Incoterms 2010 vs 2020: What Changed
Changes include DAT becoming DPU, broader default CIP insurance, an optional FCA on-board bill of lading arrangement, express own-transport provisions and clearer presentation of security duties and costs. For new contracts, specify the rule, precise named place and Incoterms 2020. Existing contracts using 2010 do not automatically change.
Incoterms 2010 vs 2020: the changes buyers need to check
Check how the changes affect delivery, insurance, documents and quoted costs. The table summarises ICC's comparison.
Use the Incoterms overview for the basics and the responsibility chart when comparing individual rules.
| Topic | 2010 position | 2020 position | Buyer action |
|---|---|---|---|
| DAT becomes DPU | DAT described delivery unloaded at a terminal, with terminal already broadly defined. | DPU makes clear that the destination can be any suitable place. Seller unloading remains essential. | Name the unloading point and confirm access and equipment. |
| CIP insurance | Default minimum cover followed Institute Cargo Clauses (C) or similar clauses. | Default cover rises to Institute Cargo Clauses (A) or similar clauses; parties can agree a lower level. | Check the policy and any agreed departure from the default. |
| FCA shipping document | No equivalent express option for obtaining an on-board bill of lading. | Parties can agree that the buyer instructs its carrier to issue one to the seller after loading. | Coordinate the arrangement with the carrier and bank. |
| Own transport | Drafting assumed carriage by an engaged third-party carrier. | FCA, DAP, DPU and DDP expressly accommodate arranging carriage using own transport. | Identify who moves the goods and how handover is recorded. |
| Security obligations and costs | Security obligations were present but less prominent. | Responsibilities are clearer in A4 and A7; related costs appear in A9/B9. | Check which party handles and pays for relevant security requirements. |
| Cost presentation | Allocated costs appeared across different articles. | A9/B9 consolidates costs, while relevant articles retain their cost provisions. | Use the consolidated list to check quote inclusions. |
| Explanatory notes | Each rule began with guidance notes. | Expanded explanatory notes help explain selection, risk and cost allocation. | Read the notes alongside the full chosen rule. |
DAT to DPU: unloading still matters
Seller unloading was already required under DAT. Its broadly defined terminal was not restricted to a seaport.
Before replacing DAT with DPU, confirm the seller can unload at the named destination. Compare the DPU guide with the DAP guide.
CIP insurance increased; CIF did not follow
CIF retains Institute Cargo Clauses (C) as its default minimum cover; higher cover can be agreed. CIP's broader default under Clauses (A) still has exclusions.
Request the insurance documents and check the actual cover. See the CIP guide and CIF guide.
FCA: the new document option does not postpone delivery
For FCA goods carried by sea, the optional arrangement helps meet documentary requirements, including under letters of credit. FCA delivery occurs before vessel loading; obtaining an on-board bill of lading does not postpone risk transfer.
If agreed, the buyer instructs its carrier to issue the bill to the seller after loading, and the seller then presents it to the buyer. Confirm carrier support and payment requirements. Read the FCA guide.
Which edition should your contract name?
ICC Academy recommends referring to the most recent revision. Specify the rule, precise named port, place or point, and edition. For example: FCA [agreed collection address and point], Incoterms 2020.
A contract expressly incorporating Incoterms 2010 continues to use that edition unless the parties agree a change. Align the order, quotation and delivery instructions.
Separately agree product specifications, payment, ownership transfer and remedies for breach. Incoterms do not determine these matters.
Destination taxes: a short UK example
Under HMRC's transaction-value method, include relevant transport, insurance, loading and handling costs to the UK border unless already included in the price. These are not the only possible valuation adjustments.
For import VAT, start with customs value and include applicable Customs Duty, levies, excise duty and other import charges, excluding VAT itself. Include relevant incidental expenses to the first UK destination and transport-related expenses to a further UK destination known at importation, without double counting.
For an EU or US destination, consult that market's customs and tax guidance separately.
Working out your own order? Send us the product on WhatsApp and we reply the same working day: WhatsApp us
Before accepting a China supplier's revised quote
Compare the edition, named point, insurance, unloading, documents and excluded charges.
Use your own cost inputs when comparing quotations with the price converter.
Sources
The ICC sources below support the edition comparison and contract guidance. The HMRC sources support the UK valuation example.
Frequently asked questions
Can I still buy under Incoterms 2010?
Yes. ICC Academy explains that the edition incorporated into the contract applies. Name it explicitly and agree any change with the supplier.
Should I replace DAT with DAP on an old order template?
Do not treat them as equivalents. DPU is the renamed DAT rule; DAP does not require the seller to unload.
Does CIP 2020 insure absolutely everything?
No. The broader default cover still has exclusions. Check the actual policy and whether the parties agreed a different level.
Did CIF insurance also increase in 2020?
No. Its default minimum remains Institute Cargo Clauses (C), although higher cover can be agreed.
Will FCA automatically give my supplier an on-board bill of lading?
No. The option requires agreement and a buyer instruction to the carrier. Confirm that the carrier can issue the required document.
My supplier wrote only FOB. Is that enough?
Request the named port of shipment and Incoterms edition, and confirm the rule suits the shipment.
Does changing to 2020 mean my quoted price must rise?
The edition change does not itself set a new price. Ask the supplier to explain any changed insurance or service costs before agreeing a revised quotation.
Sources
- ICC: Incoterms 2020 key changes
- ICC Digital Library: differences between Incoterms 2010 and 2020
- ICC Academy: Incoterms 2020 vs 2010 and choosing the contract edition
- ICC: release summary, including own transport and explanatory notes
- ICC Digital Library: introduction and incorporating the rules into a contract
- HMRC: valuing imported goods using the transaction-value method
- HMRC: working out import VAT value using customs value