ICC has launched Incoterms 2020, the newest edition of the renowned trade terms for the delivery of goods, providing certainty and clarity to business and traders everywhere.
The Incoterms rules were first introduced by ICC in 1936 to establish commonly accepted definitions and rules related to the delivery of goods between trading partners worldwide. Since then, ICC has periodically revised the Incoterms rules to reflect changes in the international trade system. The 2020 edition launches during the organization’s Centenary year.
More accessible and easier to use, Incoterms new version includes more detailed explanatory notes with enhanced graphics to illustrate the responsibilities of importers and exporters for each Incoterms rule. The introduction to this version also includes a more detailed explanation on how to choose the most appropriate Incoterms rule for a given transaction, or how a sales contract interacts with ancillary contracts.
- Incoterms 2020 provides for demonstrated market need in relation to bills of lading (BL) with an on-board notation and the Free Carrier (FCA) Incoterms rule.
- Incoterms 2020 aligns different levels of insurance coverage in Cost Insurance and Freight (CIF) and Carriage and Insurance Paid To (CIP).
- Incoterms 2020 includes 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.
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