Incoterms changes being introduced from 2020

What are Incoterms?

The International Commercial Terms, known as Incoterms, are the pre-defined commercial terms published, maintained and developed by the International Chamber of Commerce relating to the international trade of goods.

First published in 1936, Incoterms provide a worldwide common set of rules and guidelines and provide clarity and consistency to participants in the export and import of goods around the world.

Incoterms rules are intended to clearly communicate the tasks, costs, and risks associated with the international transportation and delivery of goods. Currently there are 11 defined rules represented by a series of three-letter trade terms: 

EXW – Ex Works
FCA – Free Carrier
CPT – Carriage Paid To
CIP – Carriage and Insurance Paid to
DAT – Delivered At Terminal
DAP – Delivered At Place
DDP – Delivered Duty Paid
FAS – Free Alongside Ship
FOB – Free on Board
CFR – Cost and Freight
CIF – Cost, Insurance & Freight

When will the rules change?

During 2019, the International Chamber of Commerce announced the publication of Incoterms 2020 which will replace the current rules, Incoterms 2010. The new rules will enter into force on 1 January 2020.

There will again be 11 defined rules, the only new incoterm will be DPU (Delivered at Place Unloaded), which replaces DAT (Delivered At Terminal) from the 2010 edition.

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