what do incoterms not cover 
there are specific instances that incoterms will not cover incoterms do not due to the omission of certain sale conditions working only with incoterms can be constricting all parties involved in any contract should make sure that the applicable instances above are addressed before signing the contract this ensures a smooth business transaction as many legal matters can arise when the parties are working only with incoterms incoterms 2010 vs incoterms 2020although the 2010 incoterms were updated in 2020 there are no significant differences in the naming conventions between the two there was only one change in terminology the 2010 term delivered at terminal dat was clarified to the 2020 term delivered at place unloaded dpu this was done to include all places of unloading not just those in terminals in both instances there are 11 terms 3things become more involved when you move past the terms themselves for example the amount of freight insurance required under the cip term has been increased however this does not affect the cif term 3incoterms 2020 covers situations where either the buyer or seller transports goods using their own vehicles in 2010 it was assumed that these services were provided by a third party carrier and there is a change in the way that the fca rule is used in conjunction with a letter of credit 35in addition security related cost responsibilities have changed these can be associated with export clearance processes as well as the import clearance process the incoterms revision clarified that the most common cost headings are those associated with transport that are the responsibility of the arranging party security costs associated with export clearance will be borne by the seller other than for ex works cases security costs associated with import will be borne by the buyer except for ddp cases 23advantages and disadvantages of incotermsthe single greatest advantage of using incoterms is the standardization and specificity of complicated international trade aspects having a system that eliminates ambiguity between nations has made trading much simpler especially when negotiating terms this saves time and money that would have previously been spent on lawyers who would draft terms basically breaking down incoterms into different languages a notable disadvantage of incoterms is that buyers and sellers often have different preferences when using them sellers for example may choose cif because they understand their shipments better than buyers do buyers in contrast may prefer fob for the same reasons however the terms themselves are not the issue and it becomes more a matter of negotiation over which terms to use vs the clarity of the terms themselves easily understood termsinternational standardizationupdated and clarified by an international body icc differences between buyer and seller preferences when choosing termscertain terms can expose one party to inflated costscan i still use incoterms 2010 after jan 1 2020 yes it is still acceptable to use the 2010 incoterms however both buyer and seller should agree in writing to use either the 2010 or 2020 incoterms version 2