New Incoterms® released
The Incoterms® Guidelines, issued by the International Chamber of Commerce (ICC), regulate and standardize the rights and obligations of buyers and sellers in foreign trade. They are intended to enable the parties of a sales contract to carry out international and national trade transactions in a standardized manner. The purpose of the standard clauses is to determine the costs and risk distribution between the buyer and seller.
The new, revised version of the Incoterms® will go into effect on 1 January 2020. The ICC has adapted the standard rules to current market conditions and added useful and practical guidelines.
Some fundamental changes to the 2010 version are as follows:
- The clause DAT (Delivered At Terminal) will be changed to DPU (Delivered At Place Unloaded), whereby now any (agreed) place can be the destination and does not have to be a "terminal".
- The Incoterms® 2020 take into account the proven market need for bills of lading with on-board endorsements and the FCA Incoterms® clause.
- The cost transfers are clearly displayed within the new set of rules.
- Incoterms® 2020 take business practice into account in FCA, DAP, DPU and DDP,
- that more and more sellers and buyers are using their own means of transportation to transport the goods.
- The insurance coverage (minimum coverage) in the CIF and CIP clauses is adapted to current business practice.
- The worldwide increased security requirements for the transport of goods were taken into account and clear rules for the distribution of security obligations and the associated costs are integrated.
- The rules will be adapted to new global trading practices.
There are still eleven clauses. The scope of the Incoterms® 2020 Guidelines is again divided into two categories. Seven rules apply to multimodal transport (EXW, FCA, CPT, CIP, DAP, DPU, DDP), four rules (FAS, FOB, CFR, CIF) apply exclusively to ocean- and barge transportation.
We have compiled some details on the new Incoterms® 2020 rules and prepared a chart for better understanding. Read more under Logistics | Incoterms®.