DDP Shipments

Article By Newsletter on 16-02-2015

DDP Shipments

The Australian Customs and Border Protection Service (ACBPS) have release ACN 2014/50 relating to Delivered Duty Paid (DDP) transactions.
Under a DDP transaction the supplier of the goods is contractually responsible for the payment of duty and GST.
The previous position of the ACBPS was that the supplier was responsible for the liabilities related to payment of duty and GST.
ACN 2014/50 has now changed that position and the ACBPS are using the broad definition of “owner” under section 4 of the Customs Act to pursue the importer for any short payment of duty or GST under a DDP transaction.
If you are purchasing goods under DDP terms then you will now be held responsible for any liabilities relating to the payment of duty and GST.
We would recommend that you review any current DDP purchases with a view to amending the terms to DDU/DAP.
Should you have any questions please contact your local CFL office. A copy of ACN 2014/50 can be view by clicking here