With the new rules set to come into force from first January 2020, shipping, logistics, supply chain, and freight professionals need to refresh their knowledge now if they want to be able to use the Incoterms 2020 confidently and without errors, come to the New Year.
Some of the changes in the Incoterms 2020 rules include:
- Updates to the FCA rule regarding bills of lading.
- Updates to the levels of insurance coverage required in CIF and CIP.
- Renaming of the DAT rule to make it more fit for purpose.
- Updates to security-related obligations in several articles of each Incoterms rule.
One of the biggest updates to this edition of the trade terms is a brand-new matrix comparison tool that makes it easier and faster than ever to find the right Incoterms rule for your transaction even if you are not an expert. You can look at it horizontally or vertically, and quickly check that you are choosing the right rule. That will be an extremely useful tool – people can focus on the issues that they really care about. One thing important in each rule is who pays for what. We’ve made that information easier to find, picked out all the little costs that arise in various articles in each rule, and put them all in one place. The matrix tool is one of a number of changes and initiatives designed to make the rules more user-friendly and believed that if there is to be a legacy of this edition of the Incoterms rules, it is to help users avoid mistakes, especially those that are not experts or lawyers.