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C1.2—Introduction to Incoterms for Forwarders & Customs Brokers (2020)

Subscriber price: $79.00, Non-subscriber price: $105.00
Estimated total study time: 6 hours 7 minutes

This is a short training designed as an introduction to Incoterms (Trade Terms) in the context of international forwarding and customs clearance operations. We address:

• What Incoterms (trade terms) are
• Why it is important for a forwarder and customs broker to understand them and the respective responsibilities of the seller and buyer
• Typical challenges a forwarder or agent can face with trade terms in preparing shipping quotation and at the time of shipment, and how to address such challenges

Note: As an intro-level course, we do not address in depth what shippers (exporters and importers) need to know in negotiating trade terms, and what shippers and forwarders need to understand concerning project and other specialized shipping requirements.

For shippers (exporters and importers) we recommend GISTnet course C1—Export-Import Transaction Fundamentals; Using Incoterms (2020). For forwarder and customs broker managers and supervisors, we recommend course C1.3—Working with Incoterms, Including Practical Concerns & Forwarder Issues at Time of Shipment (2020).

Incoterms Overview

(Estimated study time: 1 hour 11 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: 41 minutes)

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

Delivery & Passage of Risk

(Estimated study time: 43 minutes)

• Passage of Risk Coincides with Delivery of Goods
  • General Passage of Risk
  • Passage of Risk If Buyer Fails to Take or Accept Delivery

Arranging Primary Transportation, Notices and Forwarder Challenges

(Estimated study time: 1 hour 3 minutes)

• 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
• Forwarder Challenges with Trade Terms
  • General
  • Exporter/Shipper Ignorance, Vagueness or Conflicting Instructions

Shipment Quotation/Planning

(Estimated study time: 1 hour 3 minutes)

• 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

Addressing Shipper Problems with Incoterms

(Estimated study time: 45 minutes)

• Misunderstandings Between Seller and Buyer
• Dealing with Problematic or Impossible Trade Terms
• As Forwarder, Avoid Being Caught in the Middle
• Appplying what you have learned

How Trade Terms Affect Shipment Documentation

(Estimated study time: 40 minutes)

• Shipment Documentation
  • Shipping Documents Must be Accurate, Complete and Consistent
  • Problems with Freight Collect
    • Freight Collect May Not Be an Option
    • L/C Problems
      • Freight Collect Service Not Available
      • Freight Collect Available but Origin Terminal Charges Must be Pre-Paid