A Comparative Analysis of Incoterms 2020 and 2010

Abstract

The purpose of this study is to describe the innovations brought by the new guide to Incoterms 2020 which came into force on January 1, 2020. To this end, the rules of delivery method of Incoterms 2020 have been compared to the previous version of Incoterms 2010. In general, it would seem that the international chamber of commerce, which defines the standard international trade rules and which determine the mutual rights and obligations of buyers and sellers with the aim of minimizing any disputes between the parties, an effort to simplify and harmonize the rights and duties of the parties and therefore of the terms of international trade. Among the eleven modes of delivery of the Incoterms described in the Incoterms 2020 manual, it should be noted that the respective parties who have chosen to set up the Incoterms FCA, DAP, DPU and DDP are authorized to transport goods with their own means of transport. In addition, it can be seen that the DAT delivery form has been deleted and that the DPU delivery form has been introduced. In addition, we see that the terms CIF and CIP have seen their levels of insurance coverage change. In terms of clarifying the rules and Incoterms to choose this new guide marks a positive development. However, it is observed that the VGM problem has not yet been clarified.