ICC’s world renowned Incoterms© rules facilitate trillions of dollars in global trade each year. ICC’s Incoterms© rules are the world’s essential terms of trade for the sale of goods. Whether you are trading with your international suppliers or customers, filing a purchase order, packaging and labelling a shipment for freight transport, or preparing a certificate of origin at a port, the Incoterms© rules are there to guide you throughout the performance of an international trade transaction with regard to the duties of the parties, costs, the transfer of risks and insurance. The Incoterms© rules provide specific guidance to individuals participating in the import and export of global trade on a daily basis.
On 1 April 2019, the International Chamber of Commerce published its preparation for the renewal of the Incoterms as of January 1, 2020. According to this message old Incoterms like EXW, DDP, FAS will disappear. It is planned that FCA will be split into two more Incoterms. FOB and CIF should no longer be used for container shipping. New Incoterms are introduced such as CNI (Cost and Insurance), DTP (Delivered at Terminal Paid) and DPP (Delivered at Place Paid). In addition, privacy and security are included in Incoterms.
The implementation of the new Incoterms© rules 2020 will have a substantial impact on international trade as the disappearing terms EXW and DDP are widspread and FOB and CIF is frequently used for container shipping today. Before Incoterms© rules 2020 will be implemented in trade transactions, it is highly advised to revise the underlying international trade contracts and the organisation of the performance under such contracts to align contractual rights and obligations with the actual organization and execution of the trade transaction.