C1.3—Working with Incoterms, Including Practical Concerns & Forwarder Issues at Time of Shipment (2020)

Subscriber price: $150.00, Non-subscriber price: $195.00
Estimated total study time: 11 hours 48 minutes

This course will provide practical understanding of the most commonly used Incoterms (delivery terms), including problem areas that can arise at the time of shipment and how best to address such problems.

Note: The full content of this course is also included in the GISTnet course C1—Export-Import Transaction Fundamentals; Using Incoterms (2020). We recommend this course for a more comprehensive introduction to import-export transactions. For entry-level forwarder personnel, we also provide a short course, C1.2—Introduction to Incoterms for Forwarders & Customs Brokers (2020).

Overview of Incoterms

This lesson provides a overview of the primary characteristics of each group of Incoterms, and concludes with a matrix showing the respective responsibilities of seller vs. buyer for each Incoterm.

(Estimated study time: 1 hour 20 minutes)

• Introduction
• Why Incoterms?
• What Incoterms Do NOT Address
• Summary of Incoterms
  • Direct Reference to Incoterms Publication
  • "E" Term (EXW)
  • "F" Terms
  • "C" (Cost Paid to) Terms
  • "D" (Delivered) Terms
  • Summary Chart of Seller and Buyer Responsibilities Under Each Trade Term

Seller and Buyer Responsibilities Common to All Incoterms

(Estimated study time: 42 minutes)

• Seller and Buyer Obligations Under All Incoterms
  • SELLER's Obligations Under All Incoterms
  • BUYER's Obligations under All Terms

Passage of Risk; Responsibility for Arranging Transportation and Notification

(Estimated study time: 1 hour 19 minutes)

• Passage of Risk Coincides with Delivery of Goods
  • General Passage of Risk
  • Passage of Risk If Buyer Fails to Take or Accept Delivery
• Responsibility for Arranging Primary Transportation and Contract of Carriage
• Required Notices Between the Parties
  • Summary of Required Notifications
  • Notices Vary For Each Trade Term
  • Notices Must Be Timely
  • Consequences of Missed Notices

Trade Term Citation Particulars Required

(Estimated study time: 1 hour 4 minutes)

• Required Trade Term Citation Particulars
  • General—Specify Current Terms
  • Four Basic Items of Information Required
  • Place Specification
  • Incoterms Date/Time Specification
  • Further Specification of Incoterms Particulars

EXW Issues and Concerns

(Estimated study time: 1 hour 5 minutes)

• EXW—Additional Requirements and Concerns
  • General
  • Passage of Risk under EXW
  • Loading Conveyance under EXW
    • Buyer Responsible for Loading
    • "EXW Loaded"
    • Transportation Mode Considerations
    • Intermodal Containers
    • Practical Considerations—MHE Assistance
  • Export Formalities
  • Incoterms 2020 Discourages Use of EXW Terms for International Shipments.

"F" Terms Issues and Concerns

(Estimated study time: 51 minutes)

• "F" Terms—General
• Passage of Risk
• FCA Delivery Concerns
  • Usage
  • "FCA Origin" (Named FCA Point is Seller's Facility; Seller Loads Buyer's Carrier)
  • FCA (Named Place other than Seller's Premises; Buyer Unloads Seller's Carrier)
  • Arranging Transportation and Contract of Carriage under FCA
• Issues with FOB and FAS

"C" Terms Issues

(Estimated study time: 40 minutes)

• "C" Terms—Additional Requirements and Concerns
  • "C" Terms Usage
  • Passage of Risk
  • Shipping Insurance under CIF and CIP

"D" Terms Issues

(Estimated study time: 49 minutes)

Incoterms Matrices; Practice Determining Respective Obligations and Costs under Each Trade Term

(Estimated study time: 1 hour 7 minutes)

• Division of Incoterms Responsibilities and Costs (Matrices)
  • Responsibilities and Costs Matrix, Primary Transportation via Vessel (Ocean or Inland Waterway)
  • Responsibilities and Costs Matrix, Primary Transportation Via Aircraft (Air Freight)
  • Responsibilities and Costs Matrix, Primary Transportation via Truck, Rail (Ground Transport)

Freight Forwarder Challenges with Shipment Planning and Quotation

(Estimated study time: 1 hour 15 minutes)

• General
• Shipment Quotation/Planning
  • Assisting/Educating the Shipper
    • Helping a New Exporter Understand Trade Terms
    • Use of Trade Terms at Time of Sales/Shipping Quotation
    • Trade Terms at Time of Shipment
    • Uncovering the De Facto Trade Term for a Shipment; Questions a Forwarder Can Ask
  • Delivered Terms
    • General
    • Reliance on Trade Information/Transaction Processing Services
  • Justifying the Cost of Preparing Quotations
  • Shipment Quotation Summary

Freight Forwarder Challenges with Trade Terms at Time of Shipment

(Estimated study time: 50 minutes)

• International Trade—General
  • Anatomy of an Export Transaction; Incoterms
    • Freight Forwarder Challenges with Trade Terms
      • Dealing with Problematic or Impossible Trade Terms
      • Exporter/Shipper Ignorance, Vagueness or Conflicting Instructions
      • Misunderstandings Between Seller and Buyer

Challenges with Trade Terms at the Time of Shipment, cont.

(Estimated study time: 46 minutes)