INCOTERMS® 2020 were developed and set by the International Chamber of Commerce (ICC) in Paris – and they are revised regulary. They serve sellers and buyers to determine the transfer of risk and cost as well as certain obligations in their purchase agreement.
The new INCOTERMS® and thus, the new contract terms, are effective since 1st January 2020. They are adapted to the ever-changing trade and transport conditions dictated by political or economic conditions. The last version is from the year 2010. It is important that purchase agreements make a clear reference to a version of the INCOTERMS®, as previous versions will continue to be valid and can still be used.