France's customs shake-up, effective 1 January, has significantly impacted UK exporters using France as their EU entry point. Under the new rules, UK companies shipping on DDP (Delivered Duty Paid) terms can no longer use a fiscal representative's VAT number and must register for VAT in France themselves. This has prompted many to reconsider their customs clearance strategies.
Gareth Godber, head of UK at Groupe BBL, told The Loadstar that the main challenges include obtaining a French VAT registration and managing monthly filings. Many businesses have shifted from DDP to DAP incoterms. BBL's solution centres on DAP Regime 42, where the company represents the EU importer instead of the UK exporter, allowing clients to clear goods in France without T1 documents or VAT outlay, with duty and tax billed back to the UK.
Edward Lucy of Davies Turner noted that DAP Regime 42 is becoming the preferred method for shippers because it is cheaper and reduces risk, as shippers avoid VAT involvement and being named on customs entries. However, he stressed the importance of offering multiple options, including standard DAP, DDP Regime 40, and DDP VAT Forward. Smaller companies are particularly affected, finding the changes complex and time-consuming.
Pawel Jarza of BIFA recalled that the late announcement caused confusion, but the market has since stabilised. He suggested other EU customs authorities may follow suit, depending on broader EU customs reforms. Godber predicted that over the next three to five years, the DDP market will see greater use of digital customs and VAT solutions, increased EU customer confidence, and a consolidation of providers offering higher expertise and service quality. Ultimately, the reforms are raising the bar rather than closing the door, positioning adaptable businesses for growth. For importers and exporters navigating these changes, working with a knowledgeable customs broker and ensuring accurate customs clearance and customs declaration processes are critical. The impact is particularly felt at key entry points like Shanghai Customs and the Shanghai port, where cross-border trade flows are closely watched. As the EU customs landscape evolves, staying informed on customs document requirements and import & export regulations remains essential for smooth supply chain operations.