GISTnet C1—Export-Import Transaction Fundamentals; Using Incoterms

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C1—Export-Import Transaction Fundamentals; Using Incoterms

Non-subscriber price: $335.00, Subscriber price: $258.00
Estimated total study time: 21 hours 52 minutes [Enroll now]

This course addresses the basic steps, and the key players, involved in concluding and fulfilling an export-import transaction. The role of trade terms (Incoterms) in defining the responsibilities of the seller and buyer for respective shipping arrangements and delivery costs are also covered, particularly with respect to complying with the agreed upon term at the time of shipment. Although much of this course addresses what a freight forwarder must know and do to properly serve an export shipper, other transportation intermediaries, plus exporters and importers, will find it useful and informative.

Access to a copy of the ICC publication Incoterms 2000 publication (www.icc.books) is helpful but not necessary for course completion.

Introduction - Benefits and Basic Elements of Exporting

We introduce our course topic by pointing out the benefits of exporting and importing, and what the requirements which make such transactions more complex than domestic sale/purchase/delivery transactions. Also discussed are the various parties, in addition to the seller and buyer, who facilitate international trade.

(Estimated study time: 1 hour 27 minutes)

Transaction Time Schedule vs. Risks

An export-import transaction typically takes longer to negotiate and fulfill than a domestic sale. There is more information to gather, issues to decide, tasks to accomplish, impediments which can arise. This lesson addresses the relationship between time needed to accomplish the transaction and associated risks such as shipping costs, currency fluctuation and payment.

(Estimated study time: 1 hour 8 minutes)

Additional Export/Import Transaction Concerns

This lesson addresses additional issues which arise in an import-export transaction, such as identity of the "shipper," transportation mode, export regulations, destination country import requirements, and why cargo insurance is purchased.

(Estimated study time: 1 hour 29 minutes)

Trade Facilitation Through Standards; Incoterms

In order to conduct business, a prospective exporter and importer much reach agreement as to the particulars of each transaction to arrive at a "sales contract." This involves communication and documentation. In this lesson we address standards which have been developed to facilitate this communication.

(Estimated study time: 44 minutes)

Incoterms---Respective Responsibilities of Each Party

This lesson begins coverage of Incoterms, commonly known as "trade terms" or "delivery terms," which define the respective responsibilities of the seller and the buyer with respect to the shipment of goods. They facilitate the negotiation and fulfillment of sales contracts, and also provide an excellent introduction to the various operational and legal requirements, costs and risks involved in international commerce.

(Estimated study time: 1 hour 44 minutes)

Incoterms: Arranging Transportation, Notices, and Citation

This lesson continues coverage of Incoterms with respect to responsibility for contracting transportation, required notices and the particulars required when specifying an Incoterm trade term for a particular transaction.

(Estimated study time: 1 hour 34 minutes)

Additional Requirements and Concerns, "EXW" (Ex Works)

In this lesson we examine in detail the use of EXW (Ex Works), including responsibilities a seller may face even though the purpose of EXW is to place the entire shipping responsibility on the buyer.

(Estimated study time: 1 hour 18 minutes)

Additional Requirements and Concerns, "F" Terms

In this lesson we examine the use of the three "F" terms (FCA, FAS and FOB), including important variations in the use of FCA, and special operational concerns and limitations in the use of FAS and FOB.

(Estimated study time: 2 hours 1 minute)

Additional Requirements and Concerns, "C" and "D" Terms

In this lesson we examine the key differences between the "C" terms (CFR, CIF, CPT, CIP), under which the seller accomplishes delivery to the buyer upon departure of the export carrier, freight prepaid, and the "D" terms (DES, DEQ, DAF, DDU, DDP), under which the seller accomplishes delivery to the buyer upon arrival of the goods at the named place in the trade term.

(Estimated study time: 1 hour 22 minutes)

Incoterms Responsibility & Cost Details (Matrices)

This lesson presents detailed matrices covering all of the Incoterms in which the responsibilities of the seller and buyer, and respective costs, are broken out in the level of detail needed to fulfill respective operational tasks and to correctly estimate and allocate respective shipping costs.

(Estimated study time: 1 hour 57 minutes)

Trade Term Negotiation, Citation and Situational Limitations

In this lesson we begin looking at practical aspects of negotiating and using trade terms, and how to avoid typical pitfalls.

(Estimated study time: 1 hour 48 minutes)

Export Quotation Problems Involving Use of Trade Terms

Once a trade term is specified for a transaction, the seller's export sales quotation must cover the cost of all of the seller's responsibilities. This lesson addresses practical problems which arise in preparing export quotations, and how to avoid them.

(Estimated study time: 1 hour 26 minutes)

Cargo Insurance; Additional Incoterms Intrepretation Issues

This lesson addresses two further Incoterms-related concerns:

  1. Shipping Insurance, which most trade terms do not address, and the two which do require only minimal insurance which may leave both parties under-insured, and,
  2. Typical Incoterms interpretation issues and problems which arise at the time of shipment, after the sales agreement has been concluded.

(Estimated study time: 1 hour 24 minutes)

Freight Forwarder Challenges with Trade Terms

An international freight forwarder cannot properly fulfill his function without a good understanding of Incoterms. This is especially true when preparing shipping quotations, in which the applicable trade term determines what tasks and costs his shipper (or consignee) will be responsible for. In this lesson we begin to discuss issues a forwarder should be concerned with when preparing shipping quotations.

(Estimated study time: 1 hour 21 minutes)

Effect of Trade Terms on Shipping Documents; ICC Dispute Resolution

"It's not done until the paperwork is finished." Trade terms affect the way in which shipping documents are prepared. The seller's invoice must cover all costs which the seller is responsible to pay. The international transportation document, often prepared by a forwarder, must show as shipper the party responsible for arranging the shipment. This lesson addresses issues which can arise with these documents, and then touches briefly on dispute resolution, should problems arise.

(Estimated study time: 1 hour 1 minute)