Singapore, 10 September: The educational arm of the International Chamber of Commerce (ICC), the ICC Academy, has debuted a new online training course entitled, the Incoterms® 2020 Certificate (INCO). The release coincides with the launch of the highly anticipated update of the ICC’s international commercial trade terms. This programme is the only online certification officially authorised by the world business organization.
As ICC celebrates its 100th anniversary, the global institution has today released Incoterms® 2020 publication, the latest edition of the world-recognised trade terms, which were first introduced in 1936.
“Incoterms® 2020 forms the language of international trade, helping importers and exporters around the world to communicate with ease. The newly updated rules will further reduce costly misunderstandings for business and enable even greater confidence in global transactions,” said ICC Secretary General John W.H. Denton AO.
The INCO training aims to build confidence among traders, helping them to identify the best trade terms for their business contracts, recognise buyer and seller obligations in terms of costs and risks, and discover general obligations of the rules—from carriage to insurances.
Commenting on the launch of the new training, ICC Academy Managing Director Daniel Kok said: “The Incoterms® rules are a set of 11 regularly-used commercial trade terms used by millions of enterprises—including multinational enterprises, micro- small- and medium-sized enterprises and even individual practitioners—every day, everywhere.”
“However, even though the terms are one of most important features of global trade, they are often misunderstood. Our new Incoterms® 2020 Certificate provides comprehensive working knowledge of one of ICC’s most recognised trading tools to reduce issues along the supply chain and ensure efficient practices.”
Comprising of seven lesson, the interactive online programme provides an overview of the Incoterms® rules, their fundamental commercial purpose and the new updates to each of the terms. For example, the use of FCA (Free Carrier) regarding bills of lading; CIF (Cost, Insurance and Freight) and CIP (Carriage And Insurance Paid To) involving required insurance coverage, and the change of the three-letter acronym for Delivered at Terminal (DAT) to Delivered at Place Unloaded (DPU) to name a few.
In addition, the certificate includes a bespoke “comparison matrix” to help traders analyse the Incoterms® rules and determine which rule best suits their business needs. Case studies are also incorporated, allowing practitioners to apply their knowledge of the Incoterms® rules by simulating real-life work scenarios.
This new edition of the Incoterms® rules addresses today’s ever-evolving global trade landscape. Comprising nine international practitioners, the Incoterms® 2020 Drafting Group –established by ICC in 2016 – has worked to ensure that the changes to the rules clearly and accurately reflect best present-day practices.
The author of the INCO programme and Special Adviser of the Incoterms® 2020 Drafting Group, Charles Debattista said: “The critical thing with the Incoterms® rules is knowing how to choose the right rule for the right trade. For example, companies who trade goods or commodities internationally are familiar with terms, such as CFR, FCA and DDP as pricing mechanisms. However, do they understand the impact of their choice of a particular rule on contractual rights and duties—whether it be a buyer or seller? Choosing the wrong rule for a particular transaction may cost them and they may easily find their profit margin turn into an expensive loss.”
He added: “Similarly, in business—such as logistics, insurance or trade finance—customers go to companies with requirements arising from their Incoterms® rules sales contracts, looking for more information in their transport documents, their insurance certificates or their letters of credit. Businesses can add value to their services, but only if they understand the Incoterms® rules world of their customers. The ICC Academy’s Incoterms® 2020 Certificate has been carefully designed to help train and test understanding and operation of Incoterms® 2020 for businesses in their everyday work.”
The INCO curriculum will be delivered via the ICC Academy’s innovative digital platform, which is accessible on every device. The ICC Academy online courses include new features, such as a searchable course glossary, dynamic animated videos, a quiz review dashboard for assessment tracking, achievement badges, automatic bookmarking and pre-assessment games.
The English version of the certificate is available for purchase at US$399. For those wanting the programme and a digital copy of Incoterms® 2020 publication, the ICC Academy is offering a discounted bundle for US$429. A Spanish version is set to be released on 30 September 2019.
The ICC Academy is also providing additional free resources on Incoterms®2020 rules in the form of Livecasts. Hear the livecast on the The origin of the Incoterms® Rules with ICC’s General Counsel, Emmanuel Jolivet and Drafting the Incoterms® 2020 Rules with ICC’s Trade and Investment Director, Emily O’Connor.
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