Incoterms are the common trade terms applicable to international trade, which clearly define the obligations of buyers and sellers in the sales contract. Incoterms 2020 officially launched on 1 January 2020 comprise 11 trade terms. This workshop is suitable for employees engaging in purchasing, shipping and logistics, accounting and finance, and sales and marketing departments to join, allowing them to learn about how the latest version may affect their operations.
1. Compare the major differences between Incoterms 2010 and 2020.
2. How can the seller meet the requirement of an on-board bill of lading under the FCA?
3. What are the differences in the level of insurance covered in the CIP and CIF?
4. When there is no third party carrier involved which is very common in China, can we arrange carriage with the seller's or buyer's means of transport in the FCA, DAP, DPU, and DDP?
5. What are the differences between "transfer of responsibility" and "transfer of ownership"? How do they relate to Incoterms?
6. Elaborate the 11 trade terms in Incoterms 2020, and explain the relationship between the trade terms and the transport modes.
7. Discuss each trade term with diagram illustrations and propose the most appropriate one to meet the commercial requirement in terms of risk transfer, costs obligation, and insurance arrangement. The following trade terms will be compared:
- EXW vs. FCA
- CPT vs. DAP vs. DPU
- FOB vs. FAS
- DDP vs. LDP
8. If a carrier goes bankrupt and fails to deliver the products, who should bear the related risks and consequences? Should the importer fulfill the payment obligations in this circumstance? How do Incoterms help fix the responsibility of each party?
9. If a buyer is required to pick up goods from the seller's warehouse according to the EXW, common issues found by the seller may include missing export declaration and incorrect information on export manifested by the buyer. Are there any solutions to fix these issues?
10. Explain the common misunderstandings and errors involved in the usage of Incoterms.
11. What are the interpretations of "place of delivery" and "final destination" in Incoterms 2020? Discuss the importance of their explanations in the C group.