- Incoterms 2020—major overhaul or slight adjustment?
- Original news
- Why are Incoterms changing?
- What are the key changes?
- 1. Incoterm FCA and the onboard bill of lading
- 2. Incoterm delivered at place unloaded (DPU) replaces delivered at terminal (DAT)
- 3. Increased insurance under carriage and insurance paid to (CIP)
- 4. Clarification of allocation of costs between the buyer of goods and commercial sellers
- 5. Further information on the use of buyer and/or seller’s own transport
- 6. Improved structure
- Are there any controversial changes?
- What are the implications for commercial lawyers? Will there need to be drafting adjustments?
- What are the implications for trade finance?
- What are the implications for existing contractual arrangements which refer to Incoterms 2010?
- What is best practice for incorporating Incoterms 2020 into new contractual arrangements?
Commercial analysis: Geoff Wynne, partner at Sullivan & Worcester, explains the changes and how Incoterms 2020 will clarify the responsibilities and better allocate the risk between commercial parties. However, the new terms have not accounted for financing considerations, with potential implications for structuring financings.
Sign in or take a trial to read the full analysis.
To continue reading this news article, as well as thousands of others like it, sign in to LexisPSL or register for a free trial