Incoterms 2020 vs 2010

Incoterms, or International Commercial Terms, are essential rules in international trade, defined by the International Chamber of Commerce (ICC). They clarify the responsibilities of buyers and sellers in international transactions. The 2020 version of the Incoterms introduced several changes compared to the 2010 version, aiming to better meet the current needs of global trade.

Key changes between 2010 and 2020

1. New terms and deletions: The 2020 version removed the term DAT (Delivered at Terminal) and replaced it with DPU (Delivered at Place Unloaded), offering more flexibility regarding the place of delivery.

2. Increased security: Incoterms 2020 place greater emphasis on security obligations in transport, reflecting the growing importance of safety in international trade.

3. Transport and insurance costs: The 2020 rules clarify transport and insurance costs, particularly for the terms CIF (Cost, Insurance and Freight) and CIP (Carriage and Insurance Paid To), where the required level of insurance has been adjusted.

4. Multimodal transport: Incoterms 2020 better account for the realities of multimodal transport, thus facilitating transactions involving multiple modes of transport.

Practical advice for businesses

• Updating contracts: Ensure your commercial contracts use Incoterms 2020 to avoid any legal ambiguity.
• Continuous training: Regularly train your staff on the new rules to ensure clear understanding and correct application.
• Consulting experts: In case of doubt, consult a customs expert or a lawyer specializing in international trade to ensure your transactions comply with the latest standards.

By adopting Incoterms 2020, businesses can benefit from greater clarity and security in their international transactions while adapting to the changes in global trade.