Businesses across the region are being warned of changes to a vital set of international trade rules which come into force at the start of the new year.
Incoterms – a collection of rules drawn up by the International Chamber of Commerce to govern trade around the world – have been revised for the first time in ten years, with the new rules taking effect from January 1.
Emma Truslove, a partner in FBC Manby Bowdler’s Corporate team in Redditch, said it was essential businesses were aware of the new rules when supplying any goods overseas.
“Incoterms are a really important set of rules which are fundamental to global trade, providing a set of contract terms for international freight delivery which clearly define the delivery point and the seller’s and buyer’s responsibilities, risks and costs,” she said.
“The International Chamber of Commerce states that Incoterms facilitate trillions of dollars in global trade each year and they are globally recognised and provide clarity and predictability to business.
“They have been updated for the first time in ten years to make them more accessible and easier to use and it is essential that companies are aware of the changes which are now in place.
“The new terms will not apply to existing contracts if those contracts make it clear that the Incoterms in place at the time they were drawn up are to apply, but we would urge businesses to review existing contracts for certainty and seek expert advice over new contracts to ensure the correct terms are applied.”
Emma can be contacted for expert help over Incoterms on the details below.