INCOTERMS 2020 and Export Trade

Incoterms rules or Trade Terms are key elements of international contracts of sale. They tell the parties what to do with respect to carriage of the goods from seller to buyer, and export & import clearance. They also explain the division of costs and risks between the parties.

The ICC has launched the Incoterms 2020, which came into effect from the 1st of January 2020. The Latest version of include 11 rules divided into two group of Multimodal including seven rules (EXW, FCA, CPT, CIP , DAP , DPU, DDP) and Maritime including four rules (FAS, FOB , CFR , CIF)   

"The incoterms do not facilitate trade if parties use the wrong terms"

Professor Jan Ramberg

"It is of great importance that companies use an incoterm that is appropriate for their transaction"

International Chamber of Commerce

"Companies often have a lack of knowledge about using Incoterms in the right way "

Jonas Malfliet

Who Should Attend This Course ?

If you are an 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.

Why Should You Attend This Course?

  • It explains different aspects of INCOTERMS and Their Importance in Today's Global Trade

    In reality, international sales of goods /services is a complicated process. A simple export transaction at minimum consists of four different contracts including: Contract of Sales, Contract of Transport, Payment and Insurance. Here, the role of INCOTERMS rules becomes more clear. These three letter trade terms regulate the risk, cost and obligation of the seller and buyer meaning that these three letters in the contract of sales define who will be responsible for transport, insurance and costs. Plus, they affect other important aspects of the business like tax and accounting arrangements. As it is almost impossible to find an international trade transaction without reference to INCOTERMS, every businessman should have sufficient knowledge of them to make wise decisions in terms of his own costs, risks and responsibilities.

  • It elaborates INCOTERMS Rules in detail and explains misunderstandings around them

    The ICC claims that INCOTERMS rules are introduced to provide a comprehensive and unified picture from price elements that the buyer should pay all around the world. However, history of INCOTERMS rules show that they are mostly misunderstood by traders. Before using them, we should know that INCOTERMS Rules are just a piece of the Puzzle not the Whole Picture. This will lead us to answer important questions like: What do they do and what don't they do? Where and When and How shall we use them? And finally, we should know about the problems which are not addressed by INCOTERMS rules and how to solve them.

  • It clarifies what should every trader know in order to choose the best rule for their contract

    There is no doubt that Incoterms rules and their application is misunderstood. Many traders use them as a price point. Some others claim that we only work with a particular rule like FOB or CIF. But, different rules apply to different kinds of trade and criteria for choosing the best rule should not be price point or trade history as many other factors are involved in the decision making process. In this course you will learn how to choose the best rule for your particular trade and manage your costs, responsibilities and risks in a win-win manner together with your trade partner.

  • The knowledge gained in this course will contribute in professional recognition & career development of participants

    It is not easy to find someone whom you can totally trust with their knowledge on Incoterms Rules. Custom of trade is different in different parts of the world which affects even experienced bankers, freight forwarders and businessmen. An objective understanding from Incoterms Rules may have positive effect on your career in different ways. If you are a businessman, it will help you to handle your own business more efficiently, plus getting you recognized as a subject matter expert in the trade community. This can lead into an opportunity to develop a consulting service in your business network. On the other hand, if you work for a bank or trading house or you aim at finishing your business /Law education. Expertise in field of Incoterms can offer you plenty of opportunities for professional recognition at your work place.

What Are You Going To Learn In This Course ?

  • What are the INCOTERMS Rules and what do they do ?

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

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

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

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

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

  • What is the connection between Incoterms Rules and other aspects of business including taxes ?

  • Finally, access to our Bonus Material Section, will answer many of your practical questions on Incoterms Rules

Course curriculum

    1. Introduction

      FREE PREVIEW

    1. History

      FREE PREVIEW

    2. What Are The INCOTERMS Rules?

      FREE PREVIEW

    3. Where Do You Find The INCOTERMS Rules?

    4. Who Is Affected by Application Of The INCOTERMS Rules?

    5. What Is The Proper Way Of Using The INCOTERMS Rules?

    6. Why Should Traders Have a Proper Understanding From The INCOTERMS Rules?

    7. What Don't The INCOTERMS Rules Do?

    8. Quiz 1

    1. A/B1 General Obligations

      FREE PREVIEW

    2. A2/B2 Delivery

    3. A3/B3 Transfer of Risk

    4. A4/B4 Carriage

    5. A5/B5 Insurance

    6. A6/B6 Transport Document

    7. A7/B7 Customs Clearance

    8. A8/B8 Checking/Packing/Marking

    9. A9/B9 Allocation Of Costs

    10. A10/B10 Notices

    11. Quiz 2

    1. EX Work

    2. Free Carrier (FCA)

    3. Carriage Paid To (CPT)

    4. Carriage And Insurance Paid To (CIP)

    5. Delivered At Place (DAP)

    6. Delivered At Place Unloaded

    7. Delivered Duty Paid (DDP)

    8. Free Alongside Ship (FAS)

    9. Free On Board (FOB)

    10. Cost and Freight (CFR)

    11. Cost Insurance and Freight (CIF)

    12. Quiz 3

    1. Recommendations for More Effective Use of The INCOTERMS 2020

    2. Student Feedback

About this course

  • $150.00
  • 34 lessons
  • 1 hour of video content

Instructor

Senior Lecturer & International Trainer Hamed Alavi

Hamed is an expert in Management and Law. Since 2008, he is an active academician, researcher, executive trainer and consultant across Europe and the Middle East. Since outbreak of COVID-19 pandemic, he has devoted his time and experience to the development of high quality online interdisciplinary courses to improve professional skills among business executives at global level. He holds a PhD in Management from Estonian Business School, Estonia. PhD in Law from Autonomous University of Barcelona, Spain. LLM in Maritime and Energy Law from University of Oslo, Norway. LLM in International Trade Law from University of Torino, Italy. Advanced Master in European and International Studies from CIFE, France. MBA with Specialization in International Management together with Executive Diploma in Management Consulting from Grenoble Graduate School of Business, France. His areas of interest are mostly interdisciplinary and can be summarized but not limited to: International Business and Law, Trade Finance, Supply Chain Finance, Project Finance, Energy and Education.

Bonus Material

This section includes different materials you need to improve your practical skills regarding Incoterm's application. All materials including practical discussions, scientific and professional articles as well as notes are collected from reliable sources . However, they only express the stand point of authors . Habib Academy does not assume any responsivity regarding the contact of resources shared in this section.
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Frequently Asked Questions (FAQs)

  • How Long Will It Take Me To Complete The Course ?

    It depends on you and your dedicated time and efforts to the course. This course is online and it follows a particular design and curriculum matching the time schedule of corporate professionals who can not attend full time studies. However, you need to attend all sessions and pass quizzes to successfully obtain the course certificate

  • How Long Do I Have The Access To Lesson For?

    This is a life long access. For one time payment , you will have full access to course materials and all relevant updates For Ever!!!

  • What Is Included In My Course Package ?

    1- You have life long access to course materials and all relevant updates 2- You will have a certificate of accomplishment upon successful completion of the course 3- You have access to 34 lessons on all important aspects of INCOTERMS 2020 prepared by our expert trainer 4- You will have access to all updates on new professional skill development activities and offered courses by Habib Academy

  • Do I Need to Pass A Final Exam ?

    No, The Course on Introduction to INCOTERMS 2020 does not require passing an exam . You just need to successfully cover course materials and pass respective quizzes

  • Who Should Attend This Course ?

    The course on "Introduction to INCOTERMS 2020" is designed for corporate professionals. You are the right person to attend this course if you are : an 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 .

  • Why Does The Course Follow Such Modest Pricing Policy ? Dose It Affect The Quality ?

    No , Habib Academy believes in democratization of education. We follow the modest pricing policy in all of our services to provide high quality professional skill development opportunity for everyone regardless to their financial status. Current pricing policy by no means affects quality of this course or any other service offered by Habib Academy.

  • Does This Course Function As A Stand-Lone Offer Or Is It Part of A Bundle ?

    There is almost no course in this world on any given subject which can claim to have a perfect cover of the subject matter. We also do not make such a claim. In fact, this is an introductory course to INCOTERMS 2020 and more advanced materials are yet to come. However, we strongly recommend you to read our Bonus Material section and follow us on Instagram , facebook and LinkedIn as we publish tones of interesting content which might offer answer to your questions .

Feedback From Participants

Hamid

Export/Import Specialist

“This is perfect…. In just a short period of time , I learned enough technical issues to improve my business. This course is great for anyone in international business. I highly recommend it.”

Lilli

Legal Practitioner

“I’ve taken other Incoterms classes and this one was by far the most comprehensive and most practical. My knowledge about Incoterms and their application in International Sales Contracts improved dramatically .”

Teet

Business Executive

“I learned many things during this class and I can already see improvement in my business and contract negotiation process. I am grateful.”

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