Incoterms - Explore major changes, risks and advantages of each Incoterm

Why Should You Attend:

Incoterms are standard definitions for terms of shipment (like “FOB”) developed by the International Chamber of Commerce (ICC) for use in international sales contracts. Correct use of Incoterms goes a long way to providing the legal certainty upon which mutual confidence between business partners must be based. Over the years, the ICC has made many changes and added to the definitions of these shipping terms in contemporary commercial practice.

This webinar will assist participants to understand the areas that the 11 Incoterms cover and how each one works. This training will help participants to understand the matters relating to the rights and obligations of the parties to the contract of sale with respect to the delivery of goods sold.

Learning Objectives:

• Understand what the Incoterms are and how they serve as an international standard.
• Recognize problems that may arise from incorrect use of the Incoterms or by using archaic or domestic shipping terms instead of Incoterms in international contracts.
• Learn the changes that were made when Incoterms 2010 was enacted.
• Explore the risks and advantages of each Incoterm from the seller’s perspective and the buyer’s perspective.
• Gain proficiency in writing contracts of sale and reviewing purchase orders by knowing how to define who will take the risk of damage, who will contract for carriage, and who will pay the costs of freight, insurance, customs duties, etc.
• Develop insights regarding how and why to document when, in an export sale, title to goods transfers (and what happens if you don’t).

Areas Covered in the Webinar:

• How and when to use Incoterms
• How Incoterms differ from other shipping terms
• Major changes from Incoterms 2000
• Misunderstandings about the meanings of FOB and CIF
• What the Incoterms have to do with transfer of title
• When the U.N. Convention on the International Sale of Goods applies to export contracts

Agenda:

1. Introduction to Incoterms
1. What are Incoterms?
2. Why Incoterms needed to be defined
3. History of Incoterms definitions
4. Difference between Incoterms, American Foreign Trade Definitions, and UCC trade terms
5. Major changes made in Incoterms 2010
2. Review of Incoterms 2010
1. Current list of defined Incoterms
2. Modes of transportation for which each term can be used
3. Point of transfer of responsibilities of parties in each term
4. Typical documents required against each Incoterm
5. Other duties of buyer and seller under each term
3. Chart of Incoterms 2010
4. Transfer of Title
1. Not covered in the Incoterms
2. When there is a title document, title transfers with endorsement and delivery unless retained by legal arrangement.
3. If there is no title document, transfer of title should be specified in the contract of sale
4. If not covered in the contract of sale, but the contract of sale is covered by the U.N. Convention on the International Sale of Goods, title transfers when goods are "delivered"

Who will Benefit:

• Treasury Department Employees
• Credit and Collection Managers
• Company Presidents and CFOs
• Company Vice Presidents
• Business Owners
• Sales Managers
• Attorneys
• Insurance Professionals
• Lending Professionals
• Accountants
• Bankers who finance trade receivables

Instructor Profile:

Walter (Buddy) Baker, brings more than 30 years of experience in international trade finance to his current position as Vice President and head of Global Trade Solutions Delivery for Fifth Third Bank. Fifth Third is one of the 20 largest banks in the US and provides a full range of risk mitigation and financing products for exporters and importers. Mr. Baker’s professional experience includes earlier stints with Atradius Trade Credit Insurance, ABN AMRO Bank, Bank of America, Wachovia Bank, and The First National Bank of Chicago.

He is recognized expert in trade finance and author of numerous magazine articles and the books Users’ Handbook to Documentary Credits under UCP600, Documentary Payments & Short-Term Trade Finance, and The Regulatory Environment of Letters of Credit and Trade Finance. He owns the consulting firm Global Trade Risk Management Strategies, which specializes in educational training, and makes frequent presentations for national associations of exporters, importers, bankers, and lawyers. As a member of the National Letter of Credit Committee of the International Financial Services Association, the Advisory Council of the Institute for International Banking Law and Practice, and the Council for International Standby Practices, he is actively involved in establishing national and worldwide standard practices for LCs. He participated in the most recent revision of the Uniform Customs and Practice for Documentary Credits (referred to as "UCP600"), contributed to the creation of the official ICC guide for examining letter of credit documents, called the International Standard Banking Practices for the Examination of Documents under Documentary Credits, and served on the drafting committees for the International Standby Practices ("ISP98") and Article 5 of the Uniform Commercial Code. He is also on the Board of Directors of the Association of International Credit and Trade Finance Professionals ("ICTF"), a multinational association of export credit managers.

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