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Incoterms 2020: The Seven New Rules

7 Agustus 2020   20:31 Diperbarui: 7 Agustus 2020   20:45 240
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International Commercial Terms are known as "Incoterms". Since 1980, it has been developing over the decades. The latest development from the International Chamber of Commerce (ICC) is declaring 2020 as a replacement for Incoterms 2010. Based on the data from Pusdiklat Bea Cukai, what has changed in Incoterms 2020?

Let's check it out!

Definition of terms

Definitions and introductory points for each term are clarified, this is very helpful for business actors (exporter/importer) in determining or choosing the right terms.

Addition of the FCA Clause

Incoterms 2020, especially the Free Carrier (FCA) term, provides an option that the buyer can ask the seller for instructions on providing documents related to the Bill of Lading (B / L) for the payment system process to the bank.

Cost Sharing 

The division of costs between exporter and importer is clarified and collected in points A9 or B9 of the respective terms. This clause as a one-stop-shop to finds all costs under given incoterms.

CIF Term Insurance Level

There is a change in the principle of insurance level at the CIF term. Previously, required sellers used the minimum insurance level or level (C), but among the newest change in Incoterms 2020 requires sellers to use the maximum insurance level or Institute Cargo Clause (A).

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