What has been changed in INCOTERMS 2020?

 

In order to avoid disputes caused by different interpretations of the same trade terms in the laws of various countries, the International Chamber of Commerce (ICC) formulates general international trade practices and rules. Its INCOTERMS (International Commercial Terms) stipulates the basic obligations of buyers and sellers in international trade, such as delivery of goods to buyers and transportation costs, liability for loss and demage of goods and insurance cost.

 

ICC has made some modifications on INCOTERMS 2020:

 

1. DAT (Delivered at terminal) has changed to DPU (Delivered at Place Unloaded)

2. FCA (Free Carrier) allows to produce BL after loading

3. CIP (Carriage and Insurance Paid) seller must cover Institute Cargo Clause A or similar insurance

4. For FCA (Free Carrier), DAP (Delivered at Place), DPU (Delivered at Place Unloaded), 

DDP (Delivered Duty Paid), the transportation can be arranged by the seller or the buyer, without the use of third-party suppliers. 

 

Duty for all terms: