IncoTerms 2020 will be published by the ICC to come into effect on the 1st of January 2020.
IncoTerms 2020 are the new International Trading terms that are set to be published by the International Chamber of Commerce (ICC). The new ICC IncoTerms 2020 will be released on September 2019 and legally come into effect on the 1st of January in 2020. The ICC originally published IncoTerms in 1936 and have continually updated them to reflect the changes to the Global Trade environment. It’s important that all parties involved in Global Trade clearly understand the changes and how they apply supply chains. The new IncoTerms 2020 will be published by the ICC here.
What are IncoTerms?
IncoTerms are globally recognized terms of global trade. When buying and selling products Internationally companies abide by set IncoTerms to clearly define when costs and risks are legally transferred from the seller to the buyer. ICC updated IncoTerms rules in 2010 which are still in effect today. These include the 11 published IncoTerms EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAT, DAP and DDP. Read more about IncoTerms 2010 here.
What changes will be made to IncoTerms 2020?
As IncoTerms 2020 have not yet been published, the global trading community can only speculate about what changes will actually take place. Speculation throughout the industry includes:
- Changes to EXW Ex-Works ?
- Changes to FOB and CIF ?
- A new IncoTerm CNI ?
- Updates to FCA ?
- Updates to consider new cyber security threats and the new world of digital supply chains ?
IncoTerms 2020 prepares for a new digital world
Since IncoTerms were last updated in 2010, the business world has changed dramatically thanks to advancements in new software and technology. Manual procedures that were common place over 10 years ago are continually being replaced by new digital supply chains.
Businesses all over the world have adopted new digital processes covering warehouse management, purchasing, International payments, shipping, tracking and security to name a few. Because companies are becoming more reliant on a digital process, cyber security threats can pose an increased risk to supply chain partners. The ICC may include an IncoTerm or information included in some IncoTerms to address such risks.
The development of new blockchain processes, self executing smart contracts and cryptocurrency payments are innovative new technologies that are pushing global trade into a new era. Smart IncoTerms or SmartINCOs will help to improve trade facilitation into this new era of global trade.
The ICC will also be publishing IncoTerms 2020 as a mobile app available on both Android and IoS. Stay tuned for IncoTerms 2020 PDF charts are they are published.