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I have the same situation. I have sent 700 USD hardware to Denmark. After customs clearance the customer had to pay duty, but he declined. He opened dispute "“item not delivered”. Tracking shows "The shipment was refused by recipient". We have sent to PayPal all tracking information, shipping policy ("customer is responsible for all customs duties and fees", email conversation with customers (where he declines), screenshots of fast order processing and shipping. The order was "Protection eligibility: Eligible / Protection eligibility type: ItemNotReceivedEligible".
http://www.postnord.dk/en/track-and-trace#dynamicloading=true&shipmentid=EP038799015RU
PayPal resolves on favor of customers and made full refund.
I am upset by the decision because I read about old similar cases and PayPal always have protected sellers from dishonest customers.
It appeared to be very simple to damage international sellers with buy-chargeback-buy-chargeback tactics. We consider to ban such countries as Denmark or leave PayPal at all. We just cannot afford a loss 700$ for one sale.

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