DDP
SHIPPING
We
cooperate with brokers for customs clearance of import and export cargo.
→Assistance
in obtaining certificates, such as Fumigation/Phytosanitary Certificates.
→Interaction
with authorized surveyors.
→Organization
of public and private warehousing.
DDP in Hungary. How
to clear samples or goods in Hungary under DDPas a delivery basis?
Brief
introduction. DDP (Delivered Duty Paid) is a cargo delivery
agreement (parcels, samples etc.), as per Incoterms 2010. Its main feature is
payment of all customs duties and charges (both export and import) to the
shipper. The consignor (shipper) shall be liable for all risks and expenses
related to transportation and customs clearance both in the country of the
consignor and the consignee. Under DDP terms, title to the goods passes from
the consignor to the buyer at the very last moment, that is, only when the
goods have been delivered to the buyer's warehouse and the latter has confirmed
the receipt of the goods. As a result, the buyer receives the cargo fully
exempt from customs and other charges.
That is,
the consignor (located in UAE, for example) ships the cargo, clears export
goodsthrough the customs in the shipping country, delivers them to Hungary,
arranges customs clearance, and provides delivery at specified place in
Hungary. Due to the legislation of Hungarythere are a couple of aspects, that
are difficult or impossible to implement, we will discuss them below.
Customs clearance
of samples or other goods under DDP as a delivery basis in Hungary.
Typically, DDP terms
are used by non-residents to deliver samples to Hungary. Let's take an
example: at an exhibition in Dubai, two companies signed a contract for the
delivery of samples (spare parts or a small batch of any goods) from China to
Hungary. However, the consignee in Budapest does not want to spend money, time
and other resources on customs clearance, and cargo delivery to the warehouse.
The recipient has several reasons, perhaps the samples won't prove to be of good
quality, no one will order any, and the effort is wasted. So, what does our
Chinese friend have to do? He should use a DDP delivery. According to Hungarian
law, only EU residents can pay off customs duties. Here comes the most
interesting thing, how the Chinese supplier shall clear the samples in
Budapest, if he cannot even pay the duties?
No doubt,
the most reasonable way is to use the Universe Access KFT services, because in
any case, customs clearance requires assistance of company-resident of Hungary
or the EU, which will advance the interests of the Chinese supplier on behalf
of the customs representative.
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