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ICC RELEASES INCOTERMS®2020

ICC RELEASES INCOTERMS®2020

Incoterms® rules are the trade terms essential for international commerce. Since 1919, the year that the Internacional Chamber of Commerce (ICC) was founded, that this organization has been focused in the purpose of making international commerce more developed, safe and fluid. Harmonizing definitions and rules was of paramount importance, and the first Incoterms®rules were published by ICC in 1936, and have been developed since then.

Besides harmonizing and creating patterns for international commerce, it is also of vital importance the identification of risks, tasks and liabilities which may exist and be conscientiously and responsibly attributed or shared between buyer and seller.

Incoterms® help, define and guide the international buyer and seller, and are an important source of security for international relations, with its globalizing tendency and higher degree of clarity, security and predictability.

At the time of the Centenary year of ICC, this Chamber has now published Incoterms®2020, available since the beginning of September 2019, which will enter into force on January 1st, 2020. These new Incoterms® shall be applicable to contracts entered in after that date, and it is expected that courts and arbitration consider any reference to Incoterms® as being made to the 2020 version.

It is vital that the contractual parties immediately define, in a consensual and unequivocal mode, which version of Incoterms® is applicable to the contract. To contracts already entered until this date, unless otherwise expressly agreed, Incoterms® 2010 are still applicable.

The changes that were introduced in Incoterms® are based on security and clarification needs that have been studied and developed. There is a change in the designation of Incoterms® DAT (Delivery at Terminal), which is now designated as DPU (Delivery at Place Unloaded), and new requisites of security are inserted under the obligations and costs of transport. Several levels of insurance coverage are inserted under Incoterms® CIF and CIP, and references to Bill of Lading are included in Incoterms® FCA, as well as references and regulations regarding transportation by own means in various other Incoterms®.

Incoterms® concerning situations where cargo is carried only by sea and inland water still exist (FAS, FOB, CFR e CIF) along with the Incoterms® applicable to all means of transportation (EXW, FCA, CPT, CIP, DPU, DAP e DDP).

 

The Incoterms® Rules are protected by copyright owned by ICC.  Further information on the Incoterm® Rules may be obtained from the ICC website [insert hyperlink].  Incoterms® and the Incoterms® 2020 logo are trademarks of ICC.  Use of these trademarks does not imply association with, approval of or sponsorship by ICC unless specifically stated above.