Incoterms® 2020 - What's changed?
The IncotermsÂ® rules were first introduced by ICC in 1936 to establish commonly accepted definitions and rules related to the delivery of goods between trading parners worldwide. Since then, ICC has periodically revised the IncotermsÂ® rules to reflect changes in the international trade system. The 2020 edition launches during the organisationâ€™s Centenary year.
More accessible and easier to use, IncotermsÂ® 2020 includes more detailed explanatory notes to illustrate the responsibilities of importers and exporters for each IncotermsÂ® rule. The introduction to IncotermsÂ® 2020 also includes a more detailed explanation on how to choose the most appropriate IncotermsÂ® rule for a given transaction, or how a sales contract interacts with ancillary contracts.
- IncotermsÂ® 2020 provides for demonstrated market need in relation to bills of lading (BL) with an on-board notation and the Free Carrier (FCA) IncotermsÂ® rule.
- IncotermsÂ® 2020 aligns different levels of insurance coverage in Cost Insurance and Freight (CIF) and Carriage and Insurance Paid To (CIP).
- IncotermsÂ® 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.
- IncotermsÂ® 2020 includes security-related requirements within carriage obligations and cost
On the release of IncotermsÂ® 2020, ICC Secretary General John W.H. Denton AO said:
â€œIncotermsÂ® 2020 rules make business work for everyone by facilitating trillions of dollars in global trade annually. Because they help importers and exporters around the world to understand their responsibilities and avoid costly misunderstandings, the rules form the language of international sales transactions, and help build confidence in our valuable global trading system.â€