FTNX TRADE NEWS
Personal opinion of the author served without prejudice E&0.E
Advice for all PCT’s World-wide.
INCOTERMS 2020 2020年的新交付规则
Comes into effect: Jan 1, 2020
What’s new? (Subject to final draft coming online; this article may be update )
Posted: 27 Sept 2019: Subject to further clarification in 2020
ICC INCOTERMS 2020 is due for release in January 2020. We don’t see anything minor let alone major in such changes that the PCT will need to address. FTNX defines all end buyers, suppliers, exporters, importers, sellers, buyers and all private informed traders as PCT (Professional Commodity Traders.) This aspect make it much easier for FTNX to ‘generalise’ the advice provided in this website, as all informed PCT should be using or ought to be using a uniform long tested aspects of trade to do with payment and delivery. A general insight is given about the new Incoterms 2020 below, subject to change, as the last time Incoterms 2010 was due a lot of ‘fake’ information about pending changes were released early online. Incoterms 2020 booklet can be purchased from the ICC website when it’s officially realised. Incoterms has been around since 1936 and just like ICC DLC UCP rules, incoterms is a universal delivery application, recognised by jurisdictions all around the world. FTNX applies Incoterms intently in all its contracts. ICC Paris, France, has a consultative status via the Charter of the U.N.
CNI: Cost and Insurance:
In essence it’s a FOB&I variant or FCA&I allowable variant. Nothing here for the PCT to address and is in fact a useless delivery term, as securing insurance is a problematic at the best to time. I don’t see any great changes at all. The seller offers the buyers cost at FOB plus insurance is what could have been applied anyway with under incoterms 2010. FTNX has offered this kind fo delivery term in the past with negative results as obtaining reliable insurance quotes / rates on online is very difficult for some countries to claim on. The end buyer takes care of transport. Add to this the ‘Emperor TRUMP’ factor which has reduced the PCT market place, and alienated goods from USA being easily touted into countries currently who are not happy with added Tariffs imposed by USA. Foreign Insurance coverage from Europe and U.K rather the USA is also the preferred aspect among Asian traders. In CFR the issuance coverage had to be secure by the end buyer before signing the contract with FTNX which is just a small aspect our safe and formidable procedures.
DDP, FAS and EXW Removed
These Incoterms may be cancelled under the 2020 version. In effect nothing wrong with a PCT using such aspect in matters of ‘pricing’ rather than ‘delivery.’ Since 2005 have have always treated ‘gate prices’ to infer an ‘EXW’ incoterms delivery status. The EXW could apply the price of goods in where the actual FAS or FOB delivery modes and differential therein is paid separately as submitted on the supplier’s invoice for the account of the end buyer. PCT cannot use DDP, DTP or EXW anyway; a rule which has already been in effect by FTNX since 2010. DTP (Delivery at Terminal Paid) and DPP (Delivery at Place Paid ) are going to be added instead is the understanding which are delivery terms we cannot apply either. Getting rid of FAS is not an issue, as we have tried FAS intently with negative and adverse results.Whether the agent of the buyer was at loading port on the other side of the world, or not to witness when a FCL is attached to the crane ready for the FCL to be loaded on board a ship alongside, is pointless endeavour.
ICC FCA Incoterm
FCA delivery mode is going to be expanded, as around 44% (-/+10%)of all FCL sales apply this delivery term which we also are able to use intently. We cannot ( should not ) use FOB delivery term for FCL deliveries. In effect delivery to CFS will still apply to the PCT as the primary place of delivery. With this new aspect FCA could now also mean delivery for instance to a local factory or warehouse could also apply which is problematic. Hence insisting on CFS delivery was the best application, as an official receipt from a state or federal endorsed authority via customs carries weight as a presentation document. To deliver the FCL’s to the warehouse of the buyer situated in the same country as a supplier is a strange delivery aspect to apply on the standing FCA rule, as the supplier is usually the one filling the container, and delivering it to the nearest CFS. For a local supplier to sell directly to the local buyer and then deliver such goods locally “is not really international trade” but more to do with localised commerce. In fact the new addition to FCA will fall upon the same sword that made the ‘EXW’ Incoterms which offered an adverse and precarious trading aspect. What happens when factory or warehouse gates are closed and the goods are left outside the gate, inside the open car park belonging to the warehouse or factory. Has delivery occurred? If deliver is dependent on a warehouse receipt or confirmation slip, then what if the factory or warehouse went broke, or is closed for holidays during a festive season. Customs Freight Station are always open and FCL arrival can be officially confirmed. Nothing to address there by a PCT. We remain fixed to the CFS delivery mode. More clarification advised early 2020
FTNX is continuing to approach banks, shipping companies and insurance companies serving opinions on how they can specially help an informed PCT in matter of payments. Our white paper on the matter will be advised by mid 2020 as the FTNX broadens it trading agenda.