What are ‘new Incoterms® 2020’ and how will they impact imports and exports?
10th October 2019
The new Incoterms® are expected to appear in the last quarter of 2019, simultaneously with the centenary of the International Chamber of Commerce, and will enter into force on January 1, 2020. Incoterms® rules to facilitate international trade and encourage the best practices in cross-border transactions.
New Incoterms® aimed at making communication easier to understand and use
Incoterms were first developed in 1936 by the International Chamber of Commerce (ICC) in an attempt to simplify communicational shortfalls involved with international trade. It was through the publication of the first ever International Rules for the Interpretation of Trade Terms that we now have “Incoterms®”.
I can say that a general focus will be on making the rules easier to understand and use, to try to reduce misuse of the Incoterms® rules, which can lead to costly consequences.
Emily O'Connor, Senior Policy Manager, Commission on Commercial Law and Practice, International Chamber of Commerce
Revision of the current rules set by the International Chamber of Commerce
The aim of the 2020 new Incoterms® and the reform has been to simplify the rules. The responsibility of the reform falls on that of the Drafting Group. Moreover, this group is made up of five lawyers from the European Union, The United States of America, Australia and China.
Incoterms® 2020 will see significant changes that will affect importers and exporters across the globe. Driven by changes in the economy during the past decade, including the explosion of e-commerce. In an increasingly globalised and digitised world, international trade operations are diversifying and the world finds itself dealing with new types of importers and exporters. These are sectors and professionals that, under conventional methods, would not have had access to such opportunities and that, in many cases, do not even have specialised training in logistics or international trade.