Printable Version Delivered, Duty Paid Shipment Regulations Differ for some EU Destinations
As more and more companies seek to make the importation of goods as quick and simple as possible for their export customers, they are making increasing use of Delivered, Duty Paid (DDP) shipping terms. Under such arrangements sellers/shippers undertake to deliver their goods to their destinations fully cleared for importation, and as such take on the obligation to bear all the risks and costs (including duties and taxes) relating to such supplies.
Some EU destination countries, though, do not permit sellers/shippers to arrange customs clearance at destination, and in such cases an importer of record must be established in the destination country. In the case of Denmark, Germany, Netherlands and Sweden, FedEx experience is that buyers/consignees who have ordered products DDP can and will refuse customs clearance being made on their behalf.
Two basic options are therefore available to circumvent such cases:
1 Ship Delivered, Duty Unpaid (DDU)
This option allows for shippers/sellers to pay all costs except those required to meet import clearance formalities and related duties, taxes and other charges payable upon the import of the goods. In this case the buyers/consignees are responsible for all clearance procedures and payments.
2 Ship DDP via an officially appointed local customs representative
This is an especially useful option where VAT calculations or payments are concerned.
Additional special regulations also apply to certain EU countries as follows:
Declaration of place of destination on DDP Incoterm documents
Austria, Czech Republic, Denmark, Latvia, Poland and Romania all require that a named place of destination appears on these documents. If no such details appear, Incoterms will be disregarded.
Declaration of freight costs
Austria, France, Latvia, Lithuania, Malta, the Netherlands and Spain all require that the freight cost and duty and taxes are explicitly quoted on commercial invoices. Once again, if these details do not appear then Incoterms will be disregarded.
FedEx customers are advised to fully verify all local customs and VAT requirements before booking and making DDP shipments to EU destinations. Failure to comply with relevant destination requirements will necessitate the application of different delivery conditions which will not only be less favourable for consignees but may also cause additional charges to be incurred.
For further information, please contact our Customer Service team.