Shadowing Practice: Incoterms 2020 Explained [Complete Guide] - Learn English Speaking with Video
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Hi, in this video, we'll take a look at Incoterms 2020, what they mean, their application, and the benefits of using them.
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So, make sure to watch the full video if you are new exporters.
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We've got a lot to cover in today's video, so let's get started.
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So, what are Incoterms, and who made them?
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Incoterms are referred to as International Commercial Terms.
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Incoterms defines the risk and responsibility of a shipment between the buyer and the seller.
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Incoterms were developed by the International Chambers of Commerce.
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So why do we use Incoterms?
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Incoterms holds a universal meaning around the world.
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People use Incoterms to avoid misunderstandings in foreign trade contracts by clarifying the tasks, costs and risks.
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How to use Incoterms?
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If parties want Incoterm 2020 rules to apply to their contract, the safest way is to clearly mention it in the contract.
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For example, CIF, Hong Kong Incoterms 2020.
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ICC grouped the Incoterms 2020 into two categories.
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Number 1, rules for any modes of transport.
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And number 2, rules for sea and inland waterways transport.
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In the first group, we have 7 Incoterms.
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We have created an easy to understand chart that displays Incoterms 2020.
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The left side of the chart displays the different types of Incoterms beginning from top to bottom.
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The top side of the chart displays the different obligations
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and charges and displays which are covered by the seller and which are covered by the buyer.
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The blue points to the sellers and the yellow points to the buyer.
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So, let's start at the first Incoterm, EXW, which means X -Works or X -Warehouse.
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In X -Works, the seller is only responsible for ensuring
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that the cargo is packaged so it is ready for export and the goods can be collected from their location.
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The risk or liability for the goods transfers to the buyer when the goods are made available at the agreed -upon place.
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The buyer bears all risks and costs once they collect the goods from the seller's location.
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By applying this rule, the buyer and the seller do not have to make an insurance contract.
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Now it's time for Incoterm number 2, FCA, which means free carrier.
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In FCA, the seller is responsible for the export clearance
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and the delivery of goods to the carrier at the named
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place of delivery the incoterms 2020 fca has two possible delivery locations number one
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if the place of delivery is at the seller's premises the seller must load the goods number two
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if the delivery takes place in a different location the seller is not responsible for unloading
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when the goods have been delivered by the seller to the
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selected location the risk transfers to the buyer the buyer is responsible for paying the price of goods and all
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that transportation fees from the seller's place to the buyer's selected
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place in fca it becomes the buyer's responsibility to determine if they would like to obtain an insurance policy
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moving right along to incoterm number three cpt cpt also known
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as carriage paid two in a cpt incoterm the seller is responsible for clearing the goods for export
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and delivering the goods to the name place of destination with
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the transportation fees the risk is transferred from the seller to
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the buyer as soon as the goods are delivered to the first carrier even if there are multiple transportations.
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The buyer is only responsible for import requirements and local delivery and unloading charges.
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The seller is not responsible for any damages
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if the buyer has not insured the products because the goods have already been transferred to the first carrier.
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Without further ado, let's start things off with Incoterm number 4, CIP.
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The CIP stands for carriage and insurance paid to.
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In CIP, the seller is responsible for delivering the goods to the destination, the cost of international freight, as well as insurance fees and charges.
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CIP is also very similar to CPT.
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Except that with CIP, the seller is also responsible for arranging main carriage insurance
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and let's dive right into Incoterm number five DAP.
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The DAP means delivered at place.
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Under the DAP, the seller is responsible for all costs
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and risks associated with the delivery of the goods to the final destination, usually the buyer's premises.
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The risk transfers from seller to buyer when the goods are available for unloading.
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The buyer is then responsible for unloading the goods at the end destination.
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In DAP, both parties are not obligated to make a contract of insurance, but it is recommended.
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With that, it's time for our sixth Incoterm, DPU.
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DPU stands for Delivered at Place Unloaded.
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In DPU, the seller is responsible for all costs and risks until the goods are delivered to named destination place,
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which is usually close to the buyer.
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DPU is the only Incoterm's rule that requires the seller to unload goods at the place of destination.
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The risk transfers from seller to buyer at the place of unloading.
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The buyer is responsible for import clearance procedures, and both parties are not obligated to obtain an insurance policy, but it is recommended.
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Moving right along to Incoterm number 7, DDP, which means delivery duty paid.
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As per the shipping terms under DDP, the seller bears all costs and risks involved in delivering the goods to the selected place.
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It is also the only term where the seller is liable for import custom fees.
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The risk transfers from the seller to buyer at the place of unloading.
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The buyer is then responsible for unloading the goods at the end destination.
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There is no obligation to insure the goods.
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The seller is not obligated to insure the goods for pre -carriage or main carriage.
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With that, we have completed our first category of Incoterms, and now, it's time for Category 2, Rules for Sea and Inland Waterways Transport.
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Our first Incoterm is FAS.
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FAS stands for Free Alongside Ship.
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In FAS, the seller is liable and responsible for all the procedures in their country, up until the goods are alongside the ship or the terminal warehouse.
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FAS indicates that the risk transfers to the buyer when the goods are placed alongside the ship.
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The buyer is responsible for loading the freight onto the vessel as well as handling selling local carriage, discharge, import formalities and duties,
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and onward carriage to the final destination.
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Insurance is not a stipulated requirement under FAS, however, it is a common practice for both buyer
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and seller to get insurance coverage of the cargo's journey they are each responsible for.
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Now it's time for Incoterm number 2, FOB.
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FOB is also known as free on board.
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In FOB, the seller clears the goods for export and ensures
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that they are delivered to and loaded onto the vessel for transport at the named port of departure.
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The risk transfers from the seller to the buyer
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when the goods are onboard the vessel and the buyer bears costs from that point forward.
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The buyer arranges all the other stages to the cargo's ultimate destination.
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Insurance coverage isn't mandatory under the FOB Incoterm.
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However, it is common practice to obtain insurance.
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This may be done by the buyer, seller, or both to cover the entire ocean freight journey or their respective responsibilities.
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With that, it's time for our third incoterm, CFR.
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CFR stands for Cost and Freight.
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The CFR incoterm is an incoterm that is exclusive to ocean freight shipping.
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In CFR, the seller is not only responsible for delivering the goods to the port specified by the buyer
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but also bears the transportation costs of the goods to the destination port.
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The risk passes from seller to buyer when the seller delivers the goods on board the ship.
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The buyer is responsible for paying all the additional transport fees from the port of destination including import clearance and duties.
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The seller is not responsible for procuring marine insurance against the risk of loss or damage to the cargo during transit it.
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And now it's time for our last incoterm, CIF, that stands for Cost,
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Insurance and Freight Agreement, with the seller holding responsible for all three.
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In CIF terms, the seller clears the goods at origin, places the cargo on board, and pays for insurance until the port of discharge at the minimum coverage.
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The risk is transferred to the buyer at the time the goods are on board.
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board the vessel for the main carriage.
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However, they don't take on any costs until the freight arrives at the named port of destination.
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In CIF, the seller is obligated to take out the minimum level of insurance coverage for the buyer's risk.
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We have completed all incoterms, now you can decide which one is the best for you.
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I get a lot of questions from the new exporters, like, for example, which incoterm is the best for new exporters?
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Well, there is no best incoterm, it all depends on the requirements of the buyer and the seller.
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In my opinion, these are some of the best incoterms for new exporters, FOB, CFR, and FCA.
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If you learned something new from today's video, make sure to subscribe to our YouTube channel right now.
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Just click on the button below this video.
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And if you want exclusive import -export training that I only share with subscribers,
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Head over to USAXMClub .com that is USAXMClub .com and sign up for our newsletter.
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It's free.
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Now, I want to turn it over to you.
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Which and co -term from this video are you going to use?
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Let me know by leaving a comment below right now.
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Thanks and good day.
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Woordenschat en spreektips bij deze les
Deze spreekles is gebaseerd op de video “Incoterms 2020 Explained”. Deze woorden komen het vaakst terug: incoterm, seller, buyer, responsible, risk. Deze video bevat 119 zinnen en 1598 woorden om na te spreken. Het gesproken deel duurt 11:06. De spreker praat in een gelijkmatig tempo van ongeveer 144 woorden per minuut, prettig om te shadowen. Slechts 77% van de woorden hoort bij de 3.000 meest gebruikte Engelse woorden, dus de woordenschat is pittig.
Belangrijke woorden in deze video
15 woorden uit de video die het leren waard zijn, met uitspraak en betekenis:
| Woord | Uitspraak | Betekenis |
|---|---|---|
| cellar zelfstandig naamwoord | /ˈsɛləɹ/ | kelder |
| buyer zelfstandig naamwoord | /ˈbaɪ.əɹ/ | koper, koopster |
| destination zelfstandig naamwoord | /dɛstɪˈneɪʃən/ | bestemming |
| carriage zelfstandig naamwoord | /ˈkæɹɪd͡ʒ/ | koets |
| freight zelfstandig naamwoord | /fɹeɪt/ | vracht, cargo |
| import zelfstandig naamwoord | /ˈɪm.pɔɹt/ | import, invoer |
| export zelfstandig naamwoord | /ˈɛks.pɔɹt/ | export, uitvoer |
| carrier zelfstandig naamwoord | /ˈkæɹi.ɚ/ | drager |
| vessel zelfstandig naamwoord | /ˈvɛsəl/ | vaartuig |
| alongside | /əˌlɔŋˈsaɪd/ | aan de zijde van |
| select werkwoord | /sɪˈlɛkt/ | uitkiezen, selecteer |
| obtain werkwoord | /əbˈteɪn/ | verkrijgen |
| requirement zelfstandig naamwoord | /ɹɪˈkwaɪɹmənt/ | vereiste, plicht |
| cargo zelfstandig naamwoord | /ˈkɑɹɡoʊ/ | vracht, lading |
| procedure zelfstandig naamwoord | /pɹəˈsiː.d͡ʒə/ | procedure |
Grammatica in deze video
De structuren die de spreker het meest gebruikt, met de exacte woorden uit de video:
| Structuur | In de video |
|---|---|
| Lijdende vorm be + voltooid deelwoord — het gaat om wat er gebeurt, niet om wie het doet | are referred · were developed · are covered |
| Present perfect have/has + voltooid deelwoord — iets uit het verleden dat nu nog telt | have created · have been delivered · has not insured |
| Betrekkelijke bijzinnen who / which + zin — extra informatie over een persoon of ding | displays which are · EXW, which means · FCA, which means |
Uitspraak om op te letten
De spreker gebruikt 4 samentrekkingen en verkorte vormen, zoals don't, isn't, we'll. Spreek ze kort uit, zoals je ze hoort.
- De klanken “sh” en “zh”: destination /dɛstɪˈneɪʃən/, obligation /ˌɑ.blɪˈɡeɪ.ʃn̩/, associate /əˈsoʊʃi.ət/, shipment /ˈʃɪpmənt/, insure /ɪnˈʃʊɚ/
- Lange woorden — let op de klemtoon: destination /dɛstɪˈneɪʃən/, universal /ˌjunəˈvɜɹs(ə)l/, associate /əˈsoʊʃi.ət/, liability /laɪəˈbɪlɪti/, mandatory /ˈmæn.dəˌtɔɹ.i/
Klanken die Nederlandstaligen lastig vinden:
- Stemhebbende eindmedeklinker — /b/, /d/, /g/, /z/, /v/ niet verscherpen: carriage /ˈkæɹɪd͡ʒ/, alongside /əˌlɔŋˈsaɪd/, arrange /əˈɹeɪnd͡ʒ/, discharge /dɪsˈtʃɑɹdʒ/, inland /ˈɪnlənd/
- /æ/ — opener dan de Nederlandse “e”: carriage /ˈkæɹɪd͡ʒ/, carrier /ˈkæɹi.ɚ/, package /ˈpæk.ɪd͡ʒ/, transit /ˈtɹæn.zɪt/, mandatory /ˈmæn.dəˌtɔɹ.i/
- /g/ — een harde plofklank, geen Nederlandse “g”: cargo /ˈkɑɹɡoʊ/, obligation /ˌɑ.blɪˈɡeɪ.ʃn̩/, obligate /ˈɒb.lɪˌɡeɪt/
Zo oefen je met deze video
- Luister de hele video één keer zonder te spreken en noteer de woorden die je niet kent.
- Spreek zin voor zin na op normale snelheid en herhaal elke zin tot je ritme gelijk is aan dat van de spreker.
- Neem jezelf op en vergelijk met het origineel; let daarbij op woorden als cellar, buyer, destination.
Wat is de Shadowing-techniek?
Shadowing is een wetenschappelijk onderbouwde taalleermethode die oorspronkelijk is ontwikkeld voor professionele tolkentraining en gepopulariseerd door polyglot Dr. Alexander Arguelles. De methode is eenvoudig maar krachtig: je luistert naar native Engelse audio en herhaalt het onmiddellijk hardop — als een schaduw die de spreker volgt met slechts 1–2 seconden vertraging. In tegenstelling tot passief luisteren of grammaticadrills, dwingt shadowing je hersenen en mondspieren om echte spraakpatronen tegelijkertijd te verwerken en te reproduceren. Onderzoek toont aan dat het de uitspraaknauwkeurigheid, intonatie, ritme, verbonden spraak, luisterbegrip en spreekvaardigheid aanzienlijk verbetert — waardoor het een van de meest effectieve methoden is voor IELTS Speaking-voorbereiding en echte Engelse communicatie.