Incoterms 2020

Just received my copy of Incoterms 2020 published by the International Chamber of Commerce. The book is well structured and clearly written. Incoterms are updated every 10 years so there are significant changes in each version.

Incoterms 2020 presents the rules and explanatory notes in simple language along with useful illustrations. The introduction informs the reader about what Incoterms rules do and do not do. For example, Incoterms rules describe obligations, risk, and costs between buyers and sellers. Incoterms do not deal with title or ownership of the goods, which is a common misperception.

Some of the changes made to Incoterms 2010 rules in the Incoterms 2020 rules include:

  • Bills of Lading with an on-board notation and the FCA rule
  • Costs, where they are listed
  • Different levels of insurance coverage in CIF and CIP
  • Arranging for carriage with seller’s or buyer’s own means of transport in FCA, DAP, DPU, and DDP
  • Change in the three-letter initials for DAT to DPU
  • Inclusion of security-related requirements within carriage obligations and costs
  • Explanatory notes for users

This post is not a book review but an introduction to a valuable resource for anyone involved in trade. I plan to study Incoterms 2020 and incorporate some formal training in the next few months so that I can provide guidance to clients.