On January 1st 2020 the new Incoterms 2020 became effective. The new terms replaced the Inconterms 2010. Despite the 2020 terms are similar to the previous version, the new ones bring important and relevant adaptations on International Trade concerning.
What are Inconterms?
Incoterms were provided by the International Chamber of Commerce (ICC) and the first version was revealed in 1936. The Incoterms are facilitators of commercial operations, and must be agreed between the parts responsible for the commercial transaction. The Incoterms serve as a guide between the parts in the different stages of the shipment and define the responsibility of each part.
The Inconterms, usually, are presented by 3 initials.
What has changed?
- DAT has changed to DPU
- FCA can be combined with on-board bill of lading
- CIP now requires a higher level of cover, compliant with the Institute Cargo Clauses (A) or similar clauses. CIF still requires ICC C terms only
- The seller or buyer can handle the transport themselves (as opposed to having an outside carrier do it)