Clarifying Incoterms 2020

Incoterms 2020

In a previous blog I touched on the speculation around the launch of Incoterms ® 2020. This has now been published.  The main focus of the new publication has been to better steer users towards the right Incoterms rule for their sale contract.

The main distinction introduced in Incoterms 2010 rules has been retained for Incoterms 2020.  Namely: the distinction between rules for any mode or modes of transport and rules for sea and inland waterway transport.  As follows:

Multi-mode:

  • EXW – Ex Works
  • FCA – Free Carrier
  • CPT – Carriage Paid to
  • CIP – Carriage and Insurance Paid to
  • DAP – Delivered at Place
  • DPU – Delivered at Place unloaded (replacing DAT)
  • DDP – Delivered Duty Paid

Maritime:

  • FAS – Free Alongside Ship
  • FOB – Free on Board
  • CFR – Cost and Freight
  • CIF – Cost Insurance and Freight

Under each Incoterm the ten articles have been restructured as shown below:

  • A1/B1 General obligations
  • A2/B2 Delivery/Taking delivery
  • A3/B3 Transfer of risks
  • A4/B4 Carriage
  • A5/B5 Insurance
  • A6/B6 Delivery/transport document
  • A7/B7 Export/import clearance
  • A8/B8 Checking/packaging/marking
  • A9/B9 Allocation of costs
  • A10/B10 Notices

Prior to 2020, the Trade and Export Online Learning units relating to Incoterms will be updated to include more detailed descriptions of Incoterms 2020, which will replace similar content currently relating to Incoterms 2010.  Meanwhile, this simple summary is reflected in the content. Click on the image below to learn more.

 

About the author

David Millett is a coach and trainer who works regularly for RWA. He has a long experience in trade issues with a background in banking, where he was Head Of Trade Product Management for the Royal Bank of Scotland, before becoming Head of Business Development for UK Export Finance’s short-term business. David is a Fellow of the Institute of Export and former Council Member for the International Chamber of Commerce UK and the British Exporters Association.

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