UNDERSTANDING INCOTERMS 2020, CUSTOMS PROCESS & TRADE FINANCING INTERNATIONAL AND DOMESTIC TRADE

• Understand the purpose of Incoterms in trade
• Acquired the understanding of the rules of Incoterms
• Understand the benefit and risk associated with the Incoterms learned
• Able to implement the knowledge gain to activate the right steps when dealing with such rules
• Develop ability to choose the proper Incoterms for delivery
• Understand the risk mitigation process in selling or buying
• Understand basic Letter of Credit and Documentary Collection payment method
• Understand the risk and benefit of Letter of Credit and Documentary collection
• Understand the purpose of Bank Guarantee in International Trade

COURSE CONTENT

Module 1 Origin of Incoterms and Basic of Trade

• International Chamber of Commerce
• History of Incoterms
• Evolution of Incoterms
• Parties in International Trade
• Cargo title – rights of seller and buyers

Module 2 Principal, Types, Key Differences and Purpose of Incoterms

• Learn about the key principle of Incoterms
• Understand the purpose of Incoterms
• Benefit of Incoterms
• Wrong Usage of Incoterms
• Incoterms for Negotiation
• Incoterms for multi modal transport
• Incoterms for Sea and waterway
• Understanding all the rule for a buyer and seller
• Main differences between Incoterms 2010 versus 2020

Module 3 Understanding Kastam and Good Packaging process and other documents

• Kastam policy in treating import duties and sales tax
• Method of calculating import duties and sales tax
• Kastam form used in Malaysia
• Type of cost to consider when choosing Incoterms
• Packaging for delivery
• Documents required for import and export
• Understand Free Trade Agreement and tariff code
• Certificate of Origin and Bill of Lading

• • Understanding EXW, FCA, FOB and FAS Incoterms
    • Benefit and Risk with these Incoterms
    • Rule of EXW
    • Rule of FCA
    • Rule of FOB
    • Rule of FAS
    • Key differences of the Incoterms
    • Quiz and Case study

• • Understanding CIF, CFR, CIP and CPT
    • Benefit and Risk with these Incoterms
    • Rule of CIF and CFR
    • Rule of CIP and CPT
    • Key differences of the Incoterms

• • Understanding DAP , DPU and DDP
    • Benefit and Risk with these Incoterms
    • Rule of DAP
    • Rule of new Incoterms DPU
    • Rule of DDP
    • Key differences of the Incoterms
    • Quiz and Case study for session 4

Module 4 – Understanding Trade Financing (Letter of Credit, Bank Guarantee and Documentary collection)

• Introduction to Letter of Credit
• Different type of Letter of Credit
• Parties in the Letter of Credit
• Basic Understanding of UCP 600
• Risk of Letter of Credit
• Incoterms rules applicable in Letter of Credit
• Introduction to Documentary Collection
• Documentary against Acceptance versus Payment
• Basic Understanding of UCP522
• Parties in Documentary collection
• Risk of Documentary collection
• Letter of Credit versus Documentary collection, which is riskier
• What is Standby Letter of Credit
• Method of applying Letter of Credit and Documentary collection
• What is SWIFT and how does it affect your trade transaction
• Understand purpose and when to use Bank Guarantee for International Trade