On 10 September 2019, the International Chamber of Commerce (the
"ICC") released Incoterms 2020, the ninth version of the
Incoterm Rules on domestic and international trade, which will
enter into effect on 1 January 2020. This article highlights the
main changes made by the ICC and aims to provide practical advice
to sellers and buyers wishing to incorporate the new terms into
their sale and purchase agreements.
1. Overview of Incoterms 2020
a. Purpose and scope
Incoterms 2020's purpose remains to facilitate the conduct
of global trade by providing a standard set of terms that clearly
define the obligations of the seller and the buyer. The ICC's
stated aim is to increase the parties' understanding of their
respective positions thereby reducing the potential for disputes,
whilst accommodating current industry concerns.
