The International Chamber of Commerce (ICC) is celebrating 100 years of guiding and governing global trade this year, and in tandem with its centennial, it is preparing for the release of Incoterms® 2020. If your organisation is involved in international trade, these changes will most likely affect your import and export activities.
A bit of history
Incoterms® (short for international commercial terms) have become essential to global commerce, setting forth rules and regulations that define contractual trade terms for international buyers and sellers. Since their inception in 1936, Incoterms® have been relied upon by importers, exporters, lawyers, and transportation companies on a daily basis to provide clarity and guidance in their trade activities.
Over the past 84 years, Incoterms® have undergone significant changes to account for advancements in logistics and technology, from expanding rules to include terms for non-maritime transport, i.e., rail and air, to incorporating contemporary practices such as electronic messaging and processing. Incoterms® 2020 will be released in September 2019 and come into effect on January 1, 2020, updating Incoterms® 2010. The changes are designed to help prepare businesses for the next century in international trade.
How does this apply to you? Ask the experts
The standard trade definitions set forth in Incoterms® are incorporated into international trade contracts, delineating responsibilities for important aspects such as shipping, insurance, and tariffs. Incoterms® promote clarity between parties, reducing misunderstandings that lead to disputes and litigation. C4T’s customs experts can help you begin linking Incoterms® 2020 to customs procedures once they become available so you are ready when they take effect.
More information on Incoterms®
The ICC website allows you to sign up for regular Incoterms® updates. In addition, C4T will be addressing the implications of the changes on our blog and social media channels once they are released. Stay tuned by following us on LinkedIn, Twitter, Instagram and Facebook, or bookmark the C4T Inspire blog.