Import VAT Issue

[MailOrderCo]

I am a little annoyed at one of my VAT invoices from DHL for importing goods worth $80 which the UK customs took as £80

Now I do not mind paying duty and vat on my goods value at $80, I normally pay duty and vat on the items value, but they have done the following though

Value of goods £80 (invoice in the parcel says 80 USD) so they have basiclly doubled it there
Shipping cost £124.62
Total Value = £204.62 (I did not know postage had value to me)

5% duty rate = another £10.23 on top, + excise duty of £7.12 = £221.97 + VAT of £38.84, + a £10 admin fee means they want £59.07 VAT off me for a £80 item

is this right, it seems rather wrong to me

EDIT: Just spoke to them again, they have agreed I am right, so will get a new lower invoice from them :-)

RANT
If it was £80, Our government is quite clever at making £59.07 on an item that cost them nothing and that was made by someone else in a factory abroad for £80, seems the best business in the UK is the government.
RANT OVER