They are predefinedinternational commercial terms of common acceptance by the parties involved (seller and buyer) which define the scope of the international contract detailing the obligations of each of the parties (risks, costs and procedures).
The International Chamber of Commerce is the global business organization that represents the voice of business in every sector and every country in the world. Founded in 1919 grouping companies, chambers of commerce and associations. They created the "INCOTERMS" (international commercial terms) were created in 1936 and are reviewed by the drafting committee from time to time to adapt it to current business practices 1953, 1980, 1990, 2000 and 2010.
The new 2020 incortems are already being reviewed and drafted, this committee is made up of senior European advisors from different chambers of commerce and government, for this new version are incorporated for the first time China and Australia adding a total of 150 members, expected to be presented for the last quarter of 2019, entering into force on January 1, 2020.
Some of the possible modifications:
- Elimination of EXW and DDP : the argument is that these operations are domestic and are contrary to the new European Customs Code.
- Elimination of FAS: It is mostly used for commodity products and does not contribute anything to the FCA.
- Open the DDP in two: We think of two new terms DTP (delivery at terminal paid) refers to the delivery of the goods in port or airport destination, distribution center or other agreed but the buyer assumes the payment of customs duties. The other serious DPP (delivery at place paid) refers to the delivery of the goods in a place other than the transport terminal and it is the seller who assumes the payment of customs duties.
- A new term CNI (cost and insurance) includes insurance on the buyer's side and not including freight which means that the risk at port of departure is on the buyer.
Sources: ICC page, Maitsa page, analdex exponotas magazine.
