On 10 September 2019 the newest edition of Incoterms rules, Incoterms 2020 was released by the International Chamber of Commerce (ICC). The Incoterms rules serve as significant commercial provisions for the international sale of goods, including commonly accepted definitions and rules relating to the delivery of goods between trading partners. Since the first publication of Incoterms rules in 1936, ICC has revised regularly these rules to follow the changes in the worldwide trade system.
Aiming at the clarity and certainty in the international trade, Incoterms 2020 contains more detailed explanative notes and enhanced graphics to present the responsibilities of importers and exporters for each Incoterms rule. Incoterms 2020 also provides guidelines for the selection of the most appropriate Incoterms rule for a given transaction and for the relationship of the sales agreements with ancillary contracts.
Compared to Incoterms 2010, the main changes of Incoterms 2020 are for example that the new rules determine different levels of insurance coverage in Cost Insurance and Freight (CIF) and Carriage and Insurance Paid To (CIP). Furthermore, Incoterms 2020 contains arrangements for carriage with own means of transport in Free Carrier (FCA), Delivered at Place (DAP), Delivered at Place Unloaded (DPU), and Delivered Duty Paid (DDP).
By Lidia Suveges, Junior Associate, KCG Partners Law Firm