INCOTERMS 2020 published
Published on 10 September 2019, the Incoterms ("International Commercial Terms") define the rights and duties of buyers and sellers in international trade. These general terms and conditions, whose inclusion in the contract requires an express agreement between the parties, have been thoroughly revised. The new terms take effect on 1 January 2020 and are intended to account for changes in shipping and commercial practices.
Contrary to expectations, the changes do not include the elimination of EXW, the division of FCA or the introduction of a new CNI (Cost and Insurance) term, but rather consist primarily of changes to the content of the existing terms. In addition to the inclusion of transport security requirements, changes to the shipping options available to the sender in FCA, DAP, DPU and DDP, restructuring of insurance coverage in CIP und CIF and the change from DAT to DPU, the ICC's Incoterms guide book is now much clearer and more focused on practical issues; in particular, explanatory comments make it easier to select the appropriate INCOTERMS and include in the contract.
Although the revised INCOTERMS have not brought the expected changes, companies should nevertheless check whether action is needed with regard to their own contracts and whether the interpretation of the individual INCOTERMs has shifted.
Further information regarding the significant changes we outlined in this PDF.