International trade: Incoterms® 2020 rules will be published in September 2019

The International Chamber of Commerce (ICC) created the first rules incoterms® in 1936 to facilitate international trade: it developed a kind of common language of international trade among all countries.

Since then, the rules have been updated on average every 10 years to adapt tochanges in global business practices.

The incoterms® 2010, version effective January 1, 2011are being reviewed by ICC and international trade professionals.

The content of the new version will be announced on September 1, 2019, and the rules will apply on January 1, 2020.

Based on the lack of official information disclosed at this stage by the CCI, the main purpose of this new version is to:

• Facilitate understanding and therefore use of incoterms® rules including use tips, graphics, etc. ;
• Make use of the rules by more operators worldwide;
• Making it possible to distribute incoterms® electronically ;
• Clarify the link between incoterms® and customs formalities;
• Go towards securing the international supply chain.

As regards the actual rules:

• L‘incoterm® EXW (departure factory / Ex-works) will always be there but reserved for national transport.
• Lincoterm® FCA will evolve to facilitate its use in maritime transport and vis-à-vis the tax administration.
• The seller's obligations with regard to subscription of transport insurance will evolve for incoterms® CIP and CIF.
• No information at this stage on the possible disappearance ofincoterm® DDP.