Immerse yourself in the universe of international trade is as setting off to explore unknown territories full of opportunities and exciting challenges. The option to import under the term DDP (Delivery Duty Paid) seems to be the easy way to shift the costs and risks to the supplier. However, we constantly with imports poorly executed that demonstrate the significant risks associated with this type of operations, especially when done in a fraudulent manner, requiring attention to detail.
The Latent Risks of Imports DDP
It is important to make it clear that the incoterm DDP is totally legal and acceptable. The crux of the matter is not in the incoterm in itself, but in the way that some forwarders to handle the DDP. The exposure to the risks inherent to these imports highlights the need to thoroughly understand before you dive into these transactions.
The fraudulent declaration of values at the customs are presented as a main risk, where some providers are trying to evade taxes by providing incorrect information. This behavior not only involves financial risks, but can also have legal consequences.
The manipulation of tariff codes (HS Code) add another level of risk. The incorrect assignment of these codes can allow providers to avoid inspections and evade tax payments, leaving the importer in a situation demanding from the legal point of view.
In addition, the possibility of falsified documents, such as commercial invoices and packing lists, adds an additional risk. Present incorrect information can trigger complications in both financial and legal, underscoring the pressing need to adopt ethical business practices and transparent.
What is the reason to perform this type of fraud?
The answer to that question is pretty obvious: get Money! Those freight forwarders that offer DDP prices irresistibly low and, in addition, it prevents comply with the established regulations, tend to lead to practices that reduce the value of the goods, shipping and handling tariff codes. All this with the aim of circumventing customs controls on goods which, otherwise, would be subject to rigorous regulatory requirements.
The implementation of DDP fraudulent means, in essence, the submission of incorrect or misleading information in the customs documents. This has the purpose of evading taxes, and separated from financial responsibilities. Although some individuals may see this strategy as a clever way of reducing costs and increasing profit margins in the short term, the benefits obtained are dissolved faster than the light at the end of a party.
In addition, we stumbled upon the variant of entrepreneurs who, by ignorance and bad practices on the part of the freight forwarder or supplier, they believe that they are carrying out a legitimate import. In reality, you will not get the Single Customs Document (DUA) import, which can result in significant complications for your business.
In this maze of dubious practices, the importance of understanding the implications and associated risks is vital. So, the next time you're faced with the temptation of a DDP that seems too good to be true, keep in mind that the risks and legal consequences can be considerable. Don't let the prospect of short-term saving, you lose sight of the long-term implications for your business.
Strategies for an Import Successful
To mitigate the risks associated with imports DDP, it is crucial to take solid strategies and ethical, in addition to being informed about the rules and put in the hands of qualified professionals. Here, we present key strategies to ensure an import successful:
Careful selection of Suppliers
Before you dive into the exciting world of imports, take the time to research and choose vendors you trust. Check out their background, collect recommendations and searches to fund its reputation. If a provider or your freight forwarder will offer the DDP, be sure to get the Single Administrative Document (SAD) import and prepare to comply with the corresponding payment of VAT and duties. Safe passage is a successful step.
Conditions Detailed in the Purchase Order
Clarity is the key. When you specify your order details the values and provides accurate descriptions of the merchandise. You can even avail yourself of models of service contracts are available online, adapting to your specific needs. At the end, a contract is well defined can be your best ally. Make sure that the provider or freight forwarder will return a signed contract and clearly specify all the considerations.
Strict compliance with Customs Regulations
Don't underestimate the power of knowledge. Familiarize yourself with the customs legislation in both the country of origin and the destination. A deep understanding of the regulations, it is essential to avoid headaches and legal to ensure that your operation will be done without mishaps. Yes, it can be a topic a little dense, but there are tools such as the tariff code and the platform Taric of the European Union, which can pave the way and ensure that your codes HS match with the reality.
The realization of DDP fraudulent it may seem tempting to some, but the associated risks are enormous and can have devastating consequences for those involved.
Instead of looking for shortcuts that are risky, it is advisable to opt for ethical business practices and legitimate. Forwarding agents and professionals in logistics have the responsibility to operate in a transparent manner, to comply with customs regulations and to ensure the integrity in all business transactions.
If as a reader you find yourself with questions or concerns about the import, logistics and regulatory compliance, please contact us. We have extensive experience with years of import successful, and regulatory compliance. We are here to provide expert advice, answer your questions and help you navigate safely and successfully in the complex world of international trade.
In Together Comply we are proud to offer consulting solutions, ensuring that our clients comply with all rules and regulations. Trust in us to facilitate your importing process in an ethical, efficient and successful.
