Understanding the news of Incoterms 2020 is essential for those who work with foreign trade. On April 27th, 2023, CET LOGISTICS presented a lecture to one of its clients on the main changes in this system of commercial terms.
Speaker: Alex Antunes, Chief Executive Officer.
One of the main changes was regarding the acronyms, which had their meanings updated to make it clearer who is responsible for each stage of the process of transporting goods. However, the quantity remained the same, with a total of 11 terms defined worldwide since September 2019. The new rules came into effect on January 1st, 2020.
The current terms that make up the Incoterms are as follows:
[EXW] Ex Works Named place of delivery.
[FCA] Free Carrier. Named place of delivery.
[FAS] Free Alongside Ship. Named port of shipment.
[FOB] Free On Board. Named port of shipment.
[CPT] Carriage Paid To. Named place of destination.
[CIP] Carriage And Insurance Paid To. Named place of destination.
[CFR] Cost And Freight. Named port of destination.
[CIF] Cost Insurance And Freight. Named port of destination.
[DAP] Delivered At Place. Named place of destination.
[DPU] Delivered At Place Unloaded. Named place of destination.
[DDP] Delivered Duty Paid. Named place of destination.
The new rules emphasize safety and list import and export requirements, helping to distinguish the responsibility of the buyer and seller in meeting each of these requirements, avoiding problems during the transportation process.
Understanding Incoterms 2020 is essential to ensure the success of foreign trade operations. CET LOGISTICS is always up to date on these changes and ready to help its clients understand and apply the terms correctly. Contact us to learn more.
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