The main changes introduced by the INCOTERMS 2020
The PKF TCL study analyzes the news and changes that will be made to the new version of INCOTERMS 2020
The new INCOTERMS 2020 clauses should come into force on 1 January 2020 by ICC (International Chamber of Commerce).
It should be briefly recalled that the INCOTERMS (acronym for International commercial terms) are the internationally used clauses in the trading of goods and provide an important guideline for worldwide imports and exports; furthermore, the use of different clauses in international trade/business can lead to the implementation of different tax regimes in both VAT and direct taxes field.
Regarding the changes introduced with the new version analyzed, it is noted that the overall plant will not be changed: in particular, the subdivision between the terms that can be used for each type of transport and those usable only in relation to maritime transport is not changed
Meanwhile the main rules remain unchanged:
The "F" group rules state that transport risks and expenses remain with the buyer from the moment of delivery of the goods to the carrier;
The rules of group "C" instead provide that the transport and the connected risk are in charge of the seller up to the place of destination of the goods;
The rules of group "D" remain connected to the obligations envisaged for the seller. Furthermore, it should be noted that in the new version the clauses that provide for the transport to be paid by the seller of the "D" group, this must no longer mandatorily be entrusted to a third carrier but it will be the seller himself who will be able to personally carry out the transport.
The most important changes therefore concern the FCA clauses, which provide for the transfer of risks to the buyer as soon as the goods are stowed on board the ship. The novelty consists in the possibility for the buyer to request the carrier to produce a copy of the bill of landing for the seller who will have to provide a copy to the buyer.
Moreover, it is being considered the creation of two subclasses of this clause, one for the land transport and one for that marine one, with the aim to favor of a greater adoption in goods’ transport containerised.
Further innovations will be introduced with reference to the “CIF” (Cost Insurance and Freight), in particular the “CIF” clauses may be used for the shipment of containers as was foreseen before the 2010 version.
Finally, there is a desire to reorganize the structure of the clauses in order to make more transparent the distribution of costs between the seller and the buyer in relation to the types of clauses adopted.
PKF Studio TCL - Genoa Milan