About 1,000 stakeholders in the shipping industry from Africa and beyond are expected to converge in Dakar, the capital of Senegal for the launch of the Incoterm Rules 2020, slated for (Thursday) October 24.
The new incoterms which is a revision of the 2010 version are international trade terms on contract of sale which provide certainty and clarity to businesses trading across borders everywhere in the world.
The new incoterms takes effect in January 2020.
The latest version, Incoterm 2020, which is to be launched on Thursday, October 24 in Dakar is the first time any of the versions developed by the International Chamber of Commerce (ICC) are to be released in Africa.
Already, delegates from Africa and across the world have started arriving as at Wednesday, October 23 (afternoon) ahead of the event. Among those who have arrived are representatives from the International Chamber of Commerce, Union of Africa Shippers Councils (UASC), Ports Management Association of West and Central Africa (PMAWCA), and Maritime Organisation of West and Central Africa (MOWCA).
Ghana is also solidly represented by a delegation from the Ghana Shippers’ Authority (GSA), which is headed by Mrs Agnes Asamoah Duku, the Shipper Services and Trade Facilitation Manager of the Authority.
Speaking to the Daily Graphic ahead of the launch on October 23 in Dakar, the Head of General Administrative Department of the Senegalese Shippers Council (COSEC), Mr Abdoulaye Sall, said all was set for the event to take off tomorrow.
According to him, the Senegalese Shippers Council as the host of the event have been part of the development of new incoterms and have used more than five months to prepare for the launch.
What does incoterms stand for?
It is an acronym standing for international commercial terms. Incoterm is a trademark of the International Chamber of Commerce, registered in several countries across the world
The incoterms rules feature abbreviations for terms, such as FOB (Free on Board), DAP (Delivered at Place) EXW (Ex Works), CIP (Carriage and Insurance Paid To), which all have very precise meanings for the sale of goods around the globe.
These terms hold universal meanings for buyers and sellers around the world.
Just as the 2010 version was made up of 11 acronyms, Mr Sall noted that the new version which was yet to be released was also made up of 11 acronyms with revisions in some of the acronyms.
Key trade elements
The remarks articulated in an interview with the paper was made when the Ghanaian delegation paid a courtesy call to the Head Office of the Senegalese Shippers Council in Dakar.
Mrs Duku who expressed her gratitude for the rousing reception by COSEC, indicated that the incoterms (trade terms) were key elements of international contracts of sale.
“They tell the parties involve in a business transaction what to do with regards to carriage of the goods from buyer to seller, and export & import clearance. They also explain the division of costs and risks between the parties.”
She indicated that with the information she had gathered the revisions in the new version would not be huge, but would focus on security.
“Even if you look at the previous versions, the 2000 and 2010 versions, for instance, the difference were that the number of acronyms were reduced from 13 to 11.
“Four of the acronyms (DAF, DES, DEQ, DDU) was also replaced by two new incoterms (DAT, DAP). The replaced incoterms DAF, DES and DEQ were often not used much in day to day trading by then and so, the revisions are often in line with modern trends,” she added.
The International Chamber of Commerce (ICC) will release new Incoterms Rules 2020, on October 24 in Dakar, Senegal to provide certainty and clarity to businesses trading across borders everywhere. The new incoterms will be effective as of January 1st, 2020.
Every 10 years, the International Chamber of Commerce evaluates and revises the International Commercial Terms, better known as incoterms, as a means of creating greater uniformity and effectiveness across the shipping industry. The current version, Incoterms 2010, will stay in effect until January 2020.\