Incoterms® 2020

As mentioned in the last issue of our NOSTA newsletter, our transportation and logistics industry expected the release of the new Incoterms® version in fall of 2019. This month, the International Chamber of Commerce published the Incoterms® 2020. Ten years after the publication of the current version, the revision of the well-known rules and regulations for international trade will come into force on  January 1, 2020. This entails a number of changes.

We have briefly summarized the most important changes for you. Compared to Incoterms® 2010, there are two major developments:

• The DAT (Delivered at Terminal) clause has been changed to DPU (Delivered at Place Unloaded). This amendment means that in future any agreed place may be specified as a destination.
   
• For goods sold under the FCA (Free Carrier) clause and intended for sea transport, an on-board bill of lading may in future be issued after loading - after agreement between buyer and seller.

Further changes:

• In the clauses CIF (Cost Insurance Freight) and CIP (Carriage Insurance Paid), Incoterms® 2020 adapt insurance cover to current business practice. Until now, the seller has generally taken out insurance cover for the benefit of the buyer at a minimum level. Under the new rules, this minimum level of cover will remain in place for CIF. In the case of the CIP clause, on the other hand, the standard insurance obligation has given way to a more comprehensive “all-risk" coverage.
   
• The new Incoterms® take account of the fact that more and more trading partners are organising the transport of goods using their own means of transport. In accordance with the new Incoterms®, in future it will be possible either to conclude a transport contract or to organise the necessary transport yourself.
   
• The Incoterms® 2020 contain clear rules on the distribution of safety obligations and the associated costs. This information has been added to many articles and given greater emphasis.

The ICC Incoterms® 2020 are not mandatory for international commercial transactions. In terms of contractual freedom, the contracting parties may also effectively decide to apply Incoterms® 2010 or even older versions.

If you have further queries, please do not hesitate to get in touch with your contact person in our company at any time.