Thank you for showing an interest in this material. This course, although accessible to entry-level delegates, comprises of a series of sessions that are designed to allow for a more thorough understanding of the subject.

Seasoned users of commercial terms will also benefit by the material, as we unpack some of the finer points of the Rules in an accessible and meaningful manner.

The material is broad and takes in several related areas such as customs valuation, marine insurance, and common payment conditions, in as much as they each relate to the core subject of commercial terms.

Importantly, this course is geared toward the practical application of the Rules; not just what they are, but how to use them. Many applied examples of both correct and incorrect models are informatively unpacked.

Course fees include lunch on both days, and all course materials including a copy of the 6th edition of Trading Words & Phrases

Day One:

A broad look at the content of the course, highlighting how it is best undertaken.
Understanding how contracts are formed and the nature of a contractual relationship.

The vocabulary of international trade – understanding the position of the seller and buyer as distinct from that of the shipper / consignee, the exporter / importer, and the various other role players in trade.

The reason for commercial terms; what is the intention of the parties when using this contract language. The advantages of using Incoterms® Rules; The disadvantages of using Incoterms® Rules.

Understanding the internal structural requirements of Incoterms® Rules; how to correctly write an Incoterms® Rule, with examples.

Several contemporary examples of where the Incoterms® Rule cannot be applied; navigating the layout of the Rules, with examples.

Understanding the structure and layout of the Rules: An overview of the scope and application of Articles 1-10.
A personal view of the physical execution and development of waterway contracts in the European market in the late 1700s as a source of modern commercial terms.

The impact of the 19th century use of the bill of ladling as a title document on the development of commercial contracts and the commercial terms used to describe them.

Interpreting the diagrams used throughout the Explanatory Notes for Users in the Rules and the significance of the colour code, used for the various icons employed in the diagrams.

The Incoterms® Rule EXW – how it is best employed in trade; the disadvantages of the Rule in cross-border trade.

The Incoterms® Rule FAS – the origins, development, and application of the Rule and how it is commonly employed in trade. The use of the term for the transfer of cargo afloat.

Day Two

The Incoterms® Rule FOB – the origins, development, and application of the Rule and how it is commonly employed in trade. Variations of the expression outside of Incoterms® Rules; the North American interpretation versus the European interpretation.

The Incoterms® Rule FCA – the origins and application of the Rule and how it is commonly employed in trade. Multiple examples of the correct application of the Rule and the significant impact of restricted areas and modern cargo handling on both the development of the Rule and its application. Best practice payment conditions and triggers when applying the Rule.

A consideration of the World Customs valuation terminology of ex-works, free onboard (commonly expressed fob or f.o.b.) and c.i.f. The purpose of these symbols in the valuation process and the points of common confusion where the expressions are mistakenly taken as commercial terms. A look at commercial invoices and the significance (and insignificance) of the document in understanding and executing the Rules.

A preparatory lesson covering the concepts in trade that facilitated the development of the C-prefixed contracts and the sale of documentation, as opposed to the sale of the goods the documents appear to address. Examples of this concept in the operation of merchanting models.

The Incoterms® Rules CFR and CIF – the origins of the Rules and how they are commonly employed in trade. Multiple examples of the correct application of the Rules and the significance of restricted areas and modern cargo handling on both the development of the Rules and their application.

An overview of Marine Insurance and the role it plays in international contracts and commercial terms. A board consideration of the maritime condition of the General Average and its significance in the development of c.i.f. contract terms. The Institute Cargo Clauses in the context of Incoterms® Rules.

The Incoterms® Rule CPT – the origins and application of the Rule and how it is commonly employed in trade. Multiple examples of the correct application of the Rule and the significance of restricted areas and modern cargo handling on both the development of the Rule and its application.

The Incoterms® Rule CIP – the origins and application of the Rule and how it is commonly employed in trade. A comprehensive consideration of the important concept of ‘first carrier’ and ‘delivery’. Best practice payment conditions and triggers when applying the Rule and The Institute Cargo Clauses in the context of the CIP Incoterms® Rule.

The Incoterms® Rule DAP – the application of the Rule and how it is commonly employed in trade. A comprehensive consideration of the risk appetite associated with the D-prefixed concepts. Managing the insurance exposure in D-prefixed Rules. Best practice payment conditions and triggers when applying the Rule.

The Incoterms® Rule DPU – the application of the Rule and how it is commonly employed in trade. Defining the meaning of ‘unloading’ in the interpretation of the Rule. The impact of the Cost of Money and credit terms on the choice of commercial term. Best practice payment conditions and triggers when applying the Rule. Product pricing when selling or buying under the CPT Rule as opposed to the DAP and DPU Rules.

The Incoterms® Rule DDP – the application of the Rule and how it is commonly employed in trade. Examples of the challenges posed when applying the Rule and some solutions found through the modification of the Rule to suit certain models.

Your investment R6,250 per delegate including VAT.

If you would like to attend, email me [email protected]