The New Incoterms® 2020 – Selecting the Right Terms for Your International Sales Transactions

Does your company fully understand the “terms of sale” it currently uses in purchase and sales transactions—that is, does it have a firm grasp on all of its rights and obligations under these contracts with regard to the shipping or transportation of goods? The Incoterms® are the internationally accepted set of rules, published by the International Chamber of Commerce (ICC),  that define the specific responsibilities of sellers and buyers for the delivery of goods under international sales contracts. In September 2019, the ICC released the newest version of the rules (Incoterms® 2020) that took effect on January 1, 2020.  

These rules, when used correctly, greatly reduce misunderstandings amongst buyers and sellers as well as reduce the risk of contract disputes and litigation. Certain terms will identify the party responsible for transportation, insurance, loading and unloading of cargo, and customs clearance. In addition, the terms identify the point at which title to the goods and risk of loss will transfer from the seller to the buyer, and the rights and responsibilities of the parties if goods are lost or damaged. It is critical for companies to choose the right terms of sale for their transactions. Unfortunately, companies often choose unwisely, which can lead to significant delivery delays and increased costs. In this webinar, international trade attorney Melissa Proctor of Miller Proctor Law PLLC will discuss the new rules.