7 November 2019 - The new Incoterms® 2020 have been published and will enter into force as of 1 January 2020. According to the new rules it will be possible to incorporate new provisions in a contract. We would like to inform you about the most important changes of Incoterms® 2010.
- DAT (Delivered at Terminal) is now DPU (Delivered at Place Unloaded). The meaning of the term remains the same. The place must be specified precisely, as many transport hubs often are very large.
- The level of required insurance in CIP (Carriage and Insurance Paid To) has altered. Since CIP is used for a different purpose (manufactured goods), the level of insurance has increased to a next level. Terminal Handling Charges (THC) are charges made by the terminal operator. These charges may or may not be included by the carrier in their freight rates – the buyer should enquire whether the CPT price includes THC, so as to avoid surprises. If necessary, different levels of coverage may be included in the commercial agreement.
- Improved allocation of costs to seller and buyer. For both parties the costs for which they are responsible have been clarified.
- The required transport security measures allocation of responsibilities for observing those measures.
- Implementation / clarification of the possibility of carrying out own transport (instead of transport carried out by a third party).
What can Mazars do to help you?
Incoterms are intended primarily to clearly communicate the tasks, costs and risks associated with the global or international transportation and delivery of goods. Mazars and Pellicaan would can help you with legal, VAT & customs questions in relation to Incoterms® 2010, transition to Incoterms® 2020 and can provide you with detailed explanation of the changes to the Incoterms 2020®.
Want to know more?
Do you have any questions about Incoterms 2020? Please feel free to contact Eline Polak of Mazars by e-mail or telephone: +31 (0)88 277 23 25 or Alexander den Hollander of Pellicaan by e-mail or telephone: +31 (0)88 277 16 15. They would be glad to further assist you with all Incoterms related matters.