The document provides an overview of Incoterms, the international commercial terms used in contracts for the sale of goods. It defines 11 Incoterms and explains the obligations and risks transferred between buyer and seller under each term. The terms are grouped into four categories based on how far the seller's responsibility reaches: EXW - FCA terms cover delivery at the seller's premises or point of loading; FAS - FOB terms cover delivery on board a vessel; CFR - CIF terms cover delivery to a destination port; and CPT - DDP terms cover delivery to a destination point.

1. The Basics of Incoterms

2. Why are Incoterms Important ?

3. Why are Incoterms Important ?

4. Why are Incoterms Important ?

6. Payment Terms PAYMENT TERMS TIME OF PAYMENT GOODS/DOCUMENT OF TITLE AVAILBLE TO BUYER RISK TO EXPORTER RISK TO IMPORTER CASH IN ADVANCE Before shipment After payment None. Payment received prior to shipment. High. Pays in advance of shipment. Relies on exporter to ship as agreed. DOCUMENTARY LETTER OF CREDIT -Sight Draft Following shipment and presentation of documents. After payment Low. However, documents presented must comply with L/C terms. Low. Documents presented evidence of shipment; however, goods shipped may not be as described in documents. DOCUMENTARY LETTER OF CREDIT - Time Draft On maturity date of draft. Draft may be discounted for early payment. After “acceptance” of time draft by bank. Low. However, documents presented must comply with L/C terms. Low. Documents presented evidence shipment; however, goods shipped may not be as described in documents. COLLECTION Documents Against Payment – Sight Draft On presentation of draft to buyer, provided buyer agrees to pay. After payment. High. No guarantee that buyer will pay for goods. If unpaid, exporter must dispose of goods. Low. However, banks do not review documents and goods shipped may not be as described in documents. COLLECTION Documents Against Payment – Time Draft On collection at maturity of time draft. Before payment, after “acceptance” of time draft by buyer. High. No guarantee that buyer will pay upon maturity of draft and buyer has possession of goods. None; although buyer had accepted draft and agreed to pay upon maturity of draft. OPEN ACCOUNT As agreed. Possibly before payment; it depends on terms granted. Very high. Completely relies on buyer to pay as agreed. None.

8. Incoterms 2000

25. Incoterms 2000

26. Thank You!