The Incoterms rules are rules that specify the obligations of the buyers and sellers that operate in the international trading system. These are the authorized rules to determine how costs and risks should be divided into parts. Incoterms rules are regularly included in contracts for the sale of goods worldwide and have become part of the everyday language of commerce. The International Chamber of Commerce (ICC) has introduced the Incoterms 2020 set, which contains rules for applying the commercial terms of 11 Incoterms. It incorporates the latest developments in commercial practice and updates the rules to make them more accessible and easy to use.
The new rules will take effect on January 1, 2020. As of this date, all sales contracts must include a reference to the Incoterms 2020 rules as the latest version of the Incoterms rules.