Course Description:
The word ‘INCOTERMS’ is derived from International Commercial terms, which are a series of three-letter terms related to common sales practices published by the International Chamber of Commerce (ICC). The main aim of Incoterms is to define the tasks, costs and risks associated with the transportation and delivery of products and goods. In this course the attendees will learn about Incoterms, their definitions and classification, and their use by procurement professionals. The attendees will also learn about the role of the buyer during the supplier selection process. This course will be of interest to procurement professionals who would like to learn more about Incoterms and their use in the procurement process.
Course Objective:
By the end of this course, the participant will be able to:
- List and define Incoterms
- Review the new changes and understand the main critical points of the (11) terms of INCOTERMS 2010
- Describe the classification of Incoterms
- Explain the use of Incoterms in the procurement process
Course Outlines:
- Introduction to Incoterms – what is it, what does it clarify, how widely is it used and how may we apply the Incoterms?
- The new developments in maritime and international transport
- Structure and layout – reading the terms to your advantage
- The relevance of delivery and the passing of risk
- Letter of credit as a main method of payment
- Contract of coverage (BIL)
- Reasons of changing INCOTERMS 2000
- Review and understand the (11) terms of INCOTERMS 2010
- The relationship between the international trade terms: contracts of sale, contract of transportation, insurance contracts and documentary credits
- Terms applicable to domestic sales and trade across the Single Market
- Classifications to reflect appropriate modes of transport
- Security issues – seller’s and buyer’s clearance obligation
- Responsibilities of both buyer and seller according to INCOTERMS 2010
- Analysing the most commonly-used terms and discussion of the implications to your business
