SLIDE 2

 Shipping insurance: It offers protection against damages and may be a finite percentage
of the product value.
 Shipping charges: One had to pay it for moving a good from a warehouse to the buyer. It
also involves charges for parcel handling, labeling, etc.
 Duties and taxes: Shipping to another country usually involves fees according to where
the seller is shipping goods. These include disbursement fees.
 Accessorial fees: A fee charged to compensate for lost time or resources during the
transit period.
 Carrier charges: Carrier companies of cargo often fix rates on the size of the shipment.
SLIDE 4
The risk of the goods passes from the seller to the buyer at a designated point in the buyer's
country, namely the buyer's warehouse. That is, the seller's risk segment in this case is from the
seller's warehouse to the buyer's warehouse. This section is long and brings high risks to the
seller during transportation. Thereby encouraging the seller in this case to buy insurance for the
shipment to protect his or her interests.

SLIDE 6
Non-MFN tariffs are applied to countries that are not WTO members and have not
signed bilateral trade agreements with the United States such as Laos, Cuba, and North Korea.
Non-MFN tax rates range from 20% to 110%, many times higher than MFN tax rates.

INSURANCE
1. Under DDP terms, it is not mandatory to purchase insurance for the shipment. But to avoid
risks, it is advisable to have a longer risk period and buy insurance for the shipment.

QUESTION
Delivery duty unpaid (DDU) simply means that the customer is responsible for paying for any
destination country customs fees, duties or taxes. All of these must be paid for customs to
release the shipment once it arrives.
On the other hand, Delivery Duty Paid (DDP) means it is the shipper's responsibility to pay any
customs fees, duties and/or taxes required to send the product to the destination country.

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