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Simplifying Incoterms 2020

International commercial terms (incoterms), are the guidelines for global trade around the world. To provide clarity in the contractual flow, we must understand the incoterms that are being used in the contract between the buyer and the seller for each transaction. Correctly understood incoterms ensure a smoother and effective process. The most recent edition was presented by the International Chamber of Commerce, Incoterms 2020. This is the ninth version of incoterms since they were first introduced in 1936. One major change is Delivered At Place (DAP, 2010) was renamed Delivered at Place Unloaded (DPU, 2020). DAP was renamed to DPU to make it distinctly usable for any place of destination, not just a terminal, making the delivery location less attractive. If the delivery place is not a terminal, the seller is responsible for guaranteeing that the delivery location can unload the cargo. Therefore, the DPU incoterms has moved down on the incoterms list as it presents a higher-level responsibility for the seller. Incoterms from previous editions can still be used, making it critical to format the incoterms correctly with the edition. These terms hold universal meaning for both buyers and sellers, as well as representing the relationship between them.

Contributor: Stephanie West 


About Allyn International 

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.

 

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