NEWSLETTER-2019-metin

Revision to International Commercial Terms: Incoterms® 2020* Prof. Dr. H. Ercument Erdem Introduction INCOTERMS are a set of rules introduced by the International Chamber of Commerce (ICC ) to explain the commercial terms that are widely used in international trade. The purpose of the Incoterms rules is to contribute to and facilitate the safe and swift conduct of interna- tional trade. A reference to Incoterms by the parties in a sales contract will minimize the possibility of conflicts in the parties’ interpretation of delivery terms through clearly identifying the parties’ reciprocal rights and obligations. The Incoterms were first created by the ICC in 1936, and have been developed and renewed many times since that time. Due to the continuous developments in global trade following the introduction of the Incoterms® 2010, the ICC felt the need to revise the Incoterms again, and launched the Incoterms® 2020 on 10 September 2019, with effect from 1 January 2020. Scope of Incoterms The Incoterms regulates certain aspects of contracts of sale and, in particular, the parties’ rights and obligations in terms of delivery of the goods, transfer of risk and allocation of costs, as well as insurance and documentation requirements in 11 trade terms, each consisting of a set of ten articles, numbered A1/B1 to A10/B10. It must be emphasized that the Incoterms rules are not in them- selves contracts of sale or their substitutes; therefore, all aspects of a contract of sale are not regulated. The following subjects are not covered by the Incoterms : (i) whether a contract of sale exists; (ii) * Article of September 2019