Incoterms
Different practices and legal interpretations between traders around the world required a common set of rules and guidelines, which is why the ICC (International Chamber of Commerce) published the first Incoterms rules in 1936, and has maintained and developed them ever since.
Incoterms 2020 are effective from 1 January 2020. Incoterms are recognized and widespread trading clauses, prepared by the ICC, which regulate and describe the parties rights and obligations in relation to risk, transport and insurance in connection with trade purchases.
The clauses regulate, among other things, who bears the risk of damage to the goods or loss during transport, who must pay for insurance of the goods during transport, and how the goods are to be delivered.
The ICC has developed a guide on how to choose the most appropriate Incoterm for a given purchase / sale transaction, and it explains how the sales contract interacts with other contracts made in connection with a sale, including transport, insurance and letter of credit agreements.
Incoterms 2020 contains two significant changes, compared to the 2010 edition:
DAT (Delivered at terminal) is renamed to DPU (Delivered at place unloaded).
FCA (Free carrier) now also allows the bill of lading to be issued after loading.
Following changes have also been made:
CIF (Cost, Insurance and Freight) and CIP (Carriage and Insurance Paid to): These trade clauses contain new standard insurance agreements, but the insurance coverage must continue to be negotiated between buyer and seller.
FCA (Free Carrier), DAP (Delivered at Place), DPU (Delivered at Place Unloaded) and DDP (Delivered Duty Paid) now take into account that the buyer and seller can arrange transport themselves, instead of buying transport from third parties.
The International Chamber of Commerce (ICC) has developed a free app that gives you an easy and simple overview of Incoterms 2020.
Download app to Apple
Download app to Android
Call us. We will find a solution that fits your needs.
Incoterms 2020 are effective from 1 January 2020. Incoterms are recognized and widespread trading clauses, prepared by the ICC, which regulate and describe the parties rights and obligations in relation to risk, transport and insurance in connection with trade purchases.
The clauses regulate, among other things, who bears the risk of damage to the goods or loss during transport, who must pay for insurance of the goods during transport, and how the goods are to be delivered.
The ICC has developed a guide on how to choose the most appropriate Incoterm for a given purchase / sale transaction, and it explains how the sales contract interacts with other contracts made in connection with a sale, including transport, insurance and letter of credit agreements.
Incoterms 2020 contains two significant changes, compared to the 2010 edition:
DAT (Delivered at terminal) is renamed to DPU (Delivered at place unloaded).
FCA (Free carrier) now also allows the bill of lading to be issued after loading.
Following changes have also been made:
CIF (Cost, Insurance and Freight) and CIP (Carriage and Insurance Paid to): These trade clauses contain new standard insurance agreements, but the insurance coverage must continue to be negotiated between buyer and seller.
FCA (Free Carrier), DAP (Delivered at Place), DPU (Delivered at Place Unloaded) and DDP (Delivered Duty Paid) now take into account that the buyer and seller can arrange transport themselves, instead of buying transport from third parties.
The International Chamber of Commerce (ICC) has developed a free app that gives you an easy and simple overview of Incoterms 2020.
Download app to Apple
Download app to Android
Call us. We will find a solution that fits your needs.