While VAT in the UK is a matter for the Treasury, and in the EU it is the responsibility of member states, my Department is aware of SMEs feeling pressured to supply on a delivered duty paid basis. That is a matter for commercial decision between contracting parties, but none the less, we provide support for SMEs through our international trade adviser network, and just last week we held a webinar as part of the UK Export Academy dealing with Incoterms in general, of which DDP forms part.
Many SMEs have EU clients that are themselves SMEs, which understandably do not wish to be importers and thus take on extra regulatory burdens. Due to the insistence on DDP terms, UK exporters have to try to reclaim EU VAT. I hear what the Minister says about different responsibilities and so on, but in his co-ordinating and supportive role, will he agree to meet me and representatives of the British Promotional Merchandise Association, to hear at first hand the difficulties that its members are having and to explore solutions, even if they are cross-departmental?