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Acta Universitatis Bohemiae Meridionalis

The Scientific Journal for Economics and Management

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International Delivery Risks: The Case of Delivered Duty Paid in Australia

Roberto Bergami
Published Online: 2016-12-23 | DOI: https://doi.org/10.1515/acta-2016-0005


The choice of delivery terms in international contracts has significant impact on both physical and financial risks for importers and exporters. This paper considers implications resulting from a recent Australian tribunal case involving transactions based on Delivered Duty Paid (DDP) terms (Incoterms). This case highlights how importers may become exposed to unexpected financial penalties caused by incorrect processes from foreign suppliers that result in duty and taxation payment shortfalls. The discussion focuses on the risk elements related to DDP for importers and the interpretation of legislation and policy documents. A chronological timeline of events is provided to explain the changes in policies and interpretation related to ownership as defined by Australian customs legislation. The conclusion is that, due to customs considerations and the decision of the tribunal in this case, DDP may no longer be a viable option for international trade transactions, not only in Australia, but also in other nations.

Keywords: international delivery terms; delivery risks; customs policy; fraudulent invoices; incorrect customs declarations; Incoterms

JEL Classification: K12


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About the article

Published Online: 2016-12-23

Published in Print: 2016-06-01

Citation Information: Acta Universitatis Bohemiae Meridionalis, Volume 19, Issue 1, Pages 1–9, ISSN (Online) 2336-4297, DOI: https://doi.org/10.1515/acta-2016-0005.

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© 2016 Roberto Bergami, published by De Gruyter Open. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License. BY-NC-ND 3.0

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