Incoterms 2020, the 9th version of the international commercial trade terms, has been released by the International Chamber of Commerce (ICC), with changes to DAT, FCA and CIF terms.
The Incoterm rules form the language of international sales transactions, by helping importers and exporters to understand their responsibilities and avoid costly misunderstandings.
The ICC has revised the Incoterms rules to reflect changes in the international trade system.
Incoterms 2020 has been drafted by a Committee of Experts that for the first time included representatives from China and Australia, although most of the members are European and includes more detailed explanations on how to choose the most appropriate Incoterms rule for a given transaction.
The new Incoterms 2020 will come into force on 1 January 2020. The most significant changes we see are to the DAT, FCA and CIF terms.
– DAT (Delivered at Terminal) is renamed Delivered at Place Unloaded (DPU)
– FCA (Free Carriage) now allows for Bills of Lading to be issued after loading
– CIF and CIP (Cost, Insurance and Freight and Carriage and Insurance Paid to) set out new standard insurance arrangements, but the level of insurance continue to be negotiable
– FCA (Free Carriage), DAP (Delivered at Place), DPU (Delivered at Place Unloaded) and DDP (Delivered Duty Paid) now take account of buyer and seller arranging their own transport rather than using a third party
We will review in depth and update our blog posting with more detail in due course.
The ICC Incoterms 2020 will be launched in the UK at a presentation on Tuesday 15th October 2019.
Incoterms 2020 is available for purchase through ICC’s e-commerce platform: https://2go.iccwbo.org/