We have had problems recently trying to sell Delivered Duty Paid (DDP) to a number of countries. Do you have a list of countries that don’t accept DDP shipments?
I am not aware of a comprehensive list of countries that don’t accept DDP shipments as all countries will accept these commercial terms as long as you can meet the required import regulations and criteria. The issues you are facing are because DDP (as laid down in the Incoterms® Rules 2010) do not only make the seller responsible for paying customs duties, but state that the seller should be the Importer of Record (IOR) in the destination country and also pay all relevant taxes due at the time of import.
It is not always possible for a foreign business to become the IOR. Countries where this causes issues include the USA and South Africa, but many countries, including the EU, require the importer of goods to be registered with a relevant government authority (in the EU this registration is under the EORI system) and often the importer needs to have a physical presence in the country as well.
You may find that for some countries your freight forwarder may act as your representative and charge back the duties and taxes, but you will need to determine this on a case-by-case basis. Different systems/regulations may also be in place according to the type of goods involved as some goods need to be registered and approved prior to import, eg pharmaceutical products or foodstuffs, or need to be specifically licensed, eg military goods or chemicals.
If you are serious about trading under DDP terms then you will have to carefully investigate the importer regulations and registrations required in each of your export markets. I recommend you look at trading under a different Incoterms® Rule, such as Delivered at Place (DAP) which means your customer will always be the IOR.
Source – Croners Wolters Kluwer Business
It’s imperative that all employees within an internationally trading company have a clear understanding of using and applying the Incoterms® 2010 rules to suit their business needs. Update your knowledge of Incoterms at our next Training seminar taking place on the 25th October 2017.
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