This is one of important tips related to an international trade, thus I'm sharing with you just in case.
If your business is involved in an international trade like exporting or importing, it might be better to check it with an official website of your government as well, just in case.
As you might know, ICC ( stands for International Chamber of Commerce ) announced on 10th September that the new revised Incoterms 2020 starts as of 1st January 2020.
Of course all trading companies already know what Incoterms is, but if you were considering to import a machine or an equipment from overseas, you should care about this matter as well with your forwarder.
Compared to the conventional Incoterms 2010,
the revised Incoterms has 11 kinds of the trade conditions as follows,
< All-freight >
#1 : EXW ( Ex Works )
#2 : FCA ( Free Carrier )
#3 : CPT ( Carriage Paid to )
#4 : CIP ( Carriage and insurance Paid to )
#5 : DAP ( Delivered at Palce )
#6 : DPU ( Delivered at Place Unloaded )
#7 : DDP ( Delivered Duty Paid )
< Sea-freight mainly >
#8 : FAS ( Free Alongside Ship )
#9 : FOB ( Free on Board )
#10: CFR( Cost and Freight )
#11: CIF ( Cost, Insurance and Freight )
On the revised new term, DPU is added instead of DAT.
It means that the seller or shipper burdens the all risks related to shipping the cargo to the destination and to unloading it too.
The burden of unloading is different from DAT.
I'm supposed that this change won't affect your trade business maybe, because it's said that roughly 40% international trades are conducted on FCA.
Also, lot of dealers often choose FOB or CFR ( CIF ) .
However, strictly speaking, FOB and CIF are not covered the cases of " container transport ", even though container transport accounts for around 80% of international trades.
( Actually FOB covers the case of " conventional ship ".
That's why, if terrible disaster happed and your cargo received the damage, when the cargo stayed at the port ( a ware house ), the insurance would not applied in many cases unfortunately.
Even though the FOB and CIF has like that risks, lot of importers hope to apply for them, thus the trade terms is kept on Incoterms 2020 as well.
In reality, if you ( shipper ) are concerned about this matter, it might be better to check your conventional insurance service.
Currently there are some insurance services which are covering some disasters.
If your business is related to printing, newspaper, advertising, logistics, delivery, courier, distribution, or wrapping, you are the most welcome to our website as well.
We are a Japanese manufacturer which was built over 60 years ago.
< Website >
Refer to Pressio website
If you are interested, please feel free to ask us via our website or WhatsApp as follows,
< Contact Us >
< WhatsApp >
+81 1558 9116
I look forward to receiving a lot of inquires from you, our future business partners and customers.
Have a beautiful day again today you all too.
For the better future of printing, logistics, newspaper, wrapping, DM, advertising and other industries.
Kenta Kanamori from Pressio
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