The year of 2020 is coming. For the next few months, Incoterms 2020 will officially take effect. To have an overview about Incoterms 2020, Atom Logistics will extract the official information from website of International Chamber of Commerce for the changes of Incoterms 2020.
“More accessible and easier to use, Incoterms 2020 includes more detailed explanatory notes with enhanced graphics to illustrate the responsibilities of importers and exporters for each Incoterms rule. The introduction to Incoterms 2020 also includes a more detailed explanation on how to choose the most appropriate Incoterms rule for a given transaction, or how a sales contract interacts with ancillary contracts.”
Moreover, Incoterms 2020 give further details about relation to bills of lading (BL) with an on-board notation and the Free Carrier (FCA) Incoterms rule.
Incoterms 2020 also provides different levels of insurance coverage in Cost Insurance and Freight (CIF) and Carriage and Insurance Paid To (CIP).
Incoterms 2020 includes arrangements for carriage with own means of transport in FCA, Delivered at Place (DAP), Delivered at Place Unloaded (DPU), and Delivered Duty Paid (DDP).
There is a change in the three-letter name for Delivered at Terminal (DAT) to DPU.
Incoterms 2020 includes security-related requirements within carriage obligations and costs.
On the release of Incoterms 2020, ICC Secretary General John W.H. Denton AO said:
“Incoterms 2020 rules make business work for everyone by facilitating trillions of dollars in global trade annually. Because they help importers and exporters around the world to understand their responsibilities and avoid costly misunderstandings, the rules form the language of international sales transactions, and help build confidence in our valuable global trading system.”
Atom Logistics will be back with detailed notes analyzing more about Incoterms 2020.
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