On 1 January 2020, the eighth revision of the Incoterms rules will enter into force, in other words, the set of rules designed to regulate the obligations and rights of exporters and importers in international trade. They are used in international sales contracts to define the obligations of the parties, and although they lack any legal force, they are recognized for their constant use worldwide.
The word Incoterm is an acronym that comes from the Anglo-Saxon expression International Commercial Terms, and are elaborated, and continuously updated, by the International Chamber of Commerce. Shipping companies, freight forwarders, customs agents… all companies without exception take these supranational rules into account.
In Operinter, a global logistics operator with presence in four of the five continents, it is no exception, in fact, in the Incoterms area of its website coexist since 2010 with those that will enter into force next year.
Incoterms 2020
– The most important novelty is that the DAT (Delivered At Terminal) is replaced by the new incoterm DPU (Delivered At Place Unloaded) in which it is possible to continue arranging door-to-door transport. Also with the commitment that the seller is not responsible for the tax formalities at destination but the recipient.
– In the case of the FCA (Free Carrier-Free Carrier) the new rules include the possibility that the seller can have a copy of the transport document, which is considered essential to prove that delivery has been made.
-As for the CIP (Carrier and Insurance Paid To – Transport and Insurance paid) the Incoterms 2020 set new maximum insurance conditions, with the coverage of greater risks and the fixing of higher compensation.
-The new Incoterms remain the 11 distributed between intermodal Incoterms and maritime Incoterms. They will continue to be led by classics such as the EXW, the CIF or the FOB.
Other details
In addition, from the 2020 version onwards, the use of the FCA will allow Bills of Lading to be issued after the goods have been loaded.
On the other hand, the new regulation includes detailed explanatory notes with graphs illustrating the responsibilities of importers and exporters for each rule.
The new Incoterms also include notes on which one to choose depending on the commercial operation or how a sales contract can interact with other ancillary contracts (transport or insurance).
Although this new nomenclature comes into force at the beginning of the year, Incoterms from earlier versions, such as 2010, can still be used, although it is advisable to use the most up-to-date version.