To DDP, or not to DDP, that is the question
The world is getting smaller and this is true for internet shopping (B2C) too, but is the consumer getting a raw deal?
The doorbell rings and your package has arrived – you got a great deal online and have been eagerly awaiting the delivery. But before you can get your hands on it, the courier explains to you that you have to hand over cash to cover import taxes. “But I’ve already paid the shipping and I’ve got no cash on me!”, you protest. The couriers card machine isn’t working and he’s not in the mood – this is a regular occurrence for him.
If you’re looking to expand your business to overseas consumers and expect repeat sales, make sure they know what it’s really going to cost them and even better include all the costs at checkout.
For B2C (Business-to-Consumer) companies around the globe, striving to provide the best possible service to their customers, should they be looking to sell their products DDP?
DDP – Delivered Duty Paid (all costs and responsibilities are with the seller/shipper).
Taking The Stress Out Of Classification
You would think that anti stress balls and shapes would be easy to classify and would probably fall under the same tariff code. However when classifying goods it is important that you read the Explanatory Notes in the WCO Harmonised System and also any Explanatory Notes issued by the customs authorities. A good example is anti stress balls and shapes. According to the EU Explanatory Notes those shaped as balls are classified in a sports/exercise heading 9506.69 while those in shapes such as animals are classified as toys in 9503.
TariffTel™ takes all notes in to consideration when classifying goods enabling you to classify your products stress free.
Classify reusable containers separately
Around this time of year many companies are placing orders for their Christmas range of products. Many of these products will be in the form of gift sets comprising a reusable container containing a product such as a set of socks etc. It is important to note that the classification rules state that such reusable containers should be classified separately from the products stored within. Follow the rules and quite significant duty savings can be made. Let’s take a look at a sock set stored in a steel tin. 12% duty may be payable on the socks and only 3.20% may be payable on the reusable tin with a possible saving of nearly 9%. If you are importing these types of products in high quantities ensure you obtain the actual value of the container and declare them separately.
TariffTel™ can assist by splitting products into sets and you or your vendor can easily allocate actual values of the container and its contents. Contact us now to find out how we can help or to arrange a demonstration.
Obtain all the ingredients to correctly classify mixing bowls
It is vitally important to obtain as much information as possible in order to correctly classify the importation of mixing bowls and other kitchenware.
Ensure that your purchase order descriptions include or you obtain, material of manufacture, country or origin, country of despatch and in some instances the construction method. These main “ingredients” will determine whether your mixing bowls will be liable for 0% import duty or as much as 11% and can fall under any one of over 20 different tariff codes.
TariffTel can not only assist with the classification of mixing bowls but also 7000 other kitchen products.
Customs Compliance in partnership with HMRC
We are pleased to confirm that TariffTel will be a premium exhibitor at C5’ 6th Advanced Forum on Customs Compliance being held at the Grange City Hotel, London 19/20th November 2013.
Held in Partnership with HMRC to discuss the latest changes happening to customs regulations and what you can do to minimise the impact on your own company.
Come and visit us to view and arrange your demonstration of TariffTel, the customs classification tool that can improve compliance and accuracy while reducing costs, and your chance to win an iPad mini.