The Incoterms® 2020 rules continue to serve as an important framework, offering clarity and consistency in international trade transactions. However, as trade evolves, the laws and regulations of particular countries can sometimes present unexpected barriers, impacting the practical use of specific Incoterms® rules.
How do regulatory hurdles affect the Incoterms® 2020 rules?
This document addresses the national regulatory hurdles traders may encounter when implementing Incoterms® 2020 rules. For example, local mandates on transport insurance providers, or import clearance restrictions tied to local entities, can complicate the use of rules like CIP, CIF, or DDP. Country-specific limitations affecting EXW and DDP highlight how regulatory nuances can lead to unforeseen obligations for buyers and sellers alike.
With the help of its global network of over 90 national committees, the International Chamber of Commerce (ICC) provides information about such barriers to the use of the Incoterms® 2020 rules. It is not exhaustive, and we would welcome any additional contributions or refinements from readers, which may be sent to Emily O’Connor, Director of Commercial Law and Practice, ICC, at emily.oconnor@iccwbo.org for periodic incorporation into this living document.
