On January 1, 2020, the new Incoterms 2020 came into force, which came to replace the Incoterms of 2010. Despite the Incoterms 2020 being very similar to the previous version, the changes introduced bring greater clarity in the distribution of transport costs between the seller and the buyer.
What are Inconterms?
Incoterms have existed since 1936, were created by the International Chamber of Commerce and facilitate commercial operations. They must be agreed between the parties responsible for the commercial transaction, serving as a guide between them regarding the responsibility of each one at the different times of the transport of the goods.
Incoterms are usually presented by three letters.
What has changed with Inconterms 2020?
- DAT (Delivery at Terminal) became DPU (Delivered at Place Unloaded)
- FCA can be combined with the Bill of Lading (BL), that is, the BL can become the responsibility of the seller.
- CIP now requires a higher level of cargo insurance coverage – Institute Cargo Clauses (A), while CIF maintains the level of cargo insurance coverage – Institute Cargo Clauses (C)
- The seller or the buyer can use their own means of transport to transport the goods (they are not obliged to hand over the transport to a third party)
