The International Chamber of Commerce (ICC) has officially released Incoterms 2020. The updated Incoterms will take effect January 1, 2020 and will replace the current Incoterms (Incoterms 2010). The ICC has published the Incoterms for purchase on their website.
Per the ICC, some of the major changes from the current Incoterms are as follows:
- Incoterms® 2020 provides for demonstrated market need in relation to bills of lading (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 Terminal (DAT) to DPU.
- Incoterms® 2020 includes security-related requirements within carriage obligations and costs.