Customs Support Advises NOT to use the Incoterm DDP
Customs Support strongly advises importers and exporters in both the European Union and the United Kingdom not to use the incoterm Delivery Duty Paid when trading between the European Union and the United Kingdom.
Delivery Duty Paid
When goods are bought or sold “Delivery Duty Paid” (DDP) it means that the Seller delivers the goods to a place previously agreed to by the seller and the buyer. This can be any location. The agreed place of delivery (e.g. Rotterdam, Venlo, etc.) needs to be specifically named. The main difference with Delivery at Place (DAP) is that the seller takes care of the import formalities.
Why NOT Use DDP
It is these import formalities that can cause problems. Before Brexit there were no customs checks, duties, or tariffs when trading between the European Union and the United Kingdom, but now there are. We advise companies to make sure that the company registered and located in the country where the goods are imported takes care of the import formalities. This minimizes delays, unexpected costs, or procedural problems caused by not having a registered entity in the country where the goods need to be imported.
What Incoterm Should I Use?
There are many facets that impact a choice for a specific Incoterm. It depends on the type of goods, the way of shipping them, the country they are shipped from, the country they are shipped to, and many more. If you want advice on what Incoterm would work best for you, please contact one of our specialists. They are happy to look into your specific situation and advise you accordingly. Take the Load Off Your Mind!