New Incoterms 2020
On January 1, 2020, the Incoterms 2020 come into force and bring many changes.
The International Chamber of Commerce (ICC) has released Incoterms® 2020, a new version of the globally applicable standards on terms of delivery in international business.
In order to enable a smooth transition for all users, ICC Germany launches the new website www.incoterms2020.de.
Significant innovations to the Incoterms®:
DAT (Delivered at Terminal) is renamed Delivered at Place Unloaded (DPU).
FCA (Free Carriage) now allows the issue of bills of lading after loading.
CIF and CIP (Cast, Insurance and Freight and Carriage and Insurance Paid to).
These set new standard insurance rules, but the scope of insurance remains negotiable between buyer and seller. Where listed, the cost distribution between buyer and seller is specified.
FCA (Free Carriage), Delivered at Place Unloaded (DAP), Delivered at Place Unloaded (DPU) and Delivered Duty Paid (DDP) now take into account that buyers and sellers organize their own transportation and no longer turn to third parties.
The eleven clauses of Incoterms 2020 at a glance the structure and classification of Incoterms® 2020 correspond to Incoterms 2010.
The clause DAT (Delivered Terminal) has been changed to DPU (Delivered named place unloaded).
EXW - Ex Works / Ex works FCA - Free Carrier / Free Carrier
FAS - Free Alongside Ship / Free Longitudinal Ship
FOB - Free On Board
CFR - Cost and Freight / Costs and Freight
CIF - Cost, Insurance and Freight / Costs, Insurance and Freight
CPT - Carriage Paid To / Freight
CIP - Carriage, Insurance Paid To / Freight Insured
DAP- Delivered At Place / Delivered named place
DPU - Delivered At Place Unloaded / Delivered named place unloaded
DDP - Delivered Duty Paid / Delivered Duty Classification according to modes of transport
The Incoterms can be divided into two types of transport:
Clauses that apply to any type of means of transport: EXW, FCA, CPT, CIP, DAP, DPU, DDP.
Ship clauses that apply only to ship transport and / or inland waterway transport: FAS, FOB, CFR, CIF. •
Classification according to the type of settlement the division into four groups: •
Group E - Collection clause (EXW)
Group F - Sending clauses excluding the costs of the main transport by the seller (FCA, FAS, FOB)
Group C - Sending clauses assuming the costs of the main transport by the seller (CFR, CIF, CPT, CIP)
Group D - Arrival clauses (DAP, DPU, DDP)