Introduction to Incoterms® 2020

The Incoterms® are a set of 11 individual rules issued by the International Chamber of Commerce (ICC) which define the responsibilities of sellers and buyers for the sale of goods in international transactions. Of primary importance is that each Incoterms rule clarifies the tasks, costs, and risks to be borne by buyers and sellers in these transactions. Familiarizing yourself with Incoterms will help improve smoother transactions by clearly defining who is responsible for what and each step of the transaction. A comprehensive understanding can avoid uncertainty, minimise delays and facilitate smooth operations, transport and payment.

Programme Summary

The Incoterms® 2020 rules define the responsibilities of buyers and sellers trading internationally and domestic.  Reference to an Incoterms® 2020 rule in a sale contract clearly defines the parties’ respective obligations and reduces the risk of legal complications.  It’s imperative that all employees within an internationally trading company have a clear understanding of using and applying the Incoterms® 2020 rules to suit their business needs.

The initial quotation is the starting point and the chosen Incoterms® 2020 rule needs to be appropriate to the goods, to the means of transport and above all dependent on additional obligations.

Key Learning Points

• What are Incoterms® 2020?
• Why are they so important to exporters and importers?
• How Incoterms® 2020 are written into quotations and contracts
• Detailed examination of all the Incoterms®
• The difference between risk and cost