New Incoterms will enter into force on 1st January 2020, with important updates to previous version
ICC Incoterms® are common guidelines introduced by the International Chamber of Commerce for the regulation of international sales transactions and to incentivise a climate of reciprocal trust in the overall, worldwide system of exchanges. Knowledge and the correct use of Incoterms® enables economic professionals operating abroad to avoid any pitfalls and misunderstandings which would inevitably result in costs and delays in trading relations. They are aimed at exporters and importers, as well as all other professionals who during shipment, ancillary and logistics operations, assist the former in the delicate international goods transfer process.
Since the first year of their publication, 1936, Incoterms® have been periodically reviewed. Over the last thirty years, new versions of Incoterms have always been issued at the turn of each decade (1990, 2000 and 2010) and the tradition will soon be repeated, with the entry into force of the 2020 Incoterms on 1st January next year.
The Incoterms® updating process for bringing the 2010 edition up to date already started in 2016. The aim is to respond to changes which have occurred over the last few years in the sector of international shipment and import/ export, in increasingly close contact with digitalisation. The review is carried out by a Committee of Experts, the Drafting Group ICC, mostly containing representatives of European countries, despite for the first time ever also welcoming representatives of China and Australia.
The 2020 version will be available in over 29 different languages and will be launched all over the world by the ICC, with a programme of over 250 events and training seminars worldwide. The 2020 Incoterms® aim to add more clarity and concision to agreements, by limiting the free interpretation thereof and any subsequent misunderstands, through the use of practical examples which will make choosing the right Incoterm an easier task. The aim is also to provide more precise and stringent regulations for the insurance of shipments and the link between Incoterms® and international sales Agreements. The main new feature introduced by the 2020 Incoterms® is the introduction of a new CNI (“Cost and Insurance”) solution, designed to resolve different disputes regarding the payment of customs duties, bridging the gap between FCA and CFR/CIF. The CNI Incoterm would require exporters to take on responsibility for international insurance, whereas the burden of shipment risk would shift from the seller to the purchaser at the port of departure.
More details will be available soon, in the meanwhile take a look at the 2010 Incoterms® on our website
While you wait, download our 2010 Incoterms® table!
