Scribd
Upload
206 views2 pages

Instructor'S Manual: Incoterms 2010

This chapter discusses Incoterms 2010 and provides guidance for instructors on teaching key points about international trade terms. It identifies 11 Incoterms that students should learn, including EXW, FCA, CPT, CIP, DAT, DAP, DPP, FAS, FOB, CFR and CIF. The instructor should explain the differences between Incoterms 2000 and 2010, discuss responsibility and risk transfer for each term, and encourage students to complete a worksheet to assess their understanding. Case studies and visual aids can help students learn when and how to appropriately apply the various Incoterms in international business transactions.

Uploaded by

Norhidayah N Elyas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
206 views2 pages

Instructor'S Manual: Incoterms 2010

This chapter discusses Incoterms 2010 and provides guidance for instructors on teaching key points about international trade terms. It identifies 11 Incoterms that students should learn, including EXW, FCA, CPT, CIP, DAT, DAP, DPP, FAS, FOB, CFR and CIF. The instructor should explain the differences between Incoterms 2000 and 2010, discuss responsibility and risk transfer for each term, and encourage students to complete a worksheet to assess their understanding. Case studies and visual aids can help students learn when and how to appropriately apply the various Incoterms in international business transactions.

Uploaded by

Norhidayah N Elyas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 2

INSTRUCTOR’S MANUAL

CHAPTER

4 Incoterms 2010

Learning Outcomes
After reading this chapter, the students should be able to:
ü Evaluate various terms in the Incoterms
ü Correctly choose the correct Incoterms when doing international trade
ü Identify the responsibility/transfer of risk chart for the user of Incoterms

Key Teaching Points


Key Terminology
Incoterms 2010: Incoterms 2010 is the latest version produced in 2010.

Incoterms basically deals with the delivery commitments between buyer and seller. It is part of
the contract between seller and buyer, but both parties must agree to use Incoterms as the basis of
discussion. As an alternative, international business can be transacted without using Incoterms.

There are 11 terms that students are required to know regarding all the deals with international
business: EXW, FCA, CPT, CIP, DAT, DAP, DPP, FAS, FOB, CFR & CIF.

Teaching Tip: The instructor is to discuss Case Study 1 as an eye opener to students who are first exposed
to Incoterms.

Using Incoterms
The history of Incoterms is “good to know” and for general knowledge only. The critical part to
emphasize is to use the latest Incoterms (currently Incoterms 2010).

General guidelines of using Incoterms:


ü Banks never use Incoterms as their basis of making payments.
ü Users of Incoterms can add on additional conditions to the generally accepted terms.
ü The contract of Incoterms is not absolute.
ü Incoterms never mention when payment of the goods must be made.
ü The choice of using the terms is the responsibility of both the buyer and seller, which may put that
in the sales and purchase contract to prevent further arguments.

The 11 rules of Incoterms 2010


Instructor’s Manual
2

The instructor should explain Incoterms 2010 by breaking it into 4 groups of Incoterms and discuss
them in detail.
ü E Group – Ex Works
ü F Group: International Carriage Not paid by seller – FOB, FCA, FAS
ü C Group: International Carriage Paid by the Seller – CFR, CIF, CIP
ü D Group: Arrival at Destination – DAT, DAP, DDP

Teaching Tip: The instructor is to discuss with the students the difference between Incoterms 2000 and
Incoterms 2010. Ask them why do they think some of it has been dropped (DAF, DES, DEQ & DDU) and
some added in (DAT, DAP). The students may not be able to answer correctly, but what is most important is
to derive their thinking reasoning.

Teaching Tip: The instructor is to explain and discuss with the students the transfer of risk or ownership for
each Incoterm item.

Teaching Tip: Use the Power point in Chapter 4 for visual aid.

Teaching Tip: The students are encouraged to answer the multiple choice questions that are readily
available in the companion website.

Teaching Tip: This Chapter is the end of Part 1. The instructor must encourage the students to complete the
worksheet available in the companion website. Points can be awarded for completing the worksheet based
on the lecturer’s predetermined grading scale.

You might also like