Port Wings News Network:
The Madras Chamber of Commerce & Industry (MCCI) held a familiarisation programme on the new INCO terms 2020 announced by the International Chamber of Commerce on 12 December 2019 in Chennai.
The programme was inaugurated by Shri. D K Sekar, Additional Director General of the Directorate General Foreign Trade (DGFT).
Speaking at the inaugural Shri. Sekar highlighted the importance of proper understanding of the contractual terms and obligations where language/cultural divides often lead to erroneous interpretations resulting in commercial disputes.
He also underlined the standardisation sought to be achieved by adopting the INCO terms so that misunderstandings are side stepped and unhindered trade is facilitated.
Mr. J. Krishnan, Member of MCCI (and Partner, S Natesa Iyer & Co.), was the resource person who explained in details the various changes in the INCO Terms 2020.
ICC has launched Incoterms® 2020, the newest edition of the renowned trade terms for the delivery of goods, providing certainty and clarity to business and traders everywhere.
The Incoterms® rules were first introduced by ICC in 1936 to establish commonly accepted definitions and rules related to the delivery of goods between trading partners worldwide. Since then, ICC has periodically revised the Incoterms® rules to reflect changes in the international trade system. The 2020 edition launches during the organisation’s Centenary year.
More accessible and easier to use, Incoterms® 2020 includes more detailed explanatory notes with enhanced graphics to illustrate the responsibilities of importers and exporters for each Incoterms® rule. The introduction to Incoterms® 2020 also includes a more detailed explanation on how to choose the most appropriate Incoterms® rule for a given transaction, or how a sales contract interacts with ancillary contracts.
- Incoterms® 2020 provides for demonstrated market need in relation to bills of lading (BL) with an on-board notation and the Free Carrier (FCA) Incoterms® rule.
- Incoterms® 2020 aligns different levels of insurance coverage in Cost Insurance and Freight (CIF) and Carriage and Insurance Paid To (CIP).
- Incoterms® 2020 includes arrangements for carriage with own means of transport in FCA, Delivered at Place (DAP), Delivered at Place Unloaded (DPU), and Delivered Duty Paid (DDP).
- There is a change in the three-letter name for Delivered at Terminal (DAT) to DPU.
- Incoterms® 2020 includes security-related requirements within carriage obligations and costs.