Incoterms Overview

Course Overview

This course provides a thorough understanding of Incoterms and their application in international trade, focusing on how they divide obligations and costs between buyers and sellers. Participants will learn the meaning of each Incoterm, its specific obligations for sellers and buyers, and how the passage of risk and physical delivery are linked. The course also addresses forwarder challenges in applying Incoterms, managing shipping quotations, and providing destination country services under “D” terms. Participants will explore how to identify and resolve inconsistencies in shipping documents, troubleshoot problematic trade terms, and assist in addressing misunderstandings between sellers and buyers.

What Incoterms are, and how they facilitate trade by creating a standard way of dividing obligations between a buyer and seller under various export-import shipment scenarios.
What Incoterms specify and what they do not specify.
What the various Incoterms trade term codes stand for, and how they are grouped for better understanding.
How Incoterms divide costs between seller and buyer.
Seller’s obligations under all Incoterms.
Buyer’s obligations under all Incoterms.
Passage of risk of loss and damage to cargo coincides with physical delivery of goods.
Responsibility for arranging primary transportation and contract of carriage
Required notices that seller and buyer must give each other under each trade term
Forwarder challenges with trade terms
Assistance to shippers in understanding and applying Incoterms trade terms
Providing destination country services in support of “D” (delivered) terms
Forwarder concerns with respect to providing shipping quotations, especially with destination country services
Identifying and resolving inconsistency of shipping documents with applicable trade term.
Identifying and resolving problems with trade terms at time of shipment, including availability of needed services.
Addressing misunderstandings between seller and buyer.
Dealing with Problematic or Impossible Trade Terms.
Avoiding being caught in the middle between shipper and consignee.