^^I think the OP had it shipped in VA, not DC.
ETA: OP,
Where was the item being shipped to? Usually when an item I ship is held up in customs, I can call the 800 number and they will transfer me to an international call rep and from there they can start an investigation to locate the package (you give them your email/phone number and they will contact you once they have further information, usually takes 24-48 hours) or find out what the reason is for the hold up. Sometimes the item is being held for a reason like they want to make sure it was a return or if it was a purchase they want an invoice so they know what custom fees to charge, stuff like that.
When it gets there, I don't see why Paypal wouldn't reopen the case. You would have proof it was returned within the 30 days and you have no control over customs.
This is an interesting read. I just don't get why Paypal orders one buyer to destroy a clearly authentic $10000 Hermes, but destroy a horrible, fake bag! It makes no sense. I want answers!