International commercial terms (Incoterms) hold the “gold standard” for global trade and were created to protect the global trade community and “simplify” the process of buying, selling and delivering goods. Unfortunately, a lack of comprehensive understanding of the Incoterms can lead to costly disputes. This is why specialised freight industry training company, Global Maritime Legal Solutions (GMLS), has teamed up with the Johannesburg, Cape Town and Durban business chambers to present a series of workshops on the new international commercial terms (Incoterms 2020) which were launched by the International Chamber of Commerce (ICC) this month. CEO of GMLS, Mark Goodger, is one of 21 global master trainers accredited by the ICC to offer training on the new Incoterms 2020. “Every potential trainer has to have an 85% or above pass mark because they need to properly understand the full implications of every Incoterm and convey those to the people they’re training.” This includes high-level industry members such as advocates, maritime insurers, freight forwarders, agents and importers and exporters. “Incoterms do not deal with breach but are often extensively studied and used for judgements in disputes,” said Goodger. He added that this was why it takes ICC-accredited trainers to inform industry about the legal implications. “Incoterms have to be included in contracts of sale and it is vitally important to provide clear directions which cannot be misinterpreted,” said Goodger. An Incoterms 2020 trainer should be able to withstand interrogation on the proper application of an Incoterm and the implication of it should the incorrect term be used, added Goodger. The GMLS approach also does not solely focus on the new Incoterms but provides a history and background on the evolution of Incoterms. “There are various case studies we can learn from regarding previous disputes as well and learn from these so we can avoid the potential pitfalls,” he said. Chairman of the International Chamber of Commerce South Africa (ICCSA), Pat Corbin, said the organisation only supported training on Incoterms 2020 which was delivered by trainers who had attained the required accreditation of the global organisation and who were listed on the database of trainers of the global organisation.
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Incoterms do not deal with breach but are often extensively studied and used for judgements in disputes. – Mark Goodger