Incoterms 2020

In the complex world of international trade, understanding and applying Incoterms 2020 correctly can be the key to a smooth, successful transaction. Our specialized training program is designed to equip you with the knowledge and skills necessary to navigate these essential trade terms with confidence.

What Are Incoterms 2020?

Incoterms 2020, established by the International Chamber of Commerce (ICC), are a set of standardized terms that define the responsibilities of buyers and sellers in international transactions. These terms clarify issues such as transfer of risks, shipping costs, export/import clearance,  insurance etc. ensuring both parties are aligned on their obligations.

There are 11 INCOTERMS defined under INCOTERMS 2020.

Any Mode of Transport (Seven Terms):

1. Ex Works (EXW): The seller delivers when the goods are made available for pickup at the seller’s premises or another agreed location (named place). The seller is not responsible for loading the goods onto any vehicle nor for clearing the goods for export. The seller has the least responsibility and the buyer has most responsibility.
2. Free Carrier (FCA): The seller delivers the goods to the carrier nominated by the buyer at the named place ready for unloading. The seller is responsible for clearing the goods for export.
3. Carriage Paid To (CPT): The seller delivers the goods to the carrier and pays the transport charges to the named destination. The seller is responsible for clearing the goods for export, but the risk transfers to the buyer once the goods are handed over to the carrier.
4. Carriage and Insurance Paid To (CIP): The seller delivers the goods to the carrier and pays the transport charges to the named destination. The seller also arranges and pays for insurance to cover under Institute Cargo Clauses-A. The risk transfers to the buyer once the goods are handed over to the carrier. However, The seller is responsible for clearing the goods for export
5. Delivered at Place (DAP): The seller delivers when the goods are made available for unloading at the named place of destination. The seller is responsible for the costs and risks associated with transporting the goods to the destination, but the buyer is responsible for clearing the goods for import.
6. Delivered at Place Unloaded (DPU): The seller delivers when the goods are unloaded from the arriving means of transport and placed at the disposal of the buyer at a terminal or another agreed place at the named port or place. The seller bears all the risks and costs associated with transporting the goods to the named destination, including unloading. The buyer is responsible for clearing the goods for import.
7. Delivered Duty Paid (DDP): The seller delivers when the goods are made available for unloading at the named destination after clearing the goods for import and paying all duties and taxes. The seller assumes all risks and costs, including import duties, taxes, and other charges. The seller has the most responsibility and the buyer has the least responsibility.

Sea & Inland Waterways (Four Terms)

1. Free Alongside Ship (FAS): The seller delivers when the goods are placed alongside the ship nominated by the buyer at the named port of loading after clearing the goods for export. The risk transfers to the buyer once the goods are placed alongside the ship.
2. Free On Board (FOB): The seller delivers when the goods are loaded onboard the ship nominated by the buyer at the named port of loading after clearing the goods for export. The risk transfers to the buyer once the goods are loaded on board the ship.
3. Cost and Freight (CFR): The seller delivers when the goods are loaded onboard the ship at the port of loading after clearing the goods for export. The seller is responsible for paying the freight charges up to the named port of discharge. The risk transfers to the buyer once the goods are loaded onboard the ship.
4. Cost, Insurance, and Freight (CIF): The seller delivers when the goods are loaded onboard the ship at the port of loading after clearing the goods for export. The seller is responsible for paying the freight charges up to the named port of discharge and also arranges and pays for insurance to cover the goods at least under the minimum coverage (Institute Cargo Clauses – C). The risk transfers to the buyer once the goods are loaded onboard the ship.

Why Choose Our Training?

• Expert Instructors: Learn from Balaji KAS, with extensive experience in international trade and logistics.
• Comprehensive Coverage: Our training covers all 11 Incoterms, offering detailed insights into each term’s application and implications.

Who Should Attend?

Our training is ideal for professionals involved in global trade, including:

• Exporters and Importers
• Trade Finance Bankers
• Logistics and Supply Chain Managers
• Shipping Companies and Freight Forwarders
• Legal and Compliance Officers

Benefits of Our Training

• Enhanced Understanding: Gain a thorough grasp of Incoterms 2020 to minimize risks and disputes.
• Differences between Incoterms 2010 and Incoterms 2020
• Improved Negotiations: Negotiate better terms and agreements with a clear understanding of responsibilities.
• Increased Efficiency: Streamline your international transactions and improve overall operational efficiency.
• Risk Mitigation: Learn to identify and manage potential risks associated with international shipping and trade.

Join Us for a Session

Don’t let uncertainty hold you back in international trade. Empower yourself with the knowledge and tools to excel. Contact us today to learn more about CDCS training program.