WHAT IS INCOTERMS?
The international commercial terms, or Incoterms, is a universally recognised set of rules on trading globally. The Incoterms 2020 was created to provide specific instructions and guidance on the risks and responsibilities of all parties involved, effectively preventing unnecessary disputes or costs during the process.
MAKING INCOTERMS SIMPLE
Selecting the right Incoterm and understanding the pros or cons of each one can be a tricky process, especially when you are just starting out. DHL Express’s global network allows your shipment to be handled solely by our international specialists – a true one-stop solution for importing and exporting, door to door. By providing a comprehensive logistic service, we managed to narrow down your selection of Incoterms, from 11 to just 2. You can select this option when creating your waybill.
Delivered Duty Paid (DDP)
Commonly referred to as Duties and Taxes Paid (DTP) at DHL Express. Selecting this option indicates that the shipper or account holder incurs the full costs of the shipment, including any duties or taxes that might be incurred from customs.
Delivered at Place (DAP)
Commonly referred to as Duties and Taxes Unpaid (DTU) at DHL Express. Selecting this option indicates that the shipper or account holder will incur the full cost of transportation until it reaches their intended recipient. However, all duties and taxes incurred at the destination country will be borne by the consignee or billing agency that was assigned by the shipper as indicated in the shipping invoice.
INCOTERMS 2020 TABLE
Some changes from the Incoterms 2010 edition are:
- Delivered at Place Unloaded (DPU) has replaced Delivered at Terminal (DAT)
- Free Carrier (FCA) now allows for Bills of Lading to be issued after loading
- Cost, Insurance and Freight (CIF) and Carriage Paid To (CPT) set out new standard insurance arrangements, negotiable between buyer and seller
- Free Carrier (FCA), Delivered at Place (DAP), Delivered at Place Unloaded (DPU) and Delivered Duty Paid (DDP) now take into account of buyer or seller arranging their own transport rather than a third party
Read on the changes in detail, visit the official International Chamber of Commerce’s website.