INCOTERMS were created by the International Chamber of Commerce (ICC) in 1936 and since then have been regularly updated to accomodate changes in trading preactices.
The ICC amended INCOTERMS in 2020, putting in place a more modern set of rules that take into account changes in transportation, security, electronic communications and the spread of customs-free zones.
Without INCOTERMS, buying and selling, both doemstically and internationally, would be extremely difficult, as they define important responsibilities between buyers and sellers for the delivery of goods under sales contracts.
It is therefore extremely important that exporters and importers ensure that they are trading in a favourable INCOTERM and that INCOTERMS 2020 are being used. If you are not already familiar with the new rules, then you can obtain a copy of the ICC's publication INCOTERMS 2020 from www.iccwbo.org.
Incorrect use of an INCOTERM, such as Ex Works (EXW) or Delivery Duty Paid (DDP) can cause legal issues over customs requirements, freight agents responsibilites and documentary requirements, especially as now the UK is no longer in the EU.
For further information on this subject, please contact our Team of Experts at - firstname.lastname@example.org