Incoterms ® 2020 - A Compact Course

Incoterms® 2020 – A Compact Course provides a clear, practical understanding of the International Commercial Terms published by the International Chamber of Commerce (ICC). These globally recognized trade rules define the responsibilities of buyers and sellers in international contracts for the sale of goods.

Incoterms® 2020 clarify:

• Delivery obligations

• Transfer of risk

• Allocation of costs

• Insurance responsibilities

• Customs clearance duties

This compact course is designed for trade professionals who need a concise yet comprehensive understanding of the 11 Incoterms® 2020 rules.

Course Objectives

By the end of this course, participants will be able to:

• Understand the structure and purpose of Incoterms® 2020

• Correctly apply all 11 Incoterms rules

• Identify risk transfer points in trade transactions

• Avoid common contractual mistakes

• Select appropriate Incoterms for different transport modes

• Reduce disputes in international sales contracts

Course Outline: Incoterms® 2020 – A Compact Course

Module 1: Introduction to Incoterms®

• History and evolution of Incoterms

• Role of the ICC in international trade

• Legal status of Incoterms® 2020

• Differences between Incoterms® 2010 and 2020

• Importance of correct contract wording

Module 2: Structure of Incoterms® 2020

• The 11 rules explained

• Rules for any mode of transport

• Rules for sea and inland waterway transport only

• Delivery vs risk transfer

• Cost allocation principles

Incoterms® 2020 Rules Overview

Rules for Any Mode of Transport

• EXW – Ex Works

• FCA – Free Carrier

• CPT – Carriage Paid To

• CIP – Carriage and Insurance Paid To

• DAP – Delivered at Place

• DPU – Delivered at Place Unloaded

• DDP – Delivered Duty Paid

Rules for Sea & Inland Waterway Transport

• FAS – Free Alongside Ship

• FOB – Free on Board

• CFR – Cost and Freight

• CIF – Cost, Insurance and Freight

Module 3: Risk Transfer & Cost Allocation

• When does risk transfer from seller to buyer?

• Insurance obligations under CIP and CIF

• Understanding carriage contracts

• Terminal handling charges (THC)

• Practical risk scenarios

Module 4: Choosing the Right Incoterm

• Containerized cargo vs bulk shipments

• Multimodal transport considerations

• Seller vs buyer negotiation leverage

• High-risk vs low-risk trade routes

• Avoiding misuse of FOB and CIF

Module 5: Incoterms® 2020 & Contracts

• Proper contract wording

• Interaction with letters of credit

• Relationship with sales contracts

• Incoterms and dispute resolution

• Common drafting errors

Module 6: Practical Case Studies

• Real-world trade disputes

• Incorrect Incoterm application examples

• Customs clearance challenges

• Insurance claim scenarios

• Best practices in documentation

Key Changes in Incoterms® 2020

• Replacement of DAT with DPU

• Higher insurance requirements under CIP

• FCA and on-board bill of lading option

• Clarified cost allocation structure

• Security-related obligations included

Target Audience

• Export and import managers

• Logistics and supply chain professionals

• Freight forwarders

• Shipping line representatives

• Trade finance professionals

• Procurement managers

• Customs brokers

Duration

• Half-Day Executive Briefing (4 hours)

• 1-Day Intensive Course

• 2-Day Advanced Workshop with case simulations

Learning Outcomes

Participants will gain:

• Clear understanding of delivery and risk transfer

• Practical knowledge to prevent costly trade disputes

• Confidence in drafting international sales contracts

• Ability to select the correct Incoterm for any shipment

Certification

Participants who complete the course and assessment receive:

Certificate of Completion – Incoterms® 2020 Compact Course