Its official – Incoterms 2020 has been released
Incoterms 2020, the 9th version of the Incoterms® rules has been in the making for a while now.. Following its introduction in Incoterms® in 1936, these international commercial (Inco) trade terms were revised in 1957, 1967, 1976, 1980, 1990, 2000 and 2010 to accommodate changes as global trade developed and evolved..
The International Chamber of Commerce (ICC) chose its centenary year 2019, to launch the 9th version of the Incoterms, the Incoterms 2020..
Releasing the Incoterms 2020, version, John W.H. Denton, General Secretary of the ICC said:
“Incoterms® 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.”
The Incoterms 2020 is said to include detailed notes with enhanced graphics illustrating the responsibilities of importers and exporters for each of the Incoterms® rules..
The introduction to Incoterms 2020 also includes a much 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..
As per the ICC website some of the change in the Incoterms 2020 includes
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, Delivery at Place (DAP), Delivery 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.
As part of the ICC’s endeavor to make technology accessible to everyone all essential information of the rules will be made available via a dedicated Incoterms® 2020 mobile application, which includes a wide variety of informative features, including latest news updates, event information and training opportunities..