Incoterms 2020 officially came into effect on January 1, 2020
Incoterms 2020 still has 11 conditions: EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DAP, DPU, DDP
- Replace the DAP rule with the new DPU rule. The DPU is the only rule that requires the seller to unload the goods from the vehicle to the place of delivery. The reason for this change is because the ICC finds that sometimes the two sides have a need to deliver goods at a point farther away than the Terminal at the ports.
- Increase the CIP rule's mandatory coverage to Category A, which has the highest coverage, instead of Category C, which is the minimum in 2010.
- In FCA, the buyer authorizes the designated carrier to receive the goods to issue an On-board Bill of Lading for the seller to facilitate payment by L/C.
