2020: Most recent version, entry into force on January 1st, 2020
Previous versions: 1990, 2000, 2010
In September 2019, the International Chamber of Commerce (ICC) launched the newest version of Incoterms®, the Incoterms® 2020. These rules will enter in application on January 1st, 2020.
The ICC’s official Incoterms® rules to be used as national and international trade terms. Incoterms® facilitate the transaction of world trade. They clearly identify and define the respective obligations of each of the parties in the trade, the Seller and the Buyer, for the delivery of goods specified in a sales contract; they greatly contribute to the reduction of inherent risks of legal disputes. Incoterms® essentially point out the obligation, costs and risks in relation to the sale and delivery of goods between a Seller and a Buyer.
The 2020 Incoterms®, numbering 11, are now incorporating specific guidance in the following elements: the growth of global trade giving a more immediate access to markets across the world, transactions of goods of all kinds have now reached a greater number of countries in greater quantities, more variety and at a faster rhythm. As volume and complexity of all these transactions increase, so do possibilities of misunderstandings, bringing forth expensive dispute settlements especially when sales contracts are not properly redacted.
The 2010 Incoterms® advisory notes are, along with the 2020 Incoterms®, detailed explanations legally binding as integral part of a contract. They are grouped, for each Incoterms®, under 10 sections (Obligations for each party). They represent good business practices regarding sales and purchases of goods between businesses (B2B).
The ICC, through a unique mix of advocacy, solutions and standard setting, promotes international trade, responsible business conduct and a global approach to regulation, in addition to providing market-leading dispute resolution services. This guarantees that the Incoterms® 2020 meet the needs of all companies worldwide.
To know more about Incoterms 2020, read entire article: The new ICC Incoterms 2020
To know more regarging Incoterms 2010, read entire article: The new ICC Incoterms® 2010 – ICRIQ.com, April 2011
Our interventions regarding Incoterms® would target such areas as:
Targeted elements in Incoterms®
- The notions of “Seller” and “Buyer”
- “Obligations” of parties (“Seller” and “Buyer”)
- Customs formalities (import and/or export)
- Transportation and cargo insurance
- Checking and inspection of goods, packaging, markings
- Risk transfer points : identification of the named place of delivery (risks of loss or of damage to the goods until they have been delivered in accordance to term)
- Distribution of costs and fees
- Strategy, Management, Support
IncoBoard© : Incoterms® 2020 – You can buy “Incoterms®2020” and related products on ICC’s new e-commerce platform ICC Knowledge 2 Go in both print and digital formats.
For more information and details: https://iccwbo.org/resources-for-business/incoterms-rules/incoterms-2020/
IncoBoard© : Incoterms® 2010 – Obligations and responsibilities (Costs) – ICRIQ.com, April 2011