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What is a drop shipment?
A typical drop shipment is when the U.S. Principal Party in Interest (USPPI) sells its product to a Foreign Principal Party in Interest (FPPI). The FPPI then sells the same product to its customer in another foreign country or area, and instructs the USPPI to send the product from its facility directly to its customer.
Foreign Trade Division, U.S. Census Bureau
http://www.census.gov/foreign-trade/aes/index.html
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