Introduction to INCOTERMS 2020

Many kinds of Trade require transport of goods in domestic market or internationally. If you are in similar type of business, probably , you need to find answer to few critical questions anytime entering a contract negotiation process. Questions like : 

1- Who is going to take care of Transport Costs ? Specially , costs related to loading and discharge of cargo at departure and destination ? 

2- Shall we insure the goods in transit ? If yes , who will pay for insurance costs? and for what type of insurance cover ? 

3- When and where will the risk of loss and damage to cargo pass from seller to the buyer? 

4- When are where will the title and ownership to cargo pass from seller to the buyer?

5- Who will be responsible for taking import and export clearances and paying relevant duties? 

6- Is there any standard framework to provide a uniform picture for answering these questions when different markets and trades follow different customs and regulations? 

In conclusion , “What are the components of sales price offered by seller to the buyer ?” 

Believe it or not , you are not alone.

Almost everyone who enters a contract negotiation process involving cargo transport (specially in import/export business) is facing similar questions.

The problem is getting bigger as we notice that not only customs and regulations differ in different markets , but also , understanding from a single term of trade might be totally different for parties to the very same trade contract.

International Chamber of Commerce introduced INCOTERMS Rules in 1936 to prevent unpleasant surprises, form a standard framework for negotiating transport related clauses in international and domestic contracts  , plus , creating a uniform picture for parties to trade contracts (which need cargo transport )on how, when and where do risks , costs and responsibilities pass from seller to the buyer ? Ever since , the INCOTERMS Rules are gone through periodic revisions to reflect developments and new requirements in the world of trade. Current revision of rules also known as INCOTERMS 2020 was published in September 2019.

ICC claims that main reason for introduction of INCOTERMS Rules is to offer uniform answers to transport related questions of parties to trade contracts at global level. However, history of INCOTERMS Rules shows that rules are generally misunderstood by users resulting creation of further problems in trade process for traders. This course is aims at providing participants with a comprehensive undertesting from INCOTERMS Rules in a concise and precise manner using a simple language. 

If you are international trade professional, purchasing agent , international sales team member, international sales contract professional , logistics and transport professional , international finance professional , lawyer or a business and law student , this course is for you .

Because , at the end of this course , you will have answer to following questions : 

1- What are the INCOTERMS Rules?

2- What do they do and what don’t they do?

3- How are they used in international (and domestic) sales contracts? 

4- What are the consequences of using wrong INCOTERMS Rule in your contract ? 

5- When and where do risks , costs and responsibilities to cargo in transit will pass from seller to the buyer under each of INCOTERMS 2020 Rules ?    

6- What are different variations of INCOTERMS Rules and what do they mean under different national laws? 

7- What is the criteria for choosing most suitable INCOTERMS 2020 Rule in your sales contract? 

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