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Sunday Dec 15, 2024
Tuesday, 24 September 2019 02:11 - - {{hitsCtrl.values.hits}}
The International Chamber of Commerce (ICC) has released ‘Incoterms 2020’, 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 defintions and rules related to the sale of goods between trading parners 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 ancillay contracts. Incoterms 2020 provides for demonstrated market need in relation to bills of landing (BL) with an on-board notation and the Free Carrier (FCA) Incoterms rule. 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 Termnial (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 responsibilites and avoid costly misunderstandings, the rules form the language of international sales transactions, and help build confidence in our valuable global trading system.”
In line with ICC’s commitment to make technology work for all, access to essential information of the rules will be made easier than ever via a dedicated Incoterms 2020 mobile application, which includes a wide variety of informative features, including latest news updates, event information and training opportunities.
Incoterms 2020 is available for purchase at the ICC Sri Lanka Secretariat. Please contact ICCSL Secretariat on 011-2307841 or email on [email protected].
