Main changes in Incoterms 2020

Abstract

 International trade activities upon the participation of countries in the world have witnessed many conflicts and differences in terms of language, law and trade practices, etc. This leads to inevitable disputes and many of which can not be resolved thoroughly because there is a lack of common legal basis to make a proper and reasonable judgment. In response to these issues, the International Chamber of Commerce (ICC) launched the first International Commercial Terms (Incoterms) in 1936. 

Since its inception, Incoterms has constantly improved and innovated to keep pace with the changes and development of the world economy in the fields of transportation, cargo handling, information technology, security, insurance and customs related to freight forwarding. Up to this point, Incoterm has undergone seven revisions in 1953, 1967, 1976, 1980, 1990, 2000, 2010. Since 1980, ICC revised Incoterms after every 10 years, and the next revision is expected to be made in 2020. At this time, Incoterms 2020 has been completed and sent to the Chamber of Commerce of member countries to be translated into local languages and the Incoterms 2020 version will take effect from January 1, 2020, to the business community around the world. Incoterms 2020 surely has something new that is suitable and creates favorable conditions for sellers and buyers in international trade activities. The following article will analyse this revision.