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The Incoterms® rules were developed by the International Chamber of Commerce to facilitate international trade and for the interpretation of the trade terms that the parties to a contract of sale could agree to apply..
Incoterms® were first introduced in 1936 and were revised in 1957, 1967, 1976, 1980, 1990, 2000 and 2010 to accommodate changes as global trade developed and evolved..
Currently, in its 8th version (Incoterms® 2010), the Incoterms® rules have become an internationally recognized and accepted standard and are used worldwide in international and domestic contracts for the sale of goods and have become an essential part of the day-to-day international trade and domestic trade..
The ICC which is celebrating its centenary year recently announced the release date for the latest version of these rules which is the Incoterms® 2020..
Incoterms® 2020, will be released in early September 2019 and come into effect on 1 January 2020..
As per the ICC, Incoterms® 2020 reflects the ever-changing nature of today’s international trade system.. During the drafting process, several revisions were made in order to ensure that the Incoterms® rules clearly and accurately reflect the current trade practices of today..
From early September 2019, users of the Incoterms® rules can adapt, prepare and train their businesses and people to be able to start using the new set of rules from the 1st of January..
Convenience and Technology is key
In keeping up with the current market trend of digitalisation, Incoterms® 2020 will be made available in digital (online and offline) and hard copy formats.. Along with this, ICC’s worldwide network of offices, known as national committees, will also be offering translated versions in 27 languages which is currently under way..
In addition, ICC will also be releasing Incoterms® 2020 as a Mobile Application which will be available on IoS and Android.. Users can access latest news updates, event information and training opportunities on the app while also allowing users to contact ICC verified experts for real-time advice..
In keeping up with the global drive towards the use of technology and blockchain, ICC will will develop customisable, self-executing digital sales agreements, incorporating the new Incoterms® rules with the support from Perlin, a Singapore-based distributed ledger technology company..
This incorporation of smartIncoterms® rules, or smartINCOs, will help facilitate trade by reducing costs and barriers faced by importers and exporters worldwide, notably micro, small and medium enterprises (MSMEs) and will utilise sensor data and application programme interfaces (APIs) to prompt triggers for self-execution, sustainability, and other environmental, social and governmental (ESGs) performance indicators to improve trade facilitation..
Dorjee Sun, CEO and co-founder of Perlin said: “This platform will be a source of truth to allow for the pre-population of other related trade documents and to minimise error rates in trade documentation.”
Incoterms® rules are key for many businesses and therefore requires intense training, a fact that the ICC has recognised and is offering dedicated training sessions to ensure that Incoterms® 2020are used correctly by its users..
If you recall, the ICC had previously issued notifications on how to spot fake Incoterms® rules, or trusting the guidance of fake Incoterms® rules providers..
So, the shipping, freight, trade and logistics industry will be preparing for yet another 2020, the original 2020 being the #IMO2020 both of which are a mere 167 days away as of this article.. 🙂
Looking forward to to the updated version of INCOTERMS in January 2020