ICC Rules for the use of domestic and international trade terms: INCOTERMS 2020

Abstract

The use of trade terms in sales contracts, especially international sales contracts, is customary and very common since it contributes to the acceleration of business transactions, concurrently increasing their certainty and predictability. The ICC Rules for the use of domestic and international trade terms -INCOTERMS 2020 have been in effective use since 1 January 2020. Their goal is to enable the development of global trade in an easier, more effective and safer manner. In this paper, the author analyses the development, importance and legal nature of INCOTERMS, with special reference to its current 2020 revision and particular focus on the seller's obligation to deliver the goods and risk transfer from the seller to the buyer.