Incoterms® are a set of rules which define the responsibilities and obligations of international sellers and buyers for the delivery of goods under sales contracts and are widely used in international commercial transactions. Incoterms® is short for International Commercial Terms. The rules are an agreement between seller and buyer relating to obligations concerning tasks, costs and risks involved in the delivery of goods.
Why Should You Attend
The Incoterms 2010 rules have been updated and revised by the International Chamber of Commerce (ICC). The rules take into account the latest developments in commercial practice. The new rules, known as Incoterms 2020, are effective on January 1, 2020.
These trade terms provide a uniform set of rules to assist buyers and sellers in stating each party's obligations under an international contract. They streamline and remove some of the ambiguity that can occur in a contract especially when parties speak different languages. They provide a basis for dispute resolution. The chosen term defines where risk will transfer between the seller and buyer. This will have an impact on the cargo insurance obligations.
Incorrect use of Incoterms® may cause delays and additional costs if not understood. Certain rules will determine who is responsible for transportation, insurance, reporting the transaction to customs and much more.
- Definition of the 11 Incoterms
- Terms that have been deleted from Incoterms 2010
- News terms that have been added to Incoterms 2020
- Transfer of Risk from the Seller to the Buyer
- Responsibility for Insurance
- Costs Associated with Each Term
- Advantages and disadvantages of each term.
- Insurance responsibility of buyer and seller.
- Proper way to incorporate the Incoterms into your contracts.
- Know the changes between Incoterms 2010 and Incoterms 2020.
- Learn how to best choose the right Incoterms rule for the particular sale contract.
- Understand what Incoterms 2020 rules do and do NOT do and how they are best incorporated in contract of sale.
- Learn where transfer of risk occurs between the seller and the buyer.
- Understand basic roles and responsibilities of seller and buyer in delivery of merchandise.
- Understand the allocation of costs between seller and buyer
- Know how to properly incorporate the Incoterms rules in contracts
Who will Benefit
Any industry that is involved in sales contracts of goods both domestic and international.
Industries who can attend
This 90-minute online course is intended for professionals in the Trade.