One of the first changes for this new year is the implementation of new Incoterms® 2020 starting on January 1, 2020. The Incoterms® rules, published by the International Chamber of Commerce (ICC), are the world’s essential terms of trade for the sale of goods. Incoterms® provide specific guidance to individuals and entities participating in the import and export of global trade on a daily basis.
Incoterms® were last updated 10 years ago in 2010, so needless to say there have been some changes. The most important changes include:
- DAT: Delivered at Terminal is no longer a term of sale in the 2020 revision. This has been replaced with DPU: Delivered at Place Unloaded
- Minimum insurance coverage on insurance contracts have been updated
- Carriage Contracts have been modified to accommodate changes in transport completed by either the buyer or seller
- EXW and DDP highlight and emphasize the risks of import and export
Husch Blackwell has provided this easy reference chart for clients to quickly identify any changes applicable to its unique situation.
