Incoterms 2020: What you need to know

In autumn 2019 the International Chamber of Commerce ICC published the Incoterms 2020. The new regulations will enter into force on January 1, 2020. The ICC has made numerous changes and adapted several clauses in detail to current business practice. Here you can find out what will change with the Incoterms 2020.

Clauses of the Incoterms 2020

The Incoterms 2020 continue to have eleven clauses, seven of which apply to all transport and four to shipping.

Clauses for all modes of transport

The biggest change in the general clauses is certainly the elimination of the DAT clause. This was replaced by the clause DPU (Delivered at Place Unloaded). The goods are no longer deemed to have been delivered when they reach the specified terminal, but only when they reach their specific destination and have been unloaded.

The Incoterms clauses 2020 for all modes of transport are, according to their order:

Clause Stands for
EXW EX Works
FCA Free Carrier
CPT Carriage Paid To
CIP Carriage and Insurance Paid
DAP Delivered aPlace
DPU Delivered at Place Unloaded
DDP Delivered Duty Paid

An important change concerns the CIP clause. From 2020, the seller will be subject to the Cargo Clauses A institutes, with which all risks must be insured.

Incoterms 2020 for ship transport:

Unlike the CIP clause, the CIF clause has not changed much. The Cargo Clauses C institutes, i.e. the minimum insurance cover, continue to apply.

The Incoterms clauses 2020 for sea and inland waterway transport are, according to their order:

Clause Stands for
FAS Free Alongside Ship
FOB Free On Board
CFR Cost And Freight
CIF Cost Insurance Freight

You can order the exact Incoterms 2020 clauses as a book, e-book or wall map directly on the official Incoterms 2020 website.

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