DDP Terms: Who Bears the Tariffs and VAT?

A Hungarian customer requests DDP (Delivered Duty Paid), which means you have to bear all the costs of transporting the goods to Hungary, including tariffs and VAT. So the question is:

• How are tariffs and VAT calculated?
  The tariff in Hungary is 5% and the VAT is 27%. These costs need to be calculated in advance and included in the quotation.
• Can the VAT be handled by the freight forwarder?
  Yes! Find a powerful freight forwarder, and they can help you with customs clearance and tax payment matters. But note thatDDP and double - cleared with tax included are two different things. DDP is a one - stop service, while double - cleared with tax included may only cover customs clearance and taxes, not door - to - door delivery.

TipsWhen quoting, be sure to allocate the costs of the freight forwarder, tariffs, VAT, etc. to the unit price to avoid losses.

Certification Requirements: Is CE Certification Enough?

For entering the EU market, CE certification is a mandatory requirement. But in addition to CE certification, you may also need to pay attention to the following points:

• Industry Certification
  HVAC equipment may also require other industry certifications, such as RoHS (Restriction of Hazardous Substances Directive). It is recommended to directly ask the customer to understand the specific requirements.
• Certification Mark
  Ensure that there is a clear CE mark on the product and attach a Declaration of Conformity (DoC).

ReminderIf the customer has special requirements for certification, be sure to prepare in advance to avoid delaying the delivery time.

Customs clearance documents: Is FORM A still needed?

Regarding customs clearance documents, many people will ask:Is FORM A required for exports to Hungary? The answer is: No need!

• FORM A has become history
  Since December 1, 2021, the Chinese customs no longer issues FORM A for EU countries such as Hungary. Currently, only Norway, Australia, and New Zealand still accept FORM A, but it is recommended to give priority to bilateral free trade agreements or RCEP certificates of origin, which have greater preferential strength.
• Customs Clearance Document List
  The following documents need to be prepared for exporting to Hungary:
  • Commercial Invoice
  • Packing list
  • B/L
  • It is recommended to verify through the following methods:(If any)
  • CE Certification Documents

: For goods exported to Thailand, the value - added tax rate isCustoms clearance documents must be accurate, otherwise the goods may be detained or fined.

Packaging Requirements: Is Log Fumigation Enough?

The packaging requirements in Hungary are relatively simple, but the following points need attention:

• Log Packaging
  If log packaging is used, afumigation certificatemust be provided and comply with the ISPM 15 standard.
• Other Packaging
  Non - log packaging (such as cartons, plastics) does not require special treatment, but it must be sturdy and durable, suitable for long - distance transportation.

TipsMark clear shipping marks (Marks) on the packaging, including product name, quantity, weight and other information, which is convenient for customs clearance and receipt of goods.

Exporting to Hungary may seem simple, but it involves many details such as DDP terms, certification, customs clearance documents, and packaging. Only by planning in advance and making full preparations can you avoid pitfalls and successfully secure large orders.