21/03/2019 15:43:13
If UK Business are on DDP terms with an EU supplier can UK business still use TSP and be the importer of record and pay any duty that is due?
a. If UK business does this would it have to invoice the duty back to the supplier?
b. If the supplier is a sister company does this impact this transaction apart from meaning transfer pricing policy would need to be adhered to?
  • HMRC Admin 50
  • Joined: 21/06/2017 15:34:03
  • Messages: 1592
  • Offline
  • View profile
  • Send message


04/06/2019 12:23:45

Thanks for your question.

To be eligible for TSP, traders must:

• Have a UK EORI number

• Be established in the UK, which means:

o You’re a sole trader who is resident in the UK, or

o Your company or partnership has a registered office in the UK, or

o Your company or partnership has a permanent place of business in the UK where they carry out their business activities, and

• Be importing goods from the EU into the UK

Traders registered for TSP can employ the services of an intermediary who can complete the declaration directly on their behalf, but the TSP-registered trader would have to meet the TSP establishment requirements themselves.

Furthermore, if TSP registered traders have customs duties, excise duties or import VAT to pay, they’ll have to have a duty deferment account. A duty deferment account allows you to pay your customs duties, import VAT and excise duties monthly by direct debit, rather than immediately each time goods clear through customs. Traders will not need a deferment account for import VAT if this is being accounted for on a traders VAT return.

DDP (Delivered Duty Paid) is a commercial term meaning that the shipper (exporter in the third country) will cover any import duties and deliver the goods duty paid. This is a purely commercial decision, and not something HMRC is involved in.

Please note, this information is correct at the time of writing, however the position may change before the UK leaves the EU.

You can keep up to date with developments on GOV.UK and register for email updates here:

Subscribe to GOV.UK notifications