INTRODUCTION FOR MASTERING INCOTERMS 2020 (ICC) IN IMPORT, EXPORT AND FINANCIAL MANAGEMENT
Incoterms play a critical role in helping businesses navigate the complexities of international trade and protect against potential risks and costs. By using the ICC Incoterms correctly, businesses can create a viable contingency plan for managing risks and avoiding costly mistakes in their distribution chain and financial costing.
The course will feature latest highlights being the change of name in DAT to DPU (Deliver to place unloaded). Additional important obligations in FCA, CIP, CIF, DAP, DDP and resolutions on cyber security-related matters and insurance.
This course also touches on impact of financial management relating to costing and budgeting relating to import and export of goods and transactions. Having a strong understanding of Incoterms can also help businesses defend against contractual disputes, financial risk and other legal issues that may arise in the course of international trade.
Who should attend: Entrepreneurs, business professionals, or professionals in managerial, senior and junior executive level who is involve mainly in roles of import, export, logistics administrative roles in international trade. This can be extended to different department or job function supporting international trade ie Business Development Officers, Managers, Department Head, Finance Personnel, Operations Personnel, Procurement Officers, Customer Service Personnel, Front Liners.
LEARNING OBJECTIVE
On completion of the programme, participants will be able to:-
- Understanding the provisions and resolutions of Incoterms 2020
- Learning the contractual and operational constraints of Incoterms
- Managing the risks and costs in the Incoterms distribution chain which impacts costing
- Familiarising the conflicting factors between shipping and Incoterms
- Empowering Incoterms with Logistics and Negotiation competencies
WHO SHOULD ATTEND
This course is ideal for:
- Procurement and Purchasing Officers
- Contract Managers and Legal Officers
- Project Managers and Tendering Officers
- Finance and Compliance Executives
- Business Development Professionals
- Anyone involved in the preparation, evaluation, or management of tenders and bids.
TRAINING METHODOLOGY
Where appropriate, activities will include the following:
- Interactive Lectures
- Case Studies
- Practical Exercises
- Interactive and Engaging Learning
- Group Discussions
Note: Participants are required to bring laptop for costing simulation activity
COURSE OUTLINE
The key content of the program includes the following:
MODULE 1: OVERVIEW OF INCO TERMS
- Understanding different types of Incoterms
- Purpose and Evolution of Incoterms
- Key Changes in Incoterms 2020 ie
- The 4D’s of Define, Design, Detect, Defend in planning stage
- The 4C’s of Carriage, Customs, Contracts, Control in the chain
- The 4T’s transaction terms of Payment, Sales, Delivery, Title
MODULE 2: CONTRACTUAL SCOPE OF INCO TERMS
- Negotiating contracts using Incoterm
- Contractual Obligations
- Preparation stages of negotiation between seller and buyer
- Documentation requirement for transactional fulfillment
- Finalization of agreed contracted terms and conditions
MODULE 3: MAJOR TERMINOLOGIES OF INCO TERMS FOR SHIPPING AND CYBERSECURITY
- Practical scenario and examples
- Specific situations
- Categorising the main grouping of the 11 INCO terms usage ie By sea and water-way transport versus other transport modes, y other delivery options at arrival with customs clearance, cargo uploaded using other obligatory mode
- Understanding the security threats and mitigation
- Understanding the preservation of cargo inherent nature
- Understanding the fulfillment of ownership transfer
MODULE 4: POSITIONING OF AGGREGATE TERMS OF INCO TERMS
- The terms and ruling of CIF, CFR, CIP, CPT
- The terms and ruling of EXW, FOB, FCA, FAS
- The terms and ruling of DPU, DAP, DDP
MODULE 5: COST ESTIMATION AND RISK LINES BETWEEN SELLER AND BUYER
- Simulations on
- The positioning of the port, point, place and premise
- The allocation of the first carrier and forwarders nomination
- The interpretation of port to port and door to door delivery
- High Business Costs, Business Risks attached with wrong used of INCOTERMS.
- Delay in productions, and delivery to Customers caused by wrong used of
- INCOTERMS.
- REVENUE recognitions according to IFRS15.
MODULE 6: INCOTERMS 2020 RULINGS AND RESOLUTIONS
- Demarcation and substitution of the Sale Contract
- Renaming DAT to DPU (delivered at place unloaded)
- Application of the shipping terms On Board in FCA
- Application of the shipping VGM under the SOLAS
- Listing of all costs related to sale of goods sold
- Specification of the ICC marine cargo clause in CIF,CIP
- Provision of information in cyber security- related areas
- Arrangement of own transport in FCA,DPU,DAP,DDP
- Precaution guidelines on Incoterms Do’s and Don’t’s
- Practical resolutions
