Southern African global traders and supply chain service providers need to get up to speed with the new Incoterms ®2020 recently released by the International Chamber of Commerce (ICC), which includes several significant changes related to delivery obligations in international trade transactions. The introduction of the DPU and removal of DAT term as well as fundamental changes within FCA form part of these changes. Mark Goodger, managing director of GMLS, which aims to secure the international logistics supply chain by providing skills and knowledge transfer to southern African countries, said it was key for both small businesses and corporates to develop their employees’ knowledge and competency regarding the new rules. Goodger said the new Incoterms provided businesses with more detailed yet simplified guidance on how to choose the correct Incoterms for specific transactions, and was concerned that the foundations of the 2010 version, specifically the legal application of the articles within the rules, were clearly not correctly trained to numerous global stakeholders. He added that there were essential knowledge components within the new Incoterms that had been established ie, Customs security-related requirements as related to carriage obligations and costs. Goodger said that in order to help businesses and their staff gain first-hand expert knowledge on Incoterms ®2020, his firm had invited one of the ICC experts from the drafting committee. Bob Ronai, to lead a professional training seminar in Johannesburg, Cape Town and Durban in February 2020. Ronai is a London Institute of Banking and Finance Certified Documentary Credit Specialist and a member of both the Australian Institute of Export and International Chamber of Commerce (Australia). He has provided education and training globally on international trading, in particular on letters of credit and the Incoterm rules for the past two decades. Goodger said the aim of the seminar was to ensure that local businesses had access to leading global experts to meet their Incoterms ®2020 professional training needs. “This is a huge scoop for South Africa in terms of securing a global expert on Incoterms. When we train people to ensure they get value for their money, we don’t just read the book and pronounce ourselves as experts, we get training from the people who write the book,” Goodger said. Ronai will focus on the changes and the correct use of the Incoterms, contract of sale and best practice capacity during his visit. There were over 20 significant changes, Goodger said. “What we have noticed is that many people still don’t know how to put together the legal terms of a proper international contract of sale, and we are going to provide legal training on the capacity to put together international contracts of sale,” he said. Several senior legal advocates would also be contracted to work on the firm’s course material, he added.
INSERT: This is a huge scoop for South Africa in terms of securing a global expert on Incoterms. – Mark Goodger