Introducing Incoterms 2020
As you are probably aware, the Incoterms rules are reviewed every 10 years, with the last revision Incoterms 2010 set to be replaced by Incoterms 2020 on January 1st 2020.
You will be pleased to hear that there have only been minor amendments made to the 2010 revision, and the ICC have highlighted them in this article:
Free Incoterms guide:
In addition to the above advice, The Alliance Shipping Group has published a useful matrix reflecting these changes which can be used in conjunction with the ICC official publications. To download a copy of this, please click here
Do you need to take any action?
Our advice is to make sure relevant staff are aware that the new rules are applicable from 1st January 2020. Although, the Incoterms 2010 will still remain valid, it is important that any usage of Incoterms in contracts and on commercial documentation clearly states the Incoterm revision that applies (i.e. Incoterms 2010 or Incoterms 2020) so there can be no confusion or ambiguity surrounding the responsibilities of all parties involved.
When incorporating Incoterms into a contract, or a sale, the format used has not changed and should follow: [Incoterm] + [Named place of destination] + [Incoterms revision] (e.g. CPT Sydney Port, Australia Incoterms 2020)
Additionally, although in the main the Incoterms have not changed significantly, DAT has been replaced with DPU, so the relevant people in your orginisation need to be aware of this amendment, and relevant systems updated to include this as an option.
Our staff are able to provide training to regular customers on Incoterms and a host of topics surrounding international trade. Please speak to your account manager if this is of interest to you.
The Alliance Shipping Group.