Since 1919, when the International Chamber of Commerce (ICC) was founded in Paris, they have strived to provide merchants around the world with standardized delivery and trading terms. Initially, comparative studies were conducted (in 1923 and 1928). However, since 1936, the ICC has moved on to developing its own rules based on these studies – the Incoterms.
Changes to Incoterms
Since 1936, the rules have been revised repeatedly, namely in 1953, 1967, 1974, 1980 and every ten years since then. These revisions have taken into account technical advances such as the expansion of rail transport, the increase in air freight, and container deliveries.
Incoterms do not lose their validity – even today, transactions could be conducted using Incoterms® 1990 (e.g. due to old framework agreements that are still valid) if the parties involved (seller, buyer and, where applicable, carrier) agree to this. However, this must be specified in the contract.
Structure
The Incoterms specification should be structured as follows:
Term, location, version; e.g.:
FCA, Sigmaringer Straße 109, 70567 Stuttgart, Incoterms 2020
The location should be specified as precisely as possible (as precisely as is economically reasonable).
Current Incoterms® 2020
The current Incoterms came into force on 1 January 2020. There are now (still) eleven Incoterms – seven apply to all modes of transport and four to sea and inland waterway transport. Further details can be found in the following glossary articles:
Clauses for all modes of transport
- EXW - Ex Works
- FCA - Free Carrier
- CPT - Carriage Paid To
- CIP - Carriage and Insurance Paid to
- DAP - Delivered At Place
- DPU - Delivered at Place Unloaded
- DDP - Delivered Duty Paid