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DDP VS. DDU: WHAT’S THE DIFFERENCE? When it comes to Delivered Duty Paid (DDP) and Delivered Duty Unpaid (DDU), here are some factors to keep in mind.

By Michael J. Ryan

14 PARCELindustry.com  INTERNATIONAL SUPPLY CHAIN - FALL 2017

“S

hipping internationally is a pain in the neck but very valuable to our future growth.” This is a common theme that most CEOs share about their global growth. There are many areas that need to be reviewed and established in developing an effective global program, but let's focus on the commercial terms and how they can impact a merchant’s business. Let’s start with the basics. The B2B merchants have traditionally relied on a Delivered Duty Unpaid (DDU) model because of the nature of the products’ classification and the value of the products. Many of the express providers have streamlined this process by establishing local relationships with the buyers. This can be achieved because there are regular shipments coming into the same consignee, which helps in the

PARCEL Fall 2017  

PARCEL Fall 2017