Help! DDP China to UK import.

[sd0906]

I'm about to confirm my second order on custom made items via alibaba from China to the UK. My first order was last year on FOB terms, so i organised my own shipping via Shippo and paid the VAT and Duty charges through them.

I am now ordering from a different company who are offering DDP terms at a very tempting price (saving me approximately £500 over organising my own freight forwarder and paying their relevant customs charges in China). My seller assures me that all customs, taxes and VAT are included in both countries and the goods will be delivered to my address in the UK. I'm wanting to go ahead with the DDP terms, but want it clearly written in our contract that it covers UK VAT and Duty tax. Any help/advice in what i need to be asking for to make the request absolutely clear?!! Thank you.

 

[MOIC]

I am now ordering from a different company who are offering DDP terms at a very tempting price (saving me approximately £500 over organising my own freight forwarder and paying their relevant customs charges in China)

If you've done your due diligence on the supplier, approved the shipment with a quality control inspection, then you should be aware that you'll not be able to reclaim any of the VAT & Import Duty (unless they provide you with the required forms confirming VAT & Import Duty has been paid to HMRC). Speak to your accountant and see if he approves this.

 

[Import Expert]

I'm about to confirm my second order on custom made items via alibaba from China to the UK. My first order was last year on FOB terms, so i organised my own shipping via Shippo and paid the VAT and Duty charges through them.

I am now ordering from a different company who are offering DDP terms at a very tempting price (saving me approximately £500 over organising my own freight forwarder and paying their relevant customs charges in China). My seller assures me that all customs, taxes and VAT are included in both countries and the goods will be delivered to my address in the UK. I'm wanting to go ahead with the DDP terms, but want it clearly written in our contract that it covers UK VAT and Duty tax. Any help/advice in what i need to be asking for to make the request absolutely clear?!! Thank you.

It it is true DDP then yes everything should be covered. Just ask for clarification on the VAT though as this can sometimes be a grey area (although it is very black and white in reality there are some 'unofficial' variants'). If they are accounting for the VAT then the seller will need to be the importer of record, not you.

 

[嘉诚国际TIMI]

如果您对供应商进行了尽职调查，通过质量控制检查批准了装运，那么您应该知道您将无法收回任何增值税和进口税（除非他们向您提供所需的确认已向 HMRC 支付增值税和进口税的表格）。和你的会计师谈谈，看看他是否同意这一点。

yes DDP double customs clearance includes tax to door, and the freight forwarding company is responsible for customs clearance. We will not provide relevant information because our company is the freight forwarding company responsible for transporting from China to the UK.

 

[Paul Kelly ICHYB]

but want it clearly written in our contract that it covers UK VAT and Duty tax

Whilst I am sure they will be an Ok supplier, what happens if they haven't covered these costs? Can you afford to additionally pay repeat costs?

The only way to guarantee those terms is to pay via a letter of credit with payment based on signed delivery to your premises.