Hi .. you can let it go and ship to the buyer if they win (invoice with appropriate shipping) or can cancel the bid and add the ID to your blocked bidder list to avoid a rebid.
Need to set buyer requirements to block bidders from countries not shipped to. Its all here..
http://pages.ebay.ca/help/sell/manage_bidders_ov.html
Can also through requirements , block those without a PayPal account and with unpaid item strikes.