DDP delivery terms and Brexit
DDP delivery terms and Brexit.
DDP Delivered Duty Paid - means that the seller delivers the goods to the buyer when the goods are left at the buyer's disposal, cleared for import, on arriving means of transport, ready for unloading at the named destination or at an agreed point within that destination, if such a point has been agreed. The seller bears all risks associated with the delivery of the goods to the named destination or to an agreed point within that destination.In the DDP rule, delivery and arrival at destination are therefore the same.
In short, DDP means that it is the seller's responsibility to deliver the goods and pay import duties. This is the only Incoterms rule where the seller is obliged to pay customs duties. Therefore, great care must be taken in the application of these delivery terms.
As the seller takes on the obligation to pay import duties that by law fall on the buyer, a very good way to solve this problem is to register for VAT and EORI in the UK. The seller can then fully clear the goods for import in the UK and the buyer will receive the goods without incurring import duties and taxes.
This is a solution that we use effectively with our customers, who are able to establish themselves in the UK market and thus strengthen their position there by offering their contractors delivery on DDP terms, which is very convenient for the buyer.
We assist our clients through accounting services consisting of VAT and EORI registration, clearing VAT returns and import clearance in the UK. Feel free to contact us: sales@daumanlogistics.pl +48 222 454 333
