Question regarding customs + duty taxes

When I order items internationally, many sellers always end up writing $10 + gift when they declare the value of the item to avoid customs+duty fees for the buyer.

I'm wondering is the package is not insured for the full amount if the seller does that? What would happen to the seller if the package ended up getting lost or damaged?

I also read that insuring the package and declaration of the value are 2 separate things. Does anyone know exactly how this works? Thanks!

submitted by /u/helicon100
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