Essential Incoterms – Getting it Right
Incoterms are Internationally recognised terms used in International sales contracts. Devised by the International Chambers of Commerce and used by importers and exporters all over the world, these three-letter trade terms define the risks and responsibilities of buyers and sellers in International Trade contracts.
New Incoterm rules were implemented on 1st January 2011. The new rules are designed to keep pace with changes in International Trade and revised definitions and revisions are designed to give greater clarity and precision to the terms.
The number of terms has been reduced from 13 to 11, with four of the old rules being abolished and two rules terms being created. The text for each rule has been updated and rationalised and there are now clear guidance notes for the use of each rule. The New Incoterms® Rules may now be used for trade both between and within countries and customs – free blocks.
Programme Content -
- Introduction to the programme
- What Are Incoterms® 2010?
- Exercise to check delegates’ perceptions and understanding of Incoterms® 2010
- Why do we need them?
- The significant changes from Incoterms® 2000
- Why the need for change?
- The terminology used in the Incoterms® rules – and what they all mean
- The Incoterms® 2010 publication – understanding the layout
- Factors influencing the choice of Incoterms® rule used
- The limitations of the Incoterms rules and the factors that over-ride their use
- Mis-use of Incoterms® 2010 and the problems that can occur
- Legal obligations at export and import – and their impact upon the choice of Incoterms® rule used
- A study of each of the eleven Incoterms® rules – how relevant are they to your Company
- Using EXW and DDP – are there better options?
- How to ensure Incoterms® rules are applied correctly – especially with regard to minimising risk and obligations beyond the sellers’ control
- Final exercise to check delegates’ understanding of Incoterms® 2010
- Review of programme and post-programme “things to do list”
The programme is fully supported by case studies, up-to-date and easy-to-follow notes and copies of relevant documents.
The trainer is available for further assistance after the programme ends.
This half day seminar will explain in detail what Incoterms are, why they are used and advise on the changes that the 2010 version has brought and is beneficial for any exporter involved in sales, purchasing, shipping, finance, customer service staff and senior managers from both exporters and importers as well as those from freight forwarders, shipping and financial institutions.
Aims & Objectives:
To ensure that delegates understanding the significance of Incoterms® 2010 and its impact upon export transactions.
To ensure delegates can select the right Incoterms® rule for different types of export transaction.
To help delegates avoid costly mistakes through the incorrect application of Incoterms® 2010
All course notes provided.