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International Commercial Terms Rules

The Incoterms? rules or International Commercial terms are a series of pre-defined commercial terms published by the International Chamber of Commerce (ICC) widely used in international commercial transactions. A series of three-letter trade terms related to common sales practices, the Incoterms rules are intended primarily to clearly communicate the tasks, costs and risks associated with the transportation and delivery of goods. The Incoterms rules are accepted by governments, legal authorities and practitioners worldwide for the interpretation of most commonly used terms in international trade. They are intended to reduce or remove altogether uncertainties arising from different interpretation of the rules in different countries. First published in 1936, the Incoterms rules have been periodically updated, with the eighth version—Incoterms 2010—having been published on January 1, 2011. “Incoterms” is a registered trademark of the ICC.

Incoterms 2020 main changes

• DAT term changed to DPU (Delivery at Place unloaded)

• FCA has two possible options

• CIP requires insurance clause A instead of C

• A new section of cost has been included

• Customs clearance with export, transit and import explanations

• FCA with a Bill of Lading on board notification if agreed