New Incoterms 2020

New Incoterms 2020

In an article for the business magazine econova lawyer Georg Huber presents the changes that Incoterms® 2020 will bring.

EXW, FOB, CIF, DDP and other abbreviations are part of daily routine in the export business. They are the trade terms of the International Chamber of Commerce (ICC) based in Paris, abbreviated to Incoterms® (International Commercial Terms). They were first published in 1936 and have been revised regularly since then, most recently in 2010.

The Incoterms® serve to facilitate worldwide trade because they enable trading partners from different countries and jurisdictions to conclude contracts with a precisely defined content without lengthy contract negotiations.

The clauses are recognised in over 120 countries, although they are neither law nor regulation, only “soft law”. But due to their universal acceptance, it is not surprising that around 90% of all international sales contracts contain Incoterm® clauses. They have become indispensable in export business.

After 10 years, the ICC, together with experts from all over the world, has subjected the Incoterms® 2010 to a new review and tried to adapt them due to past  experience and to reflect current developments. However, no major systematic changes, such as those that occurred ten years ago when Incoterms® 2010 were introduced, were made in the current version.

The new regulations can be ordered from ICC Austria (https://www.icc-austria.org). The ICC also provides an app (Incoterms® 2020), which however, cannot replace the more detailed printed brochure.

You can read the entire article here: econova RECHT Incoterms

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