ICC Launches Incoterms® 2020
For the past six years, I have had the honor of serving as the United States representative on the International Chamber of Commerce (ICC) World Chamber Federation General Council. ICC was founded in the aftermath of World War I when no world system of rules governed trade, investment, finance or commercial relations. It is now the world’s largest business organization, representing more than 45 million companies in more than 100 countries. ICC’s core mission is to make business work for everyone, every day, everywhere.
Since its founding in 1919, ICC has been committed to the facilitation of international trade. Different practices and legal interpretations between traders around the world necessitated a common set of rules and guidelines. As a response, ICC published the first Incoterms® rules in 1936, and has been maintaining and developing them ever since.
Incoterms® is an acronym standing for international commercial terms. The rules feature abbreviations for terms, like FOB (“Free on Board”), DAP (“Delivered at Place”) EXW (“Ex Works”), CIP (“Carriage and Insurance Paid To”), which all have very precise meanings for the sale of goods around the world.
The Incoterms® rules are the world’s essential terms of trade for the sale of goods. Whether you are filing a purchase order, packaging and labelling a shipment for freight transport or preparing a certificate of origin at a port, the rules are there to guide you. Incoterms® provide specific guidance to individuals participating in the import and export of global trade on a daily basis. These rules facilitate trillions of dollars in global trade each year.
Updated Regulations for 2020
As it celebrates its 100th anniversary in 2019, ICC recently published Incoterms® 2020 to help prepare business for the next century of global trade. Incoterms® 2020 is available on ICC’s new e-commerce platform ICC Knowledge 2 Go in both print and digital formats and is available in no fewer than 29 languages.
For the first time, ICC also launched a mobile application to promote wider usage of the trade terms. The app brings together essential news, information and insight regarding the Incoterms® rules in one, easy-to-access location. The Incoterms® app is available free of charge for iOS and Android users.
Through our Global DSM Trade and Investment Strategy, the Greater Des Moines Partnership remains committed to helping our companies identify new international markets and increase exports. If you are engaged with international trade and need additional guidance on Incoterms® 2020 or other trade related issues, please contact Ryan Carroll at The Partnership at mailto:rcarroll@DSMpartnership.com or (515) 286-4998.
The Greater Des Moines Partnership is the economic and community development organization for more than 6,600 Regional Business Members and 360+ Investors. The Partnership is a champion of the DSM USA message of Greater Des Moines (DSM) as a welcoming, diverse and vibrant community. Learn more about The Partnership’s vision of one voice, one mission as one region.