- What are Incoterms?
- Why do sellers and buyers need to know and apply INCOTERMS in DOMESTIC as well as INTERNATIONAL CONTRACTS AND PURCHASE ORDERS?
- Group E: EXW
- Group F: FAS FCA FOB
- Group C: CFR CIF CPT CIP
- Group D: DES DEQ DDU DDP DAF
- How are INCOTERMS used in domestic and international purchasing?
At the completion of this seminar, students will be able to explain:
- The responsibilities of the Seller and Buyer under Incoterms 2000.
- How Incoterms are used in Domestic and International Contract and Purchase Order transactions.
Who Should Attend This Seminar?
- Purchasing and supply chain management professionals who need to be retrained from UCC to INCOTERMS
- Marketing and sales professionals who need to be retrained from UCC to INCOTERMS
- Senior executives with the following corporate positions:
- Chief Purchasing Officers
- Chief Procurement Officers
- Chief Supply Chain Officers
- Directors, Senior Managers, Managers, and Heads of the following departments:
- Supply Chain Management
- Supply Chain Strategic Planning
- Strategic Planning
- Business Development
- Supplier/Vendor Management
- Supplier/Supply Management
- Materials Management
- Information Technology
Incoterms are a set of international rules for the interpretation of trade terms set forth by the International Chamber of Commerce. The word Incoterm is an abbreviation of International commercial terms and the chosen Incoterm is a term of the contract of sale. Incoterms are not terms of the contract of carriage or delivery.
In purchasing transactions one of the aspects to be defined is the place of delivery of goods. This place, previously agreed between the buyer and seller, must be stated in the sales contract. INCOTERMS 2000 facilitates this by clearly defining the place of delivery, who is responsible for the transport to the place of delivery, who assumes the risks and the point at which risk passes from the exporter to the importer, who customs clears the goods for import/export and many more important obligations. Inasmuch as the term “FOB” is no longer part of the Uniform Commercial Code (latest edition), domestic purchasers have begun to use INCOTERMS in their domestic purchasing.
Incoterms also establish a body of rules for the interpretation of the most commonly used trade terms.
Defining the Obligations. Incoterms enable the contracting parties to set out clearly and concisely the extent of their respective obligations, and above all, the moment when costs and risks are transferred from the seller to the buyer. In Incoterms 2000, the parties define the point to which the seller is responsible for the goods and what are the expenses relating to his obligations which will therefore have to be included in the price offered by the seller. Incoterms cover the various modes of transport of the goods, clearly defining in the contract of sale the respective obligations of the seller and the buyer in each case.