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Incoterms® 2020

Incoterms® 2020 are the eleven three-letter rules that tell a seller and a buyer who arranges and pays for each step of a shipment and when the risk of loss passes from one to the other. This course takes each rule in turn with figures, tables and real export cases, then shows you how to choose the right rule for each deal and avoid the mistakes that cost exporters money.

What you will learn

  • Explain what the Incoterms rules cover and, just as important, what they leave to the sales contract
  • Identify the delivery point, the transfer of risk and the cost split for each of the 11 rules
  • Choose between FCA, CPT, CIP and FOB, CFR, CIF according to the transport mode and the way the goods are handed over
  • Match the Incoterm to the transport document, the insurance cover and the payment method, including letters of credit
  • Write an Incoterm correctly in a quotation or contract, with a precise named place and the version
  • Spot and avoid the most frequent Incoterm mistakes in pricing, insurance and customs

Course contents

  1. Incoterms 2020 Explained: What They Cover and What They Don't — Incoterms 2020 explained simply: the 11 rules, the two families, the A/B obligations, what changed from 2010 and what the rules leave to your sales contract.
  2. EXW (Ex Works): Meaning, Risks, Costs and When to Avoid It — EXW Ex Works under Incoterms 2020: who loads, who clears export, where risk passes, a worked example and why FCA is usually the safer choice for exporters.
  3. FCA (Free Carrier): Delivery, Risk and the On-Board B/L Option — FCA Free Carrier under Incoterms 2020: the two delivery cases, who pays what, the on-board bill of lading option and why FCA beats FOB for containers.
  4. CPT (Carriage Paid To): Who Pays, Who Bears the Risk — CPT Carriage Paid To, Incoterms 2020: the seller pays freight to destination but risk passes at origin. Costs table, documents, air example, CPT vs CIP.
  5. CIP (Carriage and Insurance Paid To): Insurance, Risk, Costs — CIP under Incoterms 2020: the seller pays freight and must insure at Institute Cargo Clauses (A) level for 110%. Costs, documents, an example and CIP vs CIF.
  6. DAP (Delivered at Place): Seller's Risk to the Destination — DAP Delivered at Place, Incoterms 2020: the seller carries the goods to the named place at its risk; the buyer unloads and clears import. Costs and example.
  7. DPU (Delivered at Place Unloaded): The Rule That Replaced DAT — DPU Delivered at Place Unloaded, Incoterms 2020: the only rule where the seller unloads at destination. Risk, costs, documents, example, DPU vs DAP vs DDP.
  8. DDP (Delivered Duty Paid): Maximum Seller Obligation Explained — DDP Delivered Duty Paid, Incoterms 2020: the seller clears import and pays duties and VAT. Costs, importer-of-record issues, a worked example, DDP vs DAP.
  9. FAS (Free Alongside Ship): Bulk and Heavy-Lift Cargo Explained — FAS Free Alongside Ship, Incoterms 2020: delivery alongside the buyer's vessel, who pays loading, export clearance, a heavy-lift example and FAS vs FOB.
  10. FOB (Free On Board): Costs, Risks and Documents Explained — FOB Free On Board, Incoterms 2020: risk passes once goods are on board, who pays loading, the bill of lading, a worked example and why FCA suits containers.
  11. CFR (Cost and Freight): Seller Pays Freight, Buyer Takes Risk — CFR Cost and Freight, Incoterms 2020: the seller pays sea freight but risk passes on board at origin. Costs table, bill of lading, bulk example, CFR vs CIF.
  12. CIF (Cost, Insurance and Freight): Rules, Insurance and Risks — CIF under Incoterms 2020: the seller pays freight and minimum Clauses (C) insurance, but risk passes on board at origin. Costs, example, CIF vs CIP and CFR.
  13. How to Choose the Right Incoterm: A Step-by-Step Method — How to choose the right Incoterm for each export deal: six questions on transport, customs, insurance and payment, a decision table and a worked example.
  14. Common Incoterm Mistakes and How to Avoid Them — The most common Incoterm mistakes: FOB and CIF for containers, vague named places, insurance gaps, EXW exports, DDP traps and letter of credit mismatches.