In September 2019 the International Chamber of Commerce (ICC) published a new version of the Incoterms, the so called "Incoterms 2020".
With the Incoterms 2020 the ICC has created a better overview for those using the terms. The new Incoterms are effective from 1st January 2020. The Incoterms 2010 can still be used, but then the applicable version should be clearly stated and adhered to.
In almost all central points, the rights and obligations of the parties to a contract correspond to the current, usual conditions. Larger systematic changes, such as those introduced ten years ago with the Incoterms 2010, will not occur in this new revision.
Summary: The most important changes in the 2020 version
- The Incoterms® clause DAT (Delivery at Terminal) was changed to DPU (Delivery at Place Unloaded), where in future any agreed place can be the destination without needing to be a “Terminal“.
- The Incoterms® 2020 take account of the proven market need regarding waybills for “Onboard“ notes and the FCA Incoterms® clause.
- Clearer presentation of costs within the applicable regulations.
- The Incoterms® 2020 adapt to current business practice regarding insurance cover in the clauses CIF and CIP. Previously the seller took out insurance for the buyer at a minimal level, which covered a range of standard, outlined risks. Under the new rules, this minimal cover remains in place for CIF, but with CIP the standard insurance requirement changes to a more comprehensive “All Risk“ cover.
- The Incoterms® 2020 take into account business practice for FCA, DAP, DPU and DDP, whereby buyers or sellers increasingly organise the transportation of goods with their own means of transport.
- The Incoterms® 2020 clauses recognise the worldwide increase in security regulations for the transportation of goods. They include clear rules on the sharing of security obligations and the associated costs.
- The Incoterms® 2020 clauses adapt the regulations to the new, global trade practices.
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