a Universal Logistics Holdings company

OCTOBER TRADE NEWS UPDATE

[DETROIT, Michigan– OCTOBER 8, 2021]

INCOTERMS – THE HISTORY, THE IMPORTANCE, AND THE INTERPRETATION

Incoterms were first created in 1936 by the International Chamber of Commerce (ICC), and are a series of pre-defined commercial terms, created to help regulate the sale of goods with a more reliable method. Their main purpose is to clearly communicate the tasks, costs, and risks associated with international transportation and delivery of goods. Incoterms do not replace or act as a contract between parties, but they are globally recognized, and have been an invaluable tool in the development of global trade. 

Incoterms are essential to ensuring that the proper and timely payment of goods and services transpire on international trade transactions. They serve as a clear rule to help avoid confusion, disagreement, and delays in agreeing to each party’s level of responsibility and cost management of any given transaction. Used correctly between two parties, they should eliminate any unexpected costs and incorrect assumptions of task responsibilities. 

The most common version of Incoterms being used is 2010 version, and although it is still valid for older contracts, it is recommended to now use the 2020 version of Incoterms. One of the features that the 2020 version improves upon, is the simplification of the term definitions and reduction to eleven rules to choose from. These eleven Incoterms service three main clarifications: The point when costs are transferred between seller and buyer, the point when risks are transferred between seller and buyer (especially important for interpreting and purchasing transportation insurance), and the business of processing the customs duties at origin and destination.

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CBSA seeks consultation on measures to strengthen Canada’s trade remedy system: Canada’s trade remedy system provides recourse to Canadian producers injured, or threatened to be injured, by dumped or subsidized imports, or by a surge in imports. The government is seeking stakeholder views with respect to potential amendments to the Special Import Measures Act (SIMA) and the Canadian International Trade Tribunal Act (CITT Act)

https://www.canada.ca/en/department-finance/programs/consultations/2021/consultation-measures-strengthen-improve-access-canada-trade-remedy-system.html

Global services trade recovering but below pre-pandemic levels, WTO barometer indicates: The recovery in global services trade looks set to extend into the third quarter of 2021. However, expansion could proceed along a lower trajectory if the impact of the COVID-19 pandemic turns out to be long-lasting, the WTO’s Services Trade Barometer released on 23 September indicates.

https://www.wto.org/english/news_e/news21_e/wtoi_23sep21_e.htm

CBSA updated findings on upholstered domestic furniture from China & Vietnam: CBSA published updated findings from their SIMA investigation into dumping and subsidy on upholstered domestic furniture products from China and Vietnam.

https://decisions.citt-tcce.gc.ca/citt-tcce/a/en/item/512053/index.do

Strong Cargo Demand Continues in July: The International Air Transport Association (IATA) released July 2021 data for global air cargo markets showing that demand continued its strong growth trend.

https://www.iata.org/en/pressroom/2021-releases/2021-08-31-01/

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For more information on Universal Logistics Holdings, Inc., visit www.universallogistics.com.