International Chamber of Commerce (ICC) releases Incoterms® 2020
The International Chamber of Commerce (ICC) has released Incoterms® 2020, the globally recognised trade terms for the sale of goods, providing 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 to related to the sale of goods between trading partners worldwide. Since then, ICC has periodically revised the Incoterms® rules to reflect changes in the international trade system.
More accessible and easier to use, Incoterms® 2020 includes more detailed explanatory notes with enhanced graphics to illustrate the responsibilities of importers and exporters for each Incoterms® rule.
The introduction to Incoterms® 2020 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.
- Incoterms® 2020 provides for demonstrated market needs in relation to bills of lading (BL) with an on-board notation and the Free Carrier (FCA) Incoterms®
- Incoterms® 2020 aligns different levels of insurance coverage in Cost Insurance and Freight (CIF) and Carriage and Insurance Paid To (CIP).
- Incoterms® 2020 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).
- There is a change in the three-letter name for Delivered at Terminal (DAT) to DPU.
- Incoterms® 2020 includes security-related requirements within carriage obligations and costs.
On the release of Incoterms® 2020, 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.”
ICC want to ensure that companies get the right standard of internationally-recognised advice on a more consistent basis across the UK, so it is now making it easier for companies to access its world-class, certified training, support and expertise, and is working with the Institute of Export and International Trade and Strong & Herd as its licensed training partners nationwide to achieve this.
Incoterms® 2020 is available for purchase through ICC’s e-commerce platform — https://iccwbo.uk/pages/incoterms, as well as training sessions, and access to the UK launch event taking place on 15th October in London. The ICC Academy also offers the only online certification programme officially authorised by the world business organisation.
About the International Chamber of Commerce (ICC)
The International Chamber of Commerce (ICC) is the world’s largest business organisation representing more than 45 million companies in over 100 countries. ICC’s core mission is to make business work for everyone, every day, everywhere. Through a unique mix of advocacy, solutions and standard setting, we promote international trade, responsible business conduct and a global approach to regulation, in addition to providing market-leading dispute resolution services. Our members include many of the world’s leading companies, SMEs, business associations and local chambers of commerce.
Leave a comment
Comments will be approved before showing up.
Also in Press releases
Currently, international trade relies on billions of paper documents and antiquated laws which date back to the sixteenth century. An ordinary trade transaction involves up to 27 documents, can take three months and can cost businesses up to £80,000 – creating an administrative nightmare and keeping costs unsustainably high for SMEs.
According to new research from International Chamber of Commerce (ICC), digitalising trade would drive SME growth and put a rocket under the economic recovery from Covid.