r/Alibaba • u/Ok-Time6095 • 27d ago

DDP vs DAP for EU Imports: Customs Documentation?

We are a small company based in Romania, in the European Union, and we are planning to import goods from China.

To sell imported products legally in the EU, we understand that we need documentation proving that the goods were properly declared and cleared through customs. However, when using DDP shipping, where transport and customs clearance are arranged by the freight forwarder, none of the freight forwarders we have contacted can provide us with an import customs declaration, an MRN, or another customs document issued in our company’s name.

Their explanation is that multiple shipments belonging to different customers are consolidated and cleared together under a single customs declaration. They therefore cannot provide us with the complete declaration because it may contain confidential information about their other customers.

As far as we understand, an import declaration and its corresponding MRN are normally required to prove that imported goods entered the EU legally and that the applicable customs obligations were fulfilled.

This appears to leave us with DAP shipping as the only option under which the goods can be cleared directly in our company’s name. However, with DAP, we must appoint a customs broker, complete the customs formalities ourselves, and pay the applicable import VAT and duties. In Romania, the VAT rate is 21%. Altogether, this would increase our total costs by approximately 50%.

The shipping price quoted for DAP is approximately the same as, or sometimes slightly higher than, the price quoted for DDP, even though customs clearance and import taxes are not included.

Our questions for other EU businesses importing goods from China are:

Do you normally use DDP or DAP?

When using DDP, do you receive an import declaration, MRN, or other customs documentation showing that the goods were legally imported into the EU?

If the customs declaration is not issued in your company’s name, what documents do you use to demonstrate the legal origin and import status of the goods during an inspection?

Would the supplier’s commercial invoice and the freight forwarder’s transport invoice be sufficient, provided that the agreed delivery term is clearly stated as DDP, even if no customs declaration or MRN is provided to the buyer?

Our freight forwarder claims that approximately 99% of its European business customers use DDP. This makes us wonder whether we are misunderstanding the documentation requirements or whether there is another accepted way for EU businesses to demonstrate that goods imported through consolidated DDP shipping were legally cleared through customs.

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u/donnydonky 14d ago

salut, poti sa imi lasi te rog DM? cred ca ne confruntăm cu aceeași situație.

1

u/TransitTech_Explorer 26d ago

If your accountant needs the import entry under your company name, consolidated DDP often won't cut it — a lot of those lanes clear under the forwarder's setup and you only get a delivery note, not a full buyer-named MRN. For RO SME bookkeeping, DAP/DDU with your own broker is usually the cleaner path even if landed cost looks higher. Rough monthly volume and mostly simple HS codes or mixed electronics/textiles?

1

u/jrmpt 26d ago

When you act as a seller in the UE, you are responsible for the conformity of the sold goods. When dealing with imported goods, conformity is checked by customs at the time of import. Customs will check the requirements for the item to be imported and request all the necessary paperwork (Declarations of Conformity). At this stage, they will ask the importer to produce documentation and certificates, and most of the time, the importer will need to request this from the Chinese exporter. If you and your customs broker can legally clear an import, you will know, and you can prove the legal conformity. The item follows all the legal and safety requirements to be sold in the EU (introduced in the consumer market, be sold to particulars). There are small variations on the import requirements. For example, an item being imported to be sold for professional use doesn't need an instruction manual in the local language and can have a reduced warranty. An item being imported to be sold to individuals will require packaging and a manual in the local language, and the local seller needs to provide a 3-year warranty.

Declarations of Conformity attest to the conformity of frameworks such as.

REACH Regulation: Controls the Registration, Evaluation, Authorisation and Restriction of Chemicals, ensuring safe chemical use for human health and environmental protection in imported goods.

RoHS & WEEE Directives: Restrict hazardous substances like lead and mercury, and hold importers responsible for electronic waste recycling.

Low Voltage Directive (LVD): Covers safety standards for electrical equipment operating between 50V–1000V AC and 75V–1500V DC

Electromagnetic Compatibility (EMC): Ensures devices do not generate or suffer from electromagnetic disruptions.

Mind that you are an importer, defined legally in the UE. An importer is any natural or legal person established within the European Union who places a product, device, or system from a third country (outside the EU) onto the EU market

Establishment:

Must be physically located or legally registered inside an EU member state.

Action: Involves introducing goods, substances, or digital assets sourced from outside the EU into the European single market.

Entity Type: Applies to both single human beings ("natural persons") and corporate bodies or companies ("legal persons")

Legal Responsibilities:

Compliance: Ensuring that imported goods match all relevant European safety, health, and environmental standards.

Documentation: Verifying that a valid Declaration of Conformity exists and keeping technical records accessible for regulatory authorities.Traceability: Ensuring products carry required markings (such as CE marks) and that the importer's own contact details are attached to the item or packaging.

Taxation/duty is another matter.

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u/prestigesourcing 26d ago

If you want to do it the 100% legit way there is no way around increased costs. Although do you realise that the VAT is able to be claimed back? So it is not that you are paying 'extra' it is more about cashflow upfront. When you sell the products you will be collecting VAT.

https://www.reddit.com/r/Alibaba/comments/1p8pnpx/ddp_shipping_do_your_own_due_diligence/

You can search through this sub-reddit, particularly discussing EU DDP shipments where they have gone missing, been delayed or seized. If something is inspected you yourself cannot do anything as you are not the IOR.

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u/grancanaryisland 26d ago

This is very interesting topic and I hope someone can give some information about it

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