As many have stated:
a. No one pays a Customs "(Country Name} Return Goods" duty on this item. So, this is NOT a Customs Duty ($) issue.
b. If you lower the value of this item from $1200 to $50, you may red-flag this shipment at the port-of-entry. Why? Customs agencies collect tariffs, and customs agents are trained to spot items that are dramatically undervalued. If your box is flagged, this alone could hold-up the shipment for months.
c. If you lower the value of this item from $1200 to $50, the world now views it as a $50 item (it is plausible that something happened to cause the value to significantly drop while it was in your possession). Consequently - if the LP is lost or damaged, you are likely to receive $50 in return.
Why? On a really bad day, you may need to send a PDF of the shipping docs to VISA and PayPal, who will not reimburse you above $50, because YOU lowered the items value - leaving you in the position of having lied about the value of the (now $50) LP OR forging the shipping documents - bad either way.
c. On the other hand, if you declare the LP to be worth $1200, you can track it until it leaves the U.S. If it is lost or stolen after it leaves the U.S., it is an issue for the seller. Be certain to keep your shipping/tracking documents.
Be certain to photo-document the reason why the LP is not as advertised. I would also photo-document packaging the LP for shipment (to avoid arguments that shipping-damage was caused by poor packing).
Because the seller misrepresented the item, I suspect that most buyers would be fine forcing the seller assuming responsibility for the issue.
Best of luck with your decision!
