Learn about Incoterms® 2020, with this Allyn International Incoterm training.
Click this link and visit as a guest to view a short demonstration of our Incoterm training.
In this eLearning we will talk about Incoterms®, what they are, what they are used for and how to use them before reviewing the 11 Incoterms® of the 2020 edition.
Incoterms® or International Commercial Terms are a series of pre-defined commercial terms used commonly when trading. They notably help define the rights and obligations of buyers and sellers in terms of transport organization, customs responsibilities, and risk coverage.
You can find the 2020 list with some details below.
Following this course, the student should be:
- confident when working with or using Incoterms®.
- able to exchange in a credible manner with customers, service providers, and other parties when using Incoterms®.
- advise on, select, or short list appropriate Incoterms® in relation to a logistics and supply chain situation.
Total run time, approx. 80 min.
User experience will be longer due to interactive parts and reflection time.
A final exam is available and will help validate the acquired knowledge in this Incoterm training.
For individual working on a regular basis with Incoterms®, we strongly recommend the purchase of an official rule book or other supportive material from the International Chamber of Commerce eShop.
The 2020 Incoterms® list covered in this Incoterm training:
EXW, Ex works, means that the seller makes the goods available for pick-up by the buyer at the named place. The buyer is then responsible for all the transport, insurance and customs clearance obligations.
FCA, Free Carrier, means that the seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. If the named placed is at the seller’s premises, the seller is responsible for loading, if elsewhere he is not.
FAS, Free Alongside Ship, means the seller must deliver the goods, cleared for export, alongside the vessel at the named port of shipment and the buyer bears all costs and risks of loss or damage from that point on.
FOC, Free On Board, means the seller’s export cleared goods are considered delivered once they are on board the vessel in the named port. Once they are on board, the buyer bears all costs and risks of loss or damage from that point on.
CFR, Carrier and Freight, means the seller must deliver the goods on board a vessel at the agreed destination port even if the risk is transferred to the buyer once the goods are on board the vessel in the port of origin.
CIF, Carrier, Insurance, Freight, means the seller must deliver the goods on board a vessel at the agreed destination port but the risk is transferred once the goods are on board the vessel in the port of origin. The seller must also provide cargo insurance.
CPT, Carrier Paid To, means the seller organizes the transport of export cleared goods to the place of destination but the delivery is considered complete and risk is transferred once the goods are handed over to the (first) principal carrier.
CIP, Carrier and Insurance Paid To, this Incoterm means the seller organizes the transport and insures the export cleared goods to the destination place but the delivery is considered complete and risk is transferred once goods are handed over to the (first) principal carrier.
DAP, Delivery At Place, means that the seller delivers the goods on an arriving mean of transport still loaded at an agreed destination. The buyer is responsible for the import clearance, unloading and possible further transport.
DPU, Delivery at Place Unloaded, means that the seller delivers and unloads the goods at a named place. The buyer is responsible for clearing the goods for import and carrying them to their final destination.
DDP, Delivered Duty Paid, this Incoterm means all the transport, insurance and customs clearance obligations are for the seller who will bear all risks of damage or loss until the goods are delivered to the buyer, cleared for import but still loaded, at the named placed.