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Help: order destroyed by Customs and customer wants a refund

I find myself in a difficult situation and I was hoping for some advice from seasoned e-merchants, such as yourselves.

I run an online store in the UK and recently a customer in Israel placed an order. We promptly dispatched the order and provided the tracking details. Then, a month later, the customer complains that he has not received the order and he wants a refund.

After checking the tracking, it seems that the package reached Israel after only two days and was immediately held by local Customs. It's unclear whether the customer spoke to Customs at that point or only recently (a month later) but they have told him that the package will be destroyed. The reason for this is also unclear.

The customer obviously feels that this is unfair and wants his money back, or for me to send out a replacement order. I feel that my company is not obligated to refund him as we did our part perfectly. I wouldn't necessarily object to sending a replacement order, but I'm concerned that it will only get held and destroyed by Customs again.

What do you think? What should I do? Is my company responsible for the package even when it's in the hands of local Customs?

submitted by /u/TheWouldBeMerchant
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