GISTnet C11—Working with Incoterms, including Practical Concerns & Forwarder Issues at Time of Shipment

C11—Working with Incoterms, including Practical Concerns & Forwarder Issues at Time of Shipment

Non-subscriber price: $180.00, Subscriber price: $125.00
Estimated total study time: 11 hours 37 minutes

This course will provide practical understanding of the most commonly used Incoterms (delivery terms), including problem areas that can arise at the time of shipment and how best to address such problems.

Note: The full content of this course is also included in the GISTnet course C1—Export-Import Transaction Fundamentals; Using Incoterms. We recommend course C1 for a more comprehensive introduction to import-export transactions.

Overview of Incoterms

This lesson provides a overview of the primary characteristics of each group of Incoterms, and concludes with a matrix showing the respective responsibilities of seller vs. buyer for each Incoterm.

(Estimated study time: 1 hour 7 minutes)

Introduction
Why Incoterms?
Summary of Incoterms
- "E" Term (EXW)
- "F" Terms
- "C" Terms
- "D" Terms
- Summary Chart

Seller and Buyer Responsibilities Common to All Incoterms

(Estimated study time: 45 minutes)

Introduction
Seller and Buyer Responsibilities Common to All Incoterms
- Seller's Responsibilities under All Incoterms
- Buyer's Responsibilities under All Terms

Passage of Risk; Responsibility for Arranging Transportation and Notification

(Estimated study time: 58 minutes)

Introduction
Passage of Risk
- General—Risk Passage Coincides with Seller's Delivery of Goods
- Passage of Risk If Buyer Fails to Take or Accept Delivery
Arranging Export Transportation and Contract of Carriage
Required Notices

Trade Term Citation Particulars Required

(Estimated study time: 1 hour 9 minutes)

Introduction
Trade Term Citation Particulars Required
- General—Specify Current Terms
- Four Basic Items of Information Required
- Place Specification
- Incoterms Date/Time Specification
- Further Specification of Incoterms Particulars

EXW Issues and Concerns

(Estimated study time: 1 hour 7 minutes)

Introduction
EXW—Additional Requirements and Concerns
- General
- Passage of Risk under EXW
- Loading Conveyance under EXW
  - Buyer Responsible for Loading
  - "EXW Loaded"
  - Transportation Mode Considerations
  - Intermodal Containers
  - Practical Considerations—MHE Assistance
- Export Formalities

"F" Terms Issues and Concerns

(Estimated study time: 56 minutes)

Introduction
"F" Terms—General
Passage of Risk
FCA Delivery Concerns
- Usage
- "FCA Origin" (Named FCA Point is Seller's Facility; Seller Loads Buyer's Carrier)
- FCA (Named Place other than Seller's Premises; Buyer Unloads Seller's Carrier)
- Arranging Transportation and Contract of Carriage under FCA
Issues with FOB and FAS

"C" and "D" Terms Issues

(Estimated study time: 1 hour 20 minutes)

Introduction
"C" Terms—Additional Requirements and Concerns
- "C" Terms Usage
- Passage of Risk
- Shipping Insurance under CIF and CIP
Distinguishing Among "D" Terms
Passage of Risk
Pros and Cons of "D" Terms
- Buyer's Benefit
- Seller's Benefit
- Seller's Concerns
Import Formalities

Incoterms Matrices; Practice Applying Terms

(Estimated study time: 1 hour 33 minutes)

Introduction
Division of Incoterms Responsibilities and Costs (Matrices)
- Responsibilities and Costs Matrix, Primary Transportation via Vessel (Ocean or Inland Waterway)
- Responsibilities and Costs Matrix, Primary Transportation Via Aircraft (Air Freight)
- Responsibilities and Costs Matrix, Primary Transportation via Truck, Rail (Ground Transport)

Freight Forwarder Challenges with Trade Terms

(Estimated study time: 1 hour 15 minutes)

Introduction
General
Shipment Quotation/Planning
- Assisting/Educating the Shipper
  - Helping a New Exporter Understand Trade Terms
  - Use of Trade Term at Time of Sales/Shipping Quotation
  - Trade Term 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

Freight Forwarder Challenges with Trade Terms at Time of Shipment

(Estimated study time: 1 hour 26 minutes)

Introduction
International Trade - General
- Anatomy of an Export Transaction; Incoterms
  - Freight Forwarder Challenges with Trade Terms
    - Dealing with Problematic or Impossible Trade Terms
    - Exporter/Shipper Ignorance, Vagueness or Conflicting Instructions
    - Misunderstandings between Seller and Buyer
    - 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