Accurate DDP quote to new customer based in Kentucky USA

Question posted by Mike Ashforth, on behalf of Tagattach Limited in EH54

We have a new arrangement to supply a customer who are going to distribute our products in the USA. They have asked us to provide a DDP quotation which will form part of the agreement to supply. The products are safety devices known as Taglines for the construction, offshore drilling, shipping and railroad industries. Will there be duty to pay either at the UK end or once the goods arrive in the USA? Total order value will be approx £3000 with shipping costs approx 10% of this.

Posted:
Report inappropriate content

Paul Hickey, on behalf of Mercator Cargo Systems Ltd in PO1.

Hi Mike

There wont be any duty to pay on the UK export, there may be some in the US (I can check with my agent) they also have two taxes at destination (MPF and HMF). In order to quote we'd need to know the size of the shipment (piece count, weights, dims), whether or not you can load at your site, load address, zip code in Kentuky and a tariff code for the goods. You can email this info to me at james@mercatorcargo.co.uk if you would like.

Thanks
James

Posted:
Report inappropriate content

There are two types of DDP one is Delegated Direct Purchasing and the other is Delivered Duty Paid which is the one I hope you are referring to. Under DDP named place of destination, the rule indicates only that the seller must pay any/all duties and taxes applicable in the buyer's country at the time of arrival. Under DDP the seller is responsible for all customs duties and taxes applicable to the goods on arrival in the country. If a customs authority charges VAT at import then the seller has to pay it. Unless the contract states specifically that the Delivery Term is 'DDP' named place of destination taxes (VAT) excluded . To sell correctly under DDP terms the seller must be the importer of record in the destination country

Posted:
Report inappropriate content

to do this they must be registered as an importer with the Customs Authorities be registered to pay local taxes and apply with the increased cargo security regulations. (The use of DDP as a delivery term has never been recommended and one is beginning to see some new problems for Traders using this term).
I am hoping this is the right DDP you are mentioning if not please let me know and I will give you an explanation for the other use of DDP. I hope this is of some help.

Rosa

Posted:
Report inappropriate content

HMRC Advisor, on behalf of HM Revenue & Customs in G67.

Currently there are no export taxes, duties or levies in force on goods being exported from the EU.

HM Revenue & Customs
Customs International Trade & Excise
www.hmrc.gov.uk/contactus

Posted:
Report inappropriate content

To respond to this question, please Login or Register