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ICC has launched Incoterms® 2020, the newest edition of the trade terms for the sale of goods.
Designed to provide certainty and clarity to business and traders everywhere, the Incoterms® rules were first introduced by ICC in 1936 to establish commonly accepted definitions and rules related to the delivery of goods between trading partners worldwide. Since then, ICC has periodically revised the Incoterms® rules to reflect changes in the international trade system and the 2020 edition launches during the organisation's Centenary year.
ICC says that the new version is more accessible and easier to use, including more detailed explanatory notes with enhanced graphics to illustrate the responsibilities of importers and exporters for each Incoterms® rule. The introduction also includes a more detailed explanation on how to choose the most appropriate Incoterms® rule for a given transaction, or how a sales contract interacts with ancillary contracts.
Here are a few examples of how Incoterms® 2020 can be used to make international trade easier and more efficient: It provides for demonstrated market need in relation to bills of lading (BL) with an on-board notation and the Free Carrier (FCA) Incoterms® rule. It aligns different levels of insurance coverage in Cost Insurance and Freight (CIF) and Carriage and Insurance Paid To (CIP). It also includes arrangements for carriage with own means of transport in FCA, Delivery at Place (DAP), Delivery at Place Unloaded (DPU), and Delivered Duty Paid (DDP). As well, Incoterms® 2020 includes security-related requirements within carriage obligations and costs.
ICC Secretary General John W.H. Denton AO said: "Incoterms® 2020 rules make business work for everyone by facilitating trillions of dollars in global trade annually. Because they help importers and exporters around the world to understand their responsibilities and avoid costly misunderstandings, the rules form the language of international sales transactions, and help build confidence in our valuable global trading system."
A new dedicated mobile application includes a wide variety of informative features, including latest news updates, event information and training opportunities, and dedicated training sessions will help ensure that the rules are appropriately applied. The ICC Academy, ICC's dedicated e-learning platform, is offering Incoterms® 2020 training courses, leading to the Incoterms® 2020 Certificate. The online training includes interactive case studies that allow trainees to apply their understanding of the Incoterms® rules by simulating real-life work scenarios.
Incoterms® 2020 is available for purchase (in 28 languages) at 2go.iccwbo.org
The official ICC Incoterms® 2020 United Kingdom Launch – at which the changes and their impacts will be outlined in detail by the drafters of the new rules – will take place on 15 October 2019 at the WLG Gowling headquarters in London. Those that attend will also get the opportunity to partake in the first round of London-based ICC Incoterms® 2020 official training.
Further details of the new Incoterms® 2020 rules will be featured in The Exporter magazine.
© The Exporter 2019