Incoterms 2020 – What changed?

In the fall of 2019, the ICC published a new version of the Incoterms which was modified to comply with new, global trade practices. Below please find a summary of the most significant changes for your information.

• FCA (free carrier) provides the purchaser with the option to instruct the carrier to issue a bill of lading to the seller after the goods have been loaded onto the vessel
• The rules of the Incoterms 2020 provide for different minimum insurance cover for CIF (cost, insurance, freight) and CIP (carriage insurance paid)
• The use of FCA, DAP, DPU, and DDP is also admissible for shipments using the purchaser’s or seller’s own means of transport
• DAT (delivered at terminal) was renamed DPU (delivered at place unloaded)
• clear rules on the distribution of safety obligations and associated costs

Find here all Incoterms 2020 to download as PDF.

What are Incoterms?

The Incoterms (International Commercial Terms) are an essential set of rules for international commerce. They are published at regular intervals by the International Chamber of Commerce (ICC) and help the parties of a purchase agreement to arrange the obligations of seller and purchaser, and to stipulate the transfer of risk as well as the allocation of costs during the transport of goods. 

Why are Incoterms important?

Goods are transported in many different ways. Trade partners regulate with the following Incoterms clauses:

• Cost & responsibilities for any kind of transport
• When & where the handover of the goods take place
• Who bears the liability for loss or damage

Do you have any questions about the Incoterms? Please get in touch with us via incotermsgw-world.com.