge.


Peter