Apple Ipod Touch - Denied Postal Insurance Claim cause banned item India?

Apple Ipod Touch
So I dont know where to turn too.
Embasy of India
US Custom
India Customs
USPS
they all are giving me the run around.
The USPS lost a package I was sending to India. A brand New Ipod Touch.
The guy bought it on ebay I had all the paper work of me buying it on Apple.com..
and all the paper work of it selling on ebay.
I filled out the insurance claim.
I get a notice back saying I was denied because this item was turned away or confiscated by India's Customs.
So I was denied my insurance claim to get my money back for this ipod I shipped to india because india bans this item.
However I cant find anything online about india not allowing this item.
Any Info would be great.
Denied Postal Insurance Claim cause banned item India?

Actually I've got a good idea of what happened.
Ever since that terrorist attack earlier in Mumbai anything that could be considered an "unregistered" cell phone has had a hard time of it in Indian sub-continent.
And, according to the authorities, the iPod Touch is now included in the list of suspect devices.
Someone will have to do the search, right now I don't have time, but the forum has a post by a student who can't use his touch on campus since it's now considered a potential terrorist threat.
The USPS didn't lose the package, it got confiscated under the new "security" rule.
What you do want is for it to be sent back to you ((Or do you?), so work on that one.
At least, if you insured it, if it's not delivered you can eventually get reimbursed and, who knows, the authorities may eventually figure out that an iPod Touch isn't the best thing to use for coordinating a terrorist massacre and quit doing stuff like this.
For now, if the USPS lost track and can't tell you why, then they'll have to pay.

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