Updated Incoterms 2020
The new 2020 Incoterms to replace the current 2010 versions are now published. When negotiating freight terms in contracts it is important to be clear which Incoterms are being used. If not specified from the 1st January it will be assume that the new version applies. Efforts have been made by International Chamber of Commerce (ICC) to make the terms much easier to use. They have adopted a new layout in the hope of reducing the common error of using the wrong Incoterms. Often both shippers and buyers have not released they are selling or buying under the wrong term until something goes wrong.
The new format endeavours to make it much easier to establish the differences and the responsibilities which each Incoterm comes with.
The international Chamber of Commerce have highlighted the following rule changes:
- The difference in in insurance terms between CIF and CIP
- On board notation on Bills of lading under FCA terms
- DAT is changed to DPU
- Carriage using the seller’s or buyer’s own vehicles in DAP,FCA,DPU and DPP
- Security related issues haved been added to the carriage obligations and costs
- Both the format and title has been changed in Explanatory Notes for Users
Our Incoterms will be update to reflect the new 2020 terms.