A happy update.
I have finally received the lost items!
Early this month the USPS managed to trace the whereabout of the items and resent back to the sender. It was unclear what went wrong but apparently the main reason I gathered from the communication was due to the custom declaration form was lost and the package was not shipped but sent to 'Dead mail center'.
To make sure it was not lost in the mail again I requested the auction house to resend to me using fedex (which I had to pay additional shipment fees) and it duly arrived last week.
To be fair I've not lost any shipment from USPS before and not sure whose fault it was in this case.
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