INCOTERMS® UPDATE

Incoterms® are a series of regulations published by the International Chamber of Commerce ( ICC ) which define the responsibilities of buyers and sellers in international commercial transactions.


Disclaimer: The following information is based on the information provided on the ICC website; for detailed explanation reference is made to International Chamber of Commerce (ICC) publication INCOTERMS® 2020. This document is provided to our customers for informational purposes only. Please refer to the official text of the ICC for a full and detailed description of all rights and liabilities arising from the use of the aforementioned Incoterms® (https://iccwbo.org).

 

IncoTerms 2020 Graphic

 

  • General Information
    • Incoterms® are a series of regulations published by the International Chamber of Commerce (ICC) for use in international commercial transactions. The first edition was published in 1936. These regulations are reviewed approximately every ten years to ensure they reflect current world trade practices whilst also making them more accessible and easier to use.

      Goods move across international borders as a result of a sale involving a buyer and a seller. The contract of sale should define the responsibilities of both parties in respect of both the physical nature of the goods and the movement of the consignment. The buyers and sellers have various options open to them as defined by Incoterms®.

      Incoterms® clarify the tasks, costs and risks to be borne by the buyer and seller and identify at which point these risks transfer to another party.

      A new edition, Incoterms® 2020, became effective as of the 1st January 2020. As of this date all sales contracts should make reference to Incoterms® 2020 sales terms.
  • Categories
    • There are two categories from which Incoterms® users identify the correct terms for their particular requirements.

      The two categories cover :-

      Terms for any Mode or Modes of Transport

      and :-

      Terms for Sea and Inland Waterway Transport
  • Number of Incoterms®
    • Incoterms® 2020

      There are 11 Incoterms®, as with Incoterms® 2010. Please refer to the below terms.

      Terms for any Mode or Mode of Transport

      EXW – Ex Works
      FCA – Free Carrier
      CPT – Carriage Paid To
      CIP – Carriage and Insurance Paid to

      DAP – Delivered at Place
      DPU – Delivered at Place Unloaded
      DDP – Delivery Duty Paid

      These terms all need to specify the place of delivery or destination.

      Terms for Sea and Inland Waterways Transport

      FAS – Free alongside ship
      FOB – Free on Board

      The above 2 terms are to a named port of loading.

      CFR – Cost and Freight to
      CIF – Cost, Insurance and Freight to

      The above 2 terms are to the named port of destination.
  • Key Changes Incoterms® 2020 to Incoterms® 2010

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