Want to learn how to use Incoterms® 2020 effectively..?? Then read this..
For the past 84 years, Incoterms® has been the cornerstone of global commercial trade, for robust trade negotiations directly or indirectly between parties and the rules have become the standard in international business rules.. BUT, THERE IS A BIG PROBLEM..
As per Emily O’Connor, Director of Trade and Investment for the International Chamber of Commerce (ICC), “people will frequently choose the wrong Incoterms® rule for their transaction”..
O’Connor has emphasised the importance for anyone who uses the Incoterms® rules to learn or re-learn them – even if you consider yourself an expert – in order to avoid costly mistakes in the process of shipping their goods..
There are several consequences of using the incorrect Incoterms® and users need to fully comprehend what it means when they put a three-letter Incoterms® rule into their sales contract..
But no worries, credible and reliable guidance is at hand for you now..
Its official – Incoterms 2020 has been released
Incoterms 2020, the 9th version of the Incoterms® rules has been in the making for a while now.. Following its introduction in Incoterms® in 1936, these international commercial (Inco) trade terms were revised in 1957, 1967, 1976, 1980, 1990, 2000 and 2010 to accommodate changes as global trade developed and evolved..
The International Chamber of Commerce (ICC) chose its centenary year 2019, to launch the 9th version of the Incoterms®, the Incoterms® 2020..
Incoterms® 2020 release date announced
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 rules and how to spot fakes
For the past 80 years, Incoterms® by ICC has been the cornerstone of global commercial trade, creating the basis for robust trade negotiations directly or indirectly involving sellers, buyers, shipping lines, truckers, forwarders, clearing agents, chambers of commerce, legal firms, courts, etc etc..
The rules have been developed and maintained by experts and practitioners brought together by the ICC.. Launched in mid-September 2010, Incoterms® 2010 came into effect on 1 January 2011 and is the latest version till it will be replaced by Incoterms 2020 in 2019..
Naturally and as with any legitimate business or undertaking there are always scrupulous elements trying to take advantage in the market.. In this case, although the Incoterms 2020 will be launched later on in 2019, information or training sessions claiming to explain Incoterms® 2020 has already begun to emerge on a number of websites from non- ICC affiliated providers..
Misuse of the Incoterms® rules can lead to costly mistakes, making it essential to learn about the renowned terms –such as Delivered at Place (DAP), Free Carrier (FCA) and Free on Board (FOB) – from a trusted and credible source like the ICC..
In order to assist the trade in avoiding inaccurate or misleading information on Incoterms® 2020, the ICC has issued a notification containing 3 ways to spot fake Incoterms® rules Information..