Did you know
Incoterms® 2020
Despite the most recent version of the Incoterms® already being in place since beginning of this year, we would like to provide you with some valuable information regarding this topic.
What are the Incoterms®?
The word “Incoterms” is an abbreviation for INternational COmmercial TERMS. They are commonly used to help buyers and sellers to determine the terms of delivery and insurability of the goods. Thus, Incoterms® essentially define the transfer of risk and costs from the seller to the buyer. Publisher is The International Chamber of Commerce (ICC) in Paris.
(How) do they affect my business?
It is crucial to understand not only the obligations that fall under the specific Incoterms® you agreed upon with your seller or buyer but also to know your rights. It often is a neglected factor in negotiations despite having the potential to significantly impact implied responsibilities and costs.
Editions
First publication in 1936 with updates in 1953, 1967, 1976, 1980, 1990, 2000, 2010 and most recently in 2020. Make sure to always refer the edition (year) when conducting international trade business.
Incoterms 2010 vs Incoterms 2020
What are the changes? To name a few:
ncoterms® 2010 vs Incoterms® 2020: What are the changes? To name a few:
DAT (Delivered At Terminal) has been renamed to DPU (Delivered at Place Unloaded) The change was made in order to show that the goods can be delivered to any place and not just a terminal
Incoterms® 2020 includes clearer and more detailed security-related obligations on carriage and on export/import clearance of each Incoterms® rule. Costs relating to these requirements also appear in the consolidated costs articles.
At a glance
The below chart shows a basic overview of the latest version of Incoterms® 2020.
It can help as a general guidance, but we recommend to always consult the actual publication (Incoterms® 2020 rule book) for detailed references.
If you have any further questions regarding this topic and/or need assistance, feel free to contact us at any time - We are more than happy to help! Additionally, Stefan Schaefer (CEO of expectus GmbH/Inc.) is a certified Incoterms® 2020 trainer.
If you have any further questions regarding this topic and/or need assistance, feel free to reach out at any time! We are more than happy to help and can provide additional insight via our certified trainer on the Incoterms® 2020 rules.
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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. The Incoterms® Rules are protected by copyright owned by ICC. Further information on the Incoterm® Rules may be obtained from the ICC website www.iccwbo.org.The Incoterms® Rules are protected by copyright owned by ICC. Further information on the Incoterms® Rules may be obtained from the ICC website.