Incoterms® 2020 Book

The book that should be in every seller’s, buyer’s, banker’s and forwarder’s office for easy reference: Incoterms® 2020.

The purpose of this book is to:

  • To explain what the Incoterms® 2020 rules do and do NOT do and how they are best incorporated
  • To set out the important fundamentals of the Incoterms® 2020 rules: the basic roles and responsibilities of seller and buyer, delivery, risk and the relationship between the Incoterms® 2020 rules and the contracts surrounding import/export
  • To explain how best to choose the right Incoterms® 2020 rule for the particular sale contract; and
  • To set out the central changes between Incoterms® 2010 and Incoterms® 2020

 

Incoterms® 2020 Book

$127.60 inc GST and shipping

What are Incoterms®?

The Incoterms® rules define the important responsibilities of buyers and sellers for the delivery of goods under sales contracts. They are the authoritative rules for determining how costs and risks are allocated to the parties. Incoterms rules are regularly incorporated into contracts for the sale of goods worldwide and have become part of the daily language of trade.

Incoterms® 2020 contains the ICC rules for use of the 11 Incoterms® trade terms. It takes into account the latest developments in commercial practice, and updates the rules to make them more accessible and easier to use.

When do the new rules come into effect?

The new rules will enter into force on 1 January 2020. As of this date, all sales contracts should make reference to the Incoterms® 2020 rules as the latest version of the Incoterms rules.

However if your L/C is with reference to Incoterms 2010 than you should comply with the L/C requirements.

Why use Incoterms® rules in international trade?

Although other clauses for global trade exist around the world, such as the Harmonised Tariff Schedule of the United States, Incoterms® rules are global in their reach. Similarly, Incoterms® rules do not include trade terms codified for national purposes, such as the “less than truckload shipping” (LTL) rule of the United States. Unlike national trade policies, Incoterms® rules are universal, providing clarity and predictability to business.

What does “Incoterms®” stand for?

“Incoterms®” is an acronym standing for international commercial terms. “Incoterms®” is a trademark of International Chamber of Commerce, registered in several countries.

The Incoterms® rules feature abbreviations for terms, like FOB (“Free on Board”), DAP (“Delivered at Place”) EXW (“Ex Works”), CIP (“Carriage and Insurance Paid To”), which all have very precise meanings for the sale of goods around the world.

These terms hold universal meaning for buyers and sellers around the world. If you are a financial analyst in the City of London, then you might associate the acronym “FCA” with the United Kingdom’s Financial Conduct Authority. However, for importers and exporters around the world, FCA is the initials used for “Free Carrier,” or the seller’s obligation to deliver the goods to the carrier nominated by the buyer at the seller’s premises or another named place.