INCO Terms Changes For 2020
The internationally recognised shipping terms – or ‘Incoterms’ – are currently being amended by the International Chamber of Commerce (ICC) and are expected to be introduced later this year, being fully effective by January 1, 2020.
It has become customary to revise Incoterms at the beginning of each decade, as was the case in 1990, 2000 and 2010, and it seems next year will be no exception.
The drafting committee, which is largely made up of European members, includes representatives from China and Australia for the first time as it represents 150 ICC members.
Customs Insights understand that the below key changes are being considered :
- Removal of the Term FAS (Free Alongside Ship).
- Splitting FCA (Free Carrier) into two terms for different modes.
- Reinstate FOB (Free On Board) & CIF (Cost, Insurance & Freight) as multi-modal terms.
- Creation of a new incoterm CNI (Cost & Insurance).
- Splitting DDP (Delivered Duty Paid) into two terms to allow for terminal and door duty paid deliveries.
The committee is also understood to be analysing other issues, which include:
- Transportation security.
- Regulations on transportation insurance.
- The relationship between the Incoterms and the International Sale Contract.
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