International Chamber of Commerce Releases Incoterms 2020
Incoterms 2020 has been released! As we mentioned before, the new international commerce terms take effect on January 1, 2020.
Incoterms are fundamental to foreign trade as they provide a set of contract terms for international freight. With this new edition, the ICC – International Chamber of Commerce aims to increase confidence and transparency in business and global trade.
The main purpose of Incoterms is, as it has always been since their first version of 1936, to simplify communication processes, as well as to present international negotiating terms. This new Incoterms aim to be more reachable and easier to use than their previous versions. This includes more detailed explanations, aided and reinforced with graphs illustrating the responsibilities of importers and exporters, for each Incoterms rule. The introduction of Incoterms 2020 includes detailed explanations to help direct you to the most appropriate Incoterm for a given transaction, or how your sales contract will interact with complementary contracts.
Some of Incoterms 2020 main characteristics are:
- To provide for demonstrated market need in relation to bills of lading (BL) with an on-board notation and the Free Carrier (FCA) Incoterms rule;
- To align different levels of insurance coverage in Cost Insurance and Freight (CIF) and Carriage and Insurance Paid to (CIP);
- To include arrangements for carriage with own means of transport in FCA, Delivered at Place (DAP), Delivered at Place Unloaded (DPU), and Delivered Duty Paid (DDP);
- There is a change in the three-letter name for Delivered at Terminal (DAT) to DPU;
- Incoterms 2020 includes security-related requirements within carriage obligations and costs…
In line with their commitment to develop technology available to everyone, access to the essential information on new Incoterms is available on a Mobile Application launched by ICC, which includes a wide range of informational elements, including breaking news, events and training.
Learn more about Incoterms 2020.
You may acquire new Incoterms 2020, under ICC conditions, HERE.