This was unfortunately a problem for some international pledgers in the "Absolute Treasure" campaign (almost exclusively in the UK...we received almost no complaints from any other nation). The answer is that it will be dealt with this time the same way it was during the last campaign, meaning that we'll be adhering to US Postal regulations. That means we can't refer to packages as "gifts," because from a legal perspective, they're not...they're merchandise and we are required to list as such on customs forms. The same goes for value...we have to indicate the provable value (which is defined as what we charge for the item, not what it costs us to produce or some ficticious number) on the forms. What we don't include is value of intangibles...so if you purchase a cover package, the customs form will only indicate the value of the enclosed discs, not the full price of the package.
We know many of you have dealt with others on Kickstarter or elsewhere who handle the customs reporting differently. We can't speak to what or why they do what they do except to assure you that we have carefully reviewed the relevant US Postal regulations and are certain that the way we are handling it is what is required of us to be operating within the law. Violating this is a Federal crime in the US and while we love you all more than you'll ever know, it's not enough to make Valentine feel OK about paying hefty fines or doing some time. Again, we're sorry for those of our foreign friends (particularly those in the UK, since that seems to be the locus of almost all the trouble on this front) who are frustrated by this, but we wanted to provide you with fair warning that if your package is stopped by customs (many sent to the UK were not, btw), you may be assessed fees.