INCOTERMS® 2020 Changes Rules for Buyers, Sellers and Shippers of Goods in International Trade
Title: INCOTERMS® 2020 Changes Rules for Buyers, Sellers and Shippers of Goods in International Trade
Jurisdiction: USA / International commercial transactions
Author: Barry J. Bendes
Law firm: Locke Lord LLP
The International Chamber of Commerce has issued INCOTERMS® 2020 (short for International Commercial Terms) to be effective January 1, 2020. INCOTERMS 2020 provides an updated template and standardized set of definitions for the terms most commonly used in international commercial transactions (and some that are less common but are used for specific purposes).
By specifically designating INCOTERMS 2020 in an agreement prior to January 1, 2020, buyers, sellers, shippers and others can use INCOTERMS 2020 today even though the official effective date is not until January 1, 2020. References in agreements, purchase orders, confirmations, letters of credit and other contracts to INCOTERMS after January 1, 2020, without a designation as to an INCOTERMS version will likely result in the application of INCOTERMS 2020.