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Posted Wed, 23 Nov 2022 09:10:11 GMT by Stuart Grant
Good Morning my company has a shipment coming in from the EU that has been shipped DDP The courier "Davies Turner" is stating the "I" the receiver is still liable for the VAT ? I was under the impression via DDP the shipper was responsible for the VAT and i need to pay them or put provide my deferment details to cover the VAT.. we have no issues with other couriers and shipments clear without issue any feedback would be appreciated Best Regards
Posted Wed, 23 Nov 2022 13:04:57 GMT by HMRC Admin 10
Hi
I can only assume that the seller has agreed to pay any duties chargeable but not the import VAT.
If this is the case then the VAT would need to be paid unless the import has been processed under Postponed Vat Accounting.
If it hasn't and you are named as the importer of record then you will receive a C79 certificate which will allow you to recover the VAT if you are Vat registered.
Thankyou.
Regards.
Posted Thu, 24 Nov 2022 13:17:47 GMT by Ewa123456
Good afternoon. I am a bit confused with defining the following: From the legal point of view who is the named importer under DDP? I come across with different situations - sometimes on import declaration it is the seller and sometimes it is the end customer. Is there any guideline to this? Thank you in advance for explanation.
Posted Thu, 24 Nov 2022 20:29:26 GMT by Customs oldtimer
Hi It will depend on whether you have agreed true DDP Incoterms ( so actually says Incoterms DDP ) with your supplier. The responsibility of buyer and seller is written in the official ICC Incoterms guide. The seller is then responsible for the import declaration and handling import duties and taxes. They will need at appoint a customs agent to act as indirect representative and be the named importer. In practice it is very difficult to find a customs agent who acts on this basis so the recipient is often named as the importer. The seller will pick up any duty costs but the import VAT is picked up by the recipient especially if they are VAT registered. So DDP Incoterms excluding VAT. Putting DDP without also saying Incoterms means there is no definition so the three letters are open to interpretation. Outside of true Incoterms many of the parcel carriers have what they refer to DDP “service”where the seller agrees to pick up the duty but again the recipient is named as importer. Irrespective of who physically pays the duty only the person named as importer is legally responsible for the customs debt. Therefore HMRC can ask them for additional duties if say the goods are found to be undervalued or the wrong duty was applied up to three years later. If you are agreeing DDP Incoterms with your supplier I suggest you clarify with them exactly what they mean and ensure that the customs agent is instructed who should be the importer.
Posted Mon, 28 Nov 2022 10:50:52 GMT by HMRC Admin 17

Hi,
 
I would advise contacting the Customs and International trade helpline on 0300 322 9434 with your query or

email cds.operations@hmrc.gov.uk .

Thank you.

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