Incoterms 2020
The Language of Domestic & International Trade
INTRODUCTION
The International Chamber of Commerce (ICC) has launched Incoterms 2020, the newest edition of the renowned trade terms for the sale of goods. The new rules become effective from 1 January 2020.
The Incoterms® rules are an essential part of the daily language of international trade. They have been used in millions of sales contracts to help exporters and importers avoid costly misunderstandings by clarifying the tasks, costs and risks involved in the delivery of goods from sellers to buyers. The 11 Incoterms 2020 rules are:
| EXW | FCA | FAS | FOB | CFR | CIF | CPT | CIP | DAP | DPU | DDP |
|---|
Exporters, Importers, Bankers and Insurers, Freight Forwarders and Carriers need to be aware of the new changes in Incoterms 2020 which provides more certainty and clarity to business and traders everywhere.
Incoterms 2020 now includes more detailed explanatory notes with enhanced graphics to illustrate the responsibilities of importers and exporters for each of the Incoterms 2020 rules.
Incoterms 2020 contain six significant changes from Incoterms 2010 viz:
- The FCA rule now contains an additional element relating to bills of lading
- Costs are now consistently listed in A9 (Seller’s Obligations) and B9 (Buyer’s Obligations), providing a “one-stop list of costs” for each rule.
- Different levels of insurance coverage in CIF and CIP.
- Arrangement for carriage with own means of transport in FCA, DAP, DPU and DDP.
- DAT (Delivered At Terminal) has now been renamed DPU (Delivered At Place Unloaded)
- An express allocation of security-related obligations within carriage obligations and cost.
OBJECTIVES OF MASTER CLASS
At the end of the master class, participants will be able to learn
- Purpose and scope of Incoterms
- The harmonisation of incoterms with methods of payment
- Tasks, costs and risks of the seller and buyer
- The significance of the point and place of delivery
- Case studies on how fraudsters use the weaknesses in some of the Incoterms and the procedural flow in the movement of goods to deceive the sellers and the buyer
- Wrong and correct usage of Incoterms
- How to choose the right Incoterms.
- Insurance Issues with Incoterms
- Other Case studies on Incoterms
WHAT MAKES OUR MASTER CLASS SPECIAL?
Participants will receive a detailed workbook containing step by step, easy to understand extensive graphics and diagrams illustrated by our very experienced trainer, Mr. Billy Fong who had been teaching Incoterms since 1992. He explains in-depth each of the 11 Incoterm rules on its definition, practical usage and risks supported by real life case-studies collected over the many years.Participants will also each receive a copy of the new Incoterms 2020 book, wall chart and pocket cards published by the International Chamber of Commerce.
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