INCOTERMS 2020 and Shipping Import & Export Documentation Procedures

Duration

INCOTERMS 2020 and Shipping Import & Export Documentation Procedures

2 days

Overview

The Incoterms® 2020 provides comprehensive working knowledge of ICC’s globally recognised commercial trade terms, which offer specific guidance for those participating in the import and export of global trade.

The global economy has given business broader access than ever before to markets all over the world. Goods are sold in more countries, in larger quantities, and in greater variety. But as the volume and complexity of global sales increase, so do possibilities for misunderstandings and costly disputes when sale contracts are not adequately drafted.

The ICC Incoterms® rules on the use of domestic and international trade terms address this risk by facilitating the conduct of global trade. Reference to an Incoterms® rule in a contract for the sale of goods clearly defines the parties’ respective obligations regarding topics such as risk, cost and arrangement of transport & customs clearance and reduces the risk of legal complications.

Since ICC first codified a set of standard trading terms as the Incoterms® rules in 1936, this globally accepted contractual standard has been updated periodically to reflect the evolution of international trade. The Incoterms® 2020 rules take account of the increased attention to security in the movement of goods, the need for flexibility in insurance coverage depending on the nature of goods and transport, and the call by banks for an on-board bill of lading in certain financed sales under FCA rule.

Incoterms® 2020 also offers a simpler and clearer presentation of all rules, featuring an expanded introduction and explanatory notes. Incoterms® 2020 is also the first version off ICC’s Incoterms® rules to include a ‘horizontal’ presentation, grouping all like articles together and allowing users to clearly see differences in treatment of particular issues across the 11 Incoterms® rules.

Incoterms rules define the responsibilities of buyers and sellers for the delivery of goods under sale contracts. They are the authoritative rules for determining how costs and risks are allocated to the parties. Incoterms rules are regularly incorporated into sale contracts worldwide and have become part of the daily language of trade.

Incoterms® 2020 contains use of the 11 Incoterms trading terms. It takes into account the latest developments in commercial practice and updates and consolidates some of the former rules. All sales contracts should make reference to the Incoterms® 2020 rules as the latest version of the Incoterms rules.

The new Incoterms® 2020 launched on 10th September 2019 is effective worldwide as of 1st January 2020.

Who Should Attend

This course is specially designed for those who are involved in:

Import / Export / Shipping Operation, Freight Forwarding, Purchasing & Supply Chain Activities, Transporting, Bill Processing, Trade Documentation, Manufacturing, Sales Administration, Marine Insurance, Finance & Administration, Bankers, Customs Brokers.

Methodology

Real-life examples and exercises will be used during the workshop to stimulate learning and to make workshop interactive and exciting.

Outline

• What are INCOTERM and its Importance in International Trade
• How to use the INCOTERM 2020 Rules
• Factors to consider in choosing the appropriate INCOTERM Rule
• What the INCOTERMS Rules DO
• What the INCOTERMS Rules DO NOT DO
• How BEST to Incorporate the INCOTERMS RULES
• DELIVER, RISK and COST in the INCOTERMS Rule 2020
• Delivery Points
• The Extremes and in-between the four traditional INCOTERMS Rules groups
• INCOTERMS Rules and the CARRIER
• Rules for the Contract of SALE and Their Relationship to Other Contracts
• The ELEVEN INCOTERMS 2020 RULES
• Rules for any Mode or Modes of Transport
• Rules for SEA and INLAND WATERWAYS Transport
• Difference Between INCOTERMS 2010 and 2020
• Bills of Lading with an on-board notation and the FCA INCOTERMS’ Rule
• Cost, where they are listed
• Different level of Insurance cover in CIF and CIP
• Arranging for Carriage with Seller’s or Buyer’s own means of transport in FCA, DAP, DPU and DDP
• Inclusion of Security-related requirements within carriage obligations and costs
• Variants of INCOTERMS Rules, ARE THEY SAVE TO USE
• Rules for Any Mode or Modes of Transport (7 Terms)
• EXW – Ex Work
• FCA – Free Carrier
• CPT – Carriage Pain To
• CIP – Carriage and Insurance Paid To
• DAP – Delivered at Place
• DPU – Delivered at Place Unloaded
• DDP – Delivered Duty Paid
• Rules for Sea and Inland Waterway Transport (4 terms)
• FAS – Free Alongside Ship
• FOB – Free On Board
• CFR – Cost and Freight
• CIF – Cost Insurance and Freight
• Steps of Exporting & Importing (How an LC is Created)
• What are the steps and procedures in Exporting & Importing
• Parties involved in LC Operation, their Obligations and Responsibilities (Buyer, Seller, Issuing Bank and Beneficiary Bank)
• Letter of Credit at Sight
• Letter of Credit Usance (Deferred Payment)
• Documentary Collections – Sight Bills
• Documentary Collections – Usance Bills
• Definition Import Value, Documentation required for Import and Import activities flow in Port
• What is import value
• Purpose of import documents
• Types of documents required for Import
• Customs declaration K1
• Commercial invoice
• Packing list
• Bill of Lading
• Essential point to note in Bill of Lading
• Types of Bill of Lading
• Marine insurance
• Inspection certificate
• Certificate of Origin
• Certificate of exemption
• Licenses
• Flow of Import Procedures
• Submission of documents to Forwarding Agent, Shipping Agent and Royal Customs Department
• Definition of Export Value, Documents required for Export and Export activities flow in Port
• What is export value
• What is CESS Fee
• Types of documents required for Export
• Customs declaration
• Commercial invoice
• Packing list
• Certificate of Origin
• Permits & Licenses
• Other relevant documents
• KPWX form (What is KPWX form and why it is no longer in use)
• Flow of Export Procedures
• Collection of goods
• Submission of documents to Forwarding agent and Customs Declaration
• Dos and Don’ts with Royal Malaysian Customs
• Direct release
• Points to remember
• Types of offences and punishments
• Claims procedures
• Steps in claiming
• Documents required
• Insurance Certificate
• Invoice
• Packing list
• Bill of Lading
• Forwarding agent’s delivery order and remarks
• Survey reports & photographs
• Port Authority survey report
• Container terminal un-stuffing report
• Ship’s log book and Sea protest note
• Tips for Importers, Exporter and How to avoid shipping errors

Programme scope, delivery arrangements and suitability are confirmed during enquiry.