Contract Customs Duties

Contract Customs Duties is not a standard term in international trade. It usually refers to the responsibilities, cost bearing, or tariff rates related to customs duties explicitly agreed upon by the buyer and seller in a contract. It may involve: 1) agreeing that the buyer or seller bears import duties; 2) agreeing to apply a specific tariff rate (such as a preferential rate); 3) agreeing on a price adjustment mechanism when tariffs change. Usage scenarios are mostly seen in long-term supply contracts, processing trade, or transactions under free trade agreements. Note: This term is easily confused with 'Customs Duties', which is a tax levied by customs according to law, while 'Contract Customs Duties' is a contract clause and cannot change the statutory taxpayer; if it is agreed that the seller bears import duties, it is necessary to clarify whether the seller has import qualifications and responsibility for declaring the dutiable value. Difference from 'DDP' (Delivered Duty Paid): DDP is a trade term stipulating that the seller bears import duties, while 'Contract Customs Duties' is a specific contract clause that can exist independently of trade terms. It is recommended to clearly specify in the contract the party bearing tariffs, the basis for tariff rates, and the risk allocation for exchange rate fluctuations and policy changes.