1300 186 629


DDP Transactions & Duty Liability

In a DDP transaction, the overseas supplier is contractually responsible for carrying out all customs formalities and for paying customs Duty and GST.

The Department of Immigration and Border Protection (DIBP) - "Customs" - may make a demand for payment of short-paid duty against any person who is the "owner" of the goods. Given the broad definition of "owner" in section 4 of the Customs Act, in the case of a DDP transaction, Customs is not limited to issuing a demanded for payment on the overseas supplier.

Customs could, for example, issue a demand for payment on the Australian purchaser of the goods. Customs has statutory obligations to pursue the recovery of debts unless it is uneconomical to do so. It is often difficult and uneconomical to recover debts from overseas suppliers. It is therefore possible for Customs to seek recovery of the short-paid duty by issuing a demand on the Australian purchaser. Please be aware that entering into a DDP contract of sale may not exclude you from liability in the eyes of Customs.

If you would like further information or clarification on this matter please contact Paul Watson via paul@tomax.com.au or on 1300 186 629.