The Incoterms® 2020 Rules are on track for entry into force on January 1, 2020, and some ridiculous rumors are circulating on the Internet about the disappearance of certain rules or the creation of new ones. What are the main innovation to expect? It affects the form and the substance.
Let's start with a small reminder about the importance of these rules for international trade parties.
A revision every decade
Developed by the ICC, Incoterms® rules (for International Commercial Terms) are part of these basic rules to be known by any international trade operator. Integrated into international sales contracts, they allow the determination of the timing of the transfer of risks and charges between a seller and a buyer during a delivery. Exporter, forwarding agents, banker, insurer, carrier, buyer, everybody is concerned.
The revision, which involves ICC national committees around the world, takes place every ten years in order to adapt them in accordance with evolutions in international business practices. The last, numbering eleven, were from 2010 (after the previous ones dating from 2000), the news, also counting eleven, are about to arrive and will obviously take over, under the name of Incoterms® 2020.
In other words, the international trade world is eagerly awaiting this new version ...
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