Authors: Roberto Bergami; Lucie Tichá
Addresses: Department of Trade, Tourism and Language, University of South Bohemia, Studentská 787/13, CZ-37005 České Budějovice, Czech Republic ' Department of Trade, Tourism and Language, University of South Bohemia, Studentská 787/13, CZ-37005 České Budějovice, Czech Republic
Abstract: Delivery of goods across international boundaries is an important consideration for any export sales contract. To assist international traders, the International Chamber of Commerce (ICC) published a new set of delivery terms - Incoterms® 2020, effective 1 January 2020. Using a practical approach, this paper considers the main Incoterms® 2020 rules through a risk management lens, highlighting major challenges and offering potential risk mitigation strategies to reduce exporter exposure in international sales contracts. The paper concludes that the exporting firm should adopt an enterprise risk management (ERM) approach to effectively minimise the risks associated with the physical delivery of export consignments.
Keywords: Incoterms® 2020; risk management; risk mitigation; international trade; export risk; international delivery terms; international sales contracts; enterprise risk management; ERM; force majeure clauses in export contracts; customs clearance; tariffs and taxes; export documentation; international carriage of goods; United Nations Convention on Contracts for the International Sale of Goods (1980); International Chamber of Commerce.
International Journal of Economics and Business Research, 2022 Vol.23 No.2, pp.255 - 273
Received: 23 Apr 2020
Accepted: 10 Oct 2020
Published online: 31 Jan 2022 *