Energy & Infrastructure Projects partner Robert A. James has produced the second edition of his Inkling chart with explanations to guide both veterans and newcomers. An Inkling of Incoterms® 2020 tracks the clauses of the official INCOTERMS publication, and summarizes the parts of each clause that are different from term to term. The goal is to equip contract drafters and users with information on how to select, interpret and apply the terms in practice, even if logistics experts must master many additional details.
Pillsbury's International Trade team (including Meghan C. Hammond and Aaron R. Hutman) also advises clients on a broad variety of commercial and regulatory issues for cross-border transactions. Please reach out to Rob, Meghan or Aaron, or your regular Pillsbury contact, for more information.
Three little letters can make a big difference. No, we are referring not to IOU or even XOX, but to acronyms like FOB, CIF and FCA.
The International Chamber of Commerce (ICC) has released the new decade's version of INCOTERMS®, the recommended standardized terms of delivery and performance for sales of goods particularly in international markets.
INCOTERMS® 2020 supersedes the 2010 version, though contracts have been known to incorporate even older versions—and to use terms that have been long abandoned (like DAF, DES, DEQ, and DDY).
Buyers and sellers routinely adopt INCOTERMS in their contracts. New users of the forms may wonder what risks and costs are being assumed or transferred by those references.
The INCOTERMS book provides the answer, but it is not easy reading. In part, that is because most of the clauses for each trade term are exactly the same, and the differences between clauses are often subtle.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.