The new set of Incoterms® (Incoterms® 2020) has been announced by the International Chamber of Commerce (ICC).
At BIFA we await our copies of the new book being delivered so we cannot provide a detailed analysis yet. We will of course provide full information to BIFA Members via the BIFA website, e-newsletter and BIFAlink.
ICC Incoterms® are relevant for everyone dealing with sales contracts and the movement of goods including UK goods importers and exporters, logistics companies, trade financiers, insurers, shippers, freight forwarders, law firms, consultants and advisers.
BIFA was part of the International Chamber of Commerce (ICC) consultation that gave feedback to the drafting committee and made comments on the proposed changes in the 2020 edition. In the drafts that we considered, the amendments are marginal compared to 2010 and will not affect BIFA Members’ current understanding too much.
Some brief highlights trailed by the ICC are that Incoterms® 2020:
- Provides for demonstrated market needs in relation to bills of lading (BL) with an on-board notation on the Free Carrier (FCA) Incoterms®
- Aligns different levels of insurance coverage in Cost Insurance and Freight (CIF) and Carriage and Insurance Paid To (CIP).
- A change in the three-letter name for Delivered at Terminal (DAT) to Delivered at Place Unloaded (DPU).
- Includes arrangements for carriage with own means of transport in FCA, Delivered at Place (DAP), Delivered at Place Unloaded (DPU), and Delivered Duty Paid (DDP).
- Includes security-related requirements within carriage obligations and costs.
The ICC warns users to be wary of anything other than official ICC guidance; relying on information found online is a major cause of incorrect usage of Incoterms®, with adverse consequences for businesses and their insurers. We recommend awaiting the official release before finalising any plans to adapt to the new rules.
BIFA will be modifying our skills training courses where Incoterms® are referenced however we are not providing specific training on this topic as the ICC has nominated Strong and Herd as the official training organisation for the subject. BIFA has a good relationship with Strong and Herd and if a BIFA Member or one of your customers is looking for detailed training on Incoterms® 2020 then check the Strong and Herd website for details of courses available.
Copies of the new edition can be ordered from the ICC Bookshop.