An Analysis of Delivery/Transport Documents Content in Relation to the Contract of Carriage under Incoterms 2020 Rules

Purpose - The purpose of this study is to review and analyzes the contract of carriage and delivery/transport document in light of the major changes made to the Incoterms^® 2020 rules forced into effect on January 1st, 2020. Design/methodology - This study analyzed responsibility for the loading and unloading of goods under the contract of carriage in Incoterms 2020^® rules forced into effect by the ICC from January 1, 2020, and what document must be presented as evidence of delivery by the seller. Findings - A review revealed that in Rule C, the costs of unloading at the place of destination are determined by the terms of the contract of carriage, and in the DAP and DDP rules, if the seller bears the unloading costs, such unloading costs cannot be recovered from the buyer. To settle this issue, the seller needs to make a contract of carriage by sea with the carrier on FI terms. Furthermore, in the case of containerized goods that the FCA should be used, FOB was misused because the seller could not present an on-board bill of lading in the L/C transaction. However, it was confirmed that in FCA, the parties can use an optional mechanism to issue an on-board bill of lading. Originality/value - Incoterms 2020^® rules are still widely used in international trade by parties to contract sales around the world, just like Incoterms 2010^® rules. This study attempts to reduce or eliminate disputes that may arise from interpretative misunderstandings between the parties in the contract of sales concluded by the seller and the buyer.