Order returned to sender by Royal Mail

I just had an order returned from the UK. The total value was US$26.98. HMRC charged GBP4.60 in VAT (about 25%) and the Royal Mail charged GBP8 for an international handling fee! The customer did not pick up the parcel (Royal mail ticked the "not called for" option).

I offered to resend if the customer is willing to cover the shipping or refund the goods but not the shipping. I suppose he will only choose the former if the notice was missed or he was away at the time. Has anyone dealt with such situations in the past? If yes, what was the outcome?

Thanks!
BD

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