Buyer & Seller Responsibilities under Incoterms 2020
At Baku GLS, we are happy to accommodate Incoterms 2020 for our clients. We’ve created a quick reference to buyer’s and seller’s responsibilities under Incoterms 2020, which you’re welcome to print out and keep. take a look at the infographic below or download the PDF.
If you have any questions on how Incoterms affect your shipment with us, give us a call on +353 53 91 61786.
There are two key changes in Incoterms 2020 compared to the 2010 edition:
- DAT (Delivered at Terminal) is renamed Delivered at Place Unloaded (DPU)
- FCA (Free Carrier) now allows for Bills of Lading to be issued after loading
Other changes include:
- CIF (Cost, Insurance and Freight) and CIP (Carriage and Insurance Paid To) set out new standard insurance arrangements, but the level of insurance continues to be negotiable between buyer and seller.
- Where listed, cost allocation between buyer and seller is stated more precisely – one article lists all costs the seller and the buyer are responsible for.
- FCA (Free Carrier), DAP (Delivered at Place), DPU (Delivered at Place Unloaded) and DDP (Delivered Duty Paid) now take account of buyer and seller arranging their own transport rather than using a third party.
- Security-related obligations are now more prominent.
- “Explanatory Notes for Users” for each Incoterm have replaced the 2010 edition’s Guidance Notes, and are designed to be easier for users.
- CIP now requires as default insurance coverage ICC A or equivalent. It was ICC C under Incoterms 2010. Required insurance coverage under CIF remains.
For more details, please refer to the ICC official website: https://iccwbo.org.