What the course covers
The starting point is the text of the Incoterms® 2020 rules published by the International Chamber of Commerce. The course works through all eleven rules in their two families: the seven for any mode of transport and the four for sea and inland waterway transport. Each rule is read through its A1 to A10 and B1 to B10 obligations, so it is clear who contracts carriage, who handles export and import customs formalities, and where delivery happens.
Three areas get detailed treatment. The first is risk transfer: under FOB, CFR and CIF risk passes when the goods are on board the vessel, a change made in the 2010 edition. The second is the gap between risk and cost: under CIF risk passes at origin, while the seller carries the cost of freight and insurance to destination. The third is insurance, where CIP requires Institute Cargo Clauses (A) and CIF stays on Clauses (C), both at 110% of the value of the goods.
The course also covers the points that produce recurring errors. EXW does not oblige the seller to load the goods. DDP does not oblige the seller to unload them. FCA 2020 adds the option of instructing the carrier to issue a bill of lading with an on-board notation, a route built for the documentary credit.
Who it is for
Export and import departments, procurement managers, freight forwarders, customs brokers and administrative staff who issue or check invoices and international sale contracts. It also suits lawyers and advisers who draft delivery clauses. No prior legal training is required.
Why it matters
Earlier editions of the Incoterms® rules remain available when a new one appears. The contract has to identify the version that applies, because "CIF Barcelona" with no further reference leaves open which text governs. A badly chosen rule shifts risk or cost onto a party that had not budgeted for it, and the effect reaches the invoice, the insurance policy and the customs declaration.
The Incoterms® rules do not settle the law applicable to the contract, do not govern transfer of title and do not replace the sale contract. Their scope is the division of tasks, costs and risk in delivery. Everything else is agreed separately, in the body of the contract.
Programme
- Structure of the Incoterms® 2020 rules: families and A and B obligations
- Delivery point and risk transfer, rule by rule
- Insurance under CIP and CIF: Clauses (A), Clauses (C) and the 110% figure
- EXW, FCA and DDP: loading, unloading and customs formalities
- FCA with an on-board bill of lading and the documentary credit
- Drafting the delivery clause and identifying the edition in force
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