Can I call Dephra and tell them myself the dog is coming?? I may try...
As far as I know, DEFRA/ARC only deal with pet agents, not owners directly (until you show up to collect your pet). Some airlines (British Airways, whom I used) include the agent's fee in their price. Others (Virgin, Delta, etc) tack it on as extra.
$730 sounds a bit high, though - Virgin quoted me ~£300 as a handling fee on the London end for my 2 pets. This was back in 2009, though, so prices may have gone up.