How to avoid hidden cost traps in Import & Export Contracts A “must” for the savvy trader in times of low profit margins Delivery terms: affect warranty clauses, product liability, place of jurisdiction CIF ≠ CIF ! – Strategies to avoid the “Cost-collect-Scam” Avoid pitfalls of customs valuations, export procedures Cost-effective merits and limits of Incoterms® in your sales contract Managing freight costs: contract of sales vs. contract of carriage Containerized transports and FOB - really a NO GO? Interdependencies between delivery terms & trade finance – common mistakes VAT Tax issues:  VAT exemption rules  Triangular trade  Chain supply – moving and static supplies  Place of supply of services and goods  Import VAT With this seminar you can earn 6.5 PDUs. Wednesday, 8 October 2014 9.00 – ca. 17.00 Uhr pentahotel Vienna Margaretenstrasse 92, 1050 Vienna I C C A u s t r i a - Your Partner for International Trade and Law A n e as y guide to m inim ize yo ur ris ks & co s ts Target Group Companies - export managers - import / purchasing managers - processors of imports/exports - trade finance & risk managers - in-house legal counsels - logistics and shipping managers - in-house insurance experts Export – Import consultants Banks - trade finance managers - documentary credit departments Logistic companies - international shipping experts other service providers Background & Objective Not only in times of crisis companies face pressure on profit margins - but as they navigate through the actual economic downturn, it is even more critical to successfully manage margins. Margins are being squeezed from rising input costs (commodity, energy,). The inability to pass these costs along due to low inflation forces business to improve their logistical efficiencies. In order to remain competitive, companies not only need to focus on reducing the production cost, but have to reduce the overall cost of any project. As risks cannot be eliminated, true risk management consists in evaluating the risk and shifting it to the party that manages the risk at the lowest cost. Cost reduction programs can therefore only be effective if they combine the identification of potential cost traps with the management of easily avoidable sources of risk. Risk mitigation and the reduction of transaction costs are key factors in commercial survival. This re-quires the alignment of the contracts of your subcontractors (carriers, insurers ...) with the underlying contract of sale and the collaboration of the divisions involved in the transaction (sales, purchasing, tax, law, logistics, accounting, customs etc.). This one-day seminar highlights the most common pitfalls when drafting a sales contract and selecting terms of delivery, such as the Incoterms® rules. The seminar will present practical solutions to streamline the execution of the different aspects of a transaction. It will quickly evolve from theory to the practice of risk identification, qualification, quantification and management, thus eliminating avoidable costs. Interactive Case Study Session: Submit your questions & cases in advance: [email protected] Speaker Koen Vanheusden, is a leading member of the International Chamber of Commerce Commission on Commercial Law and Practice (CLP). He is Chair of ICC’s International Model Sales Contract Task Force and is an accredited trainer on the Incoterms® Rules. Koen, a Director at the Belgian Foreign Trade Agency has over 25 years of experience in international trade as a corporate lawyer, a private lawyer and a consultant. He has written many books and articles on multiple aspects of international trade (contracts of sale, Incoterms, agency and distributorship, customs, documents in international trade, export and subsidies etc.). A n e as y guide to m inim ize yo ur ris ks & co s ts Programm Choosing and implementing terms of delivery in your contract  Considerations when choosing logistical solutions  What Incoterms® can and cannot do – optimize your selection  Impact of Incoterms® 2010 on revenue recognition, transfer of title or place of jurisdiction, payment techniques, warranty clauses, product liability  Interdependencies between delivery terms & trade finance – common mistakes  FOB rule and containerized transports: really a NO GO?  Avoid traps of non-defined delivery terms Managing freight costs  Common pitfalls  Freight costs in sales contracts ≠ freight costs in the contract of carriage  What truly happens at terminals and ports  CIF ≠ CIF !  Strategies to avoid the “Cost-collect-Scam”  How do buyers change delivery terms when organizing payment? Customs, Foreign Exchange  Export/ import procedures  Customs valuation  Foreign exchange issues Tax issues  Value added tax exemption rules  Value added tax in triangular trade  Chain supply – moving and static supplies  Place of supply of services and goods  Import VAT  Other tax issues depending on delivery terms - e.g. alcohol tax in importers country  Documentation Case Studies & Court Cases  Learn from recent problems of international active companies Working methods  Plenary-style information sessions  Workshop, practical exercises, real-life scenarios: simulations including the applications of Incoterms® 2010 rules  Question and answer sessions Publications Publ. Nr. 715 720 600 745 On request we will provide you with our complete list of publications! Language EN/DE EN EN EN Title Incoterms® 2010 ICC Guide to Incoterms® 2010 Uniform Customs and Practice for Documentary Credits (UCP 600) International Standard Banking Practice, ISBP – 2013 revision € 38,00 65,00 25,00 25,00 All prices additionally 10 % postage and packaging and 10% VAT more publications: www.icc-austria.org – Publications All ICC rules and publications are protected by copyright. Their reproduction in any form is strictly forbidden without the authorization of ICC. A n e as y guide to m inim ize yo ur ris ks & co s ts Registration Form further ICC Austria conferences and courses: Mail or Fax to: Mrs. Natascha Mottl ICC Austria @ mail: [email protected]  Tel.: +43-1-504 83 00-4306  Fax: +43-1-504 83 00-3703 • • responsible for the content: Eleonore Treu The ICC Model Sale Contract - Workshop 9. October, Vienna 10 Easy steps to avoid discrepancy free documents 7. October, Vienna For further details please visit: www.icc-austria.org Registration Hidden Cost Traps in Im- & Export Contracts pentahotel Vienna Margaretenstrasse 92, 1050 Vienna I want to register for and agree that my name/ address is registered electronically by ICC Austria who will inform me about further programs by e-mail. Participation fee: incl. Seminar documentation, Coffee break, Lunch th 4 working days before Seminar Hidden Cost Traps in Im-& Export Contracts th ICC Model Sale Contract Workshop th Tuesday, 7 Oct 2014 9.00 – 17.00 Wednesday, 8 Oct 2014 9.00 – 17.00 Thursday, 9 Oct 2014 9.00 – 17.00 □ □ □ EUR 490,-- EUR 490,-- EUR 490,-- (excl. 20% VAT) (excl. 20% VAT) (excl. 20% VAT) Reduction for ICC Members: Reduction for ICC Members: Reduction for ICC Members: (excl. 20% VAT) (excl. 20% VAT) (excl. 20% VAT) EUR 392,-- Closing date: Package Prices: 10 Easy steps for discrepancy free documents 2 days – 10% discount, EUR 392,-- EUR 392,-- 3 days – 15% discount Once confirmed by ICC Austria, your registration is legally binding! The regular fee shall be paid within two weeks from receipt of invoice- in case of late registration verifiably before the Seminar starts! Participant Information Family Name: …………………………………………………….………………………….. First Name: …………………..………………………………..……………… □ Mr. □ Mrs. Organisation / Company: ..................................................................................................................................................................................................... Address: ............................................................................................................................................................................................................................... Postal Code, City: ................................................................................................Country:................................................................................................... E-Mail: ....................................................................................Telephone: ......................................................... Fax: ........................................................ 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City:............................................................................................................ Country: …………..………………………………………………………………..…………………………………………………………………………………………………………………………………………... Cancellation Policy: A full refund will only be given for cancellations received up to 14 working days before the event. Cancellations must be made in writing. Should you be unable to attend you can nominate a colleague as replacement ................................................. Date ........................................................................................ Signature