Incoterms 2020 Explained With Examples

Incoterms 2020 explained with examples using CPT, CFR and CIF. Incoterms are like "codewords" used in shipping and logistics so there's no doubt as to where the responsibilities lie between the buyer and the seller. Incoterms let the buyer and seller know exactly what their responsibilities are when it comes to the place of delivery, cost and risk.
0:00 Introduction to Incoterms 2020
0:42 Why We Need Incoterms - The History
3:44 What Are Incoterms?
5:23 Why Do We Use Incoterms?
6:35 CIF
9:17 Place, Cost, Risk
15:52 CPT
20:16 CFR
20:28 CIF (Again)
25:35 Conclusion
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#incoterms #incoterms2020 #incotermsexplained

[@empitsu8483]

Thank you so much for the clear explanation! As a young legal counsel still learning about the commercial world, I’ve been struggling with negotiating risks in contracts. This opens my eyes to a new world :)

[@ABTS]

Hi Empitsu, so glad to hear the video helped. Good like with your ventures!

[@ashleywilson9814]

You really made this easy to understand and appreciate. Love your personality too. Xx

[@ABTS]

Hi Ashley, thank you so much for your comment and I’m so glad to hear this video helped you!

[@majorkusanagi7855]

Thank you so much, sir. Out of all videos on incoterms, I found yours the best. 😊👍

[@ABTS]

Thank you very much for your comment and I’m so glad you found our video helpful.

[@derickallen8991]

So glad i came across these vids

[@ABTS]

I'm glad that you've found them useful Derick. Thanks for your comment.

[@rafaelagoncalves5988]

This is amazing, so clear... Thank you! Hugs from Brazil :)

[@ABTS]

Hi Rafaela, that’s fantastic and I’m so glad to hear it’s helped you.

[@teraferadis9877]

Essa foi a última sessão de comentários que eu esperaria encontrar uma brasileira. Kkkkkk Espero que você aprendeu o que você estava tentando aprender.

[@lewisforrest4859]

Alan your a good man! hats off to you

[@ABTS]

Thank you very much Lewis for the kind comment. Hope our videos are helping you!

[@amehaaklilu8601]

Unversity professors do not educate as you,you are wonderful

[@ABTS]

Thank you very much for the compliment, I appreciate it.

[@philemonmataba4131]

Interesting keep going Allan

[@ABTS]

Thanks for the encouraging message Philemon. I’m glad you are finding our videos helpful.

[@user-rc7wl1sl6b]

💖💖💖💖💖💖from morocco thank you so much.

[@ABTS]

Thank you very much for your kind comment.

[@nor-iy2nd]

Can i agreewith seller that 1st carrier will be the seoudian air lines and not the land carrier factory to airport?

[@ABTS]

Sorry, I don’t understand as you can’t fly the goods from a factory to an airport. Can you elaborate?

[@nor-iy2nd]

As you said in cpt the risk is transferred to buyer when goods are remitted to the first carrier.in my exemple goods goes to airport by land .after from airport to receiver destination.so who is the first carrier?

[@ABTS]

@@nor-iy2nd The best way I can answer this question is to refer you to A2 under CPT Incoterms 2020 (Delivery). This will answer your question clearly.

[@jameshong2203]

excuse me, where can we buy that book?

[@ABTS]

Hi James, I'm not sure where you are in the world but you can buy either a physical copy of the book or a digital download ebook here: 2go.iccwbo.org/incoterms-2020-eng-config+book_version-Book/.

[@bobronai4641]

The Incoterms 2020 book regrettably is read by a only small minority of those in trade. Most know nothing of it. In the grain trade the GAFTA rules specifically disallow these Incoterms rules of any version. There are eleven "rules" not "terms" and there are ten not nine articles for both seller and buyer. I stopped about 12 minutes in, sorry.

[@ABTS]

Hi Bob, Thank you for your comments on Incoterms 2020. Of course you are correct, there are 11 terms, I was incorrect in stating that there were 10. A slip of the tongue. Indeed the official definition is ‘terms” and not “rules”. In my 35 or so, years of International Trade, the majority of participants use ‘Terms”, old habits die hard. Again you got me on the number of articles, again a slip of the tongue. I do however completely disagree with your statement “regrettably is read only a small minority of those in trade. Most know nothing of it”. Incoterms has been alive and well since the early 1930’s with a world wide following. I have been a trade consultant with the UN for many years and Incoterms (current editions) has always been the backbone in their worldwide terms of delivery, to give you just one example. I have also consulted in such countries as China, India, EU, Canada, USA, to name just a few where Incoterms (current editions) are used by traders. Regarding GAFTA, my video was talking about Incoterms 2020 as used in general trade and not specific trades.

[@bobronai4641]

@@ABTS certainly the UN and like organisations encourage use of the Incoterms rules. However most people think that by using say "FOB" or "CIF" they are using the current Incoterms rules. However that is not the case. To use them correctly they need to actually mention the rules, such as "FOB Mumbai Incoterms 2020." I have presented on the Incoterms 2010 and 2020 rules in Yangon, Hong Kong, Bogota, Manila, Colombo, Dubai, Sharjah, Abu Dhabi, Doha, Vienna and around Australia. When I am informed in many of these places that at least 90% of container trade uses FOB, CFR and CIF then it is clear that all they are doing is using three letter trade terms, but not referring to the ICC's Incoterms rules for interpretation of those trade terms. If you flick to the back of the Incoterms 2020 book you'll find my name there and why I'm passionate about their correct use.

[@ABTS]

@@bobronai4641 Hi Bob, yes indeed, "subject to Incoterms 2020" should always follow the term, you're absolutely right. Great that you are as involved as you are and than you very much for taking the time to comment on our lowly KZbin video. I'm sure you're a very busy man indeed. Thanks again.