First let's get our terms corrected.
You bought from a SELLER. He uses a SHIPPER to carry the goods to you.
We bought the item but noticed that he charged us $70 US for shipping. we asked him to adjust the shipping but he refused.
You noticed this before or after you had made the purchase?
The time to negotiate on shipping costs is BEFORE buying. Once you have agreed to buy, eBay will stand behind the seller's terms, no matter how egregious they may seem to you.
You agreed to the S&H. You paid the S&H.
and marking the package a gift, valued at $10.00. instead of its real value of over $450.00. Isn't that fraudulent by US standards?
Yes.
And the person most likely to be hurt by it was the seller.
If the parcel was lost in the mail (unlikely ) or damaged in transit (rare but does happen) the insurer would only cover him for the $10 he valued the parcel at, not the $450 he charged you.
And you would be covered for your cost on the lost or damaged parcel by eBay Buyer Protection.
It would be unusual for such a fraudulent statement to be caught by either Canadian or US border authorities. However, again, the fault would rest with the seller, not with you.
You do not mention if the purchase was made through the Global Shipping Program. If it was, that $70 may include the Canadian duty and more importantly sales taxes as well as a small ($5 or so) service fee to Pitney Bowes who run the program.
If he sent it directly to you, without the GSP, you must not have been assessed by Canadian Border Services for duty and sales tax nor for the $10 Canada Post service charge for collecting those fees on your doorstep. Count your blessings on that.
Your methods of revenge for a fee that you agreed to and paid would be feedback and ratings. You could also contact US authorities about his interesting valuations of exported goods.