Incoterms® 2020 just announced
The new Incoterms® 2020 will enter into force on 1 January 2020.
There are two key changes to Incoterms® 2020 compared to the 2010 edition:
- DAT (Delivered at Terminal) is renamed Delivered at Place Unloaded (DPU)
- FCA (Free Carriage) now allows for Bills of Lading to be issued after loading
In addition, there are some other changes:
- CIF and CIP (Cost, Insurance and Freight and Carriage and Insurance Paid to). These set out new standard insurance arrangements, but the level of insurance continue to be negotiable between buyer and seller
- Where listed, cost allocation between buyer and seller is stated more precisely
- FCA (Free Carriage), DAP (Delivered at Place), DPU (Delivered at Place Unloaded) and DDP (Delivered Duty Paid) now take account of buyer and seller arranging their own transport rather than using a third party
- Security-related obligations are now more prominent
- “Explanatory Notes for Users” for each Incoterm® have replaced the 2010 edition’s Guidance Notes, and are designed to be easier for users.
Blu’s experts will be examining the changes in more depth and we will update this page again soon. We will be sending out more customer newsletters so please be sure you are subscribed or contact your Blu account manager.