The effect of Incoterms 2020 on the facilitation of international trade and the challenges of its implementation in Iran

Articles in Press

Document Type : Scientific Research

Authors

1 M.Sc. Student in Private Law, Department of Private Law, Faculty of Humanities .Sabzevar University, Sabzevar, Iran

2 Faculty of Law and Political Sciences of Mazandaran University

Abstract

Incoterms are a vital tool for establishing transparency in the allocation of responsibilities, costs and risks associated with international trade. In particular, the 2020 version of Incoterms replaces term “Delivered at Terminal” (DAT) with “Delivered at Place of Discharge” (DPU), providing a clearer framework for transport responsibilities. The amendments also provide more precise definitions of roles of insurance and transport to ensure that obligations of each party are clearly defined. The emphasis on the use of electronic documents to facilitate trade processes reflects the digital transformation in global trade and seeks to increase efficiency and effectiveness of these processes. This research examines the impact of Incoterms 2020 on global trade, with a particular focus on Iran, and compares it with the challenges and approaches of other international legal systems. The findings show that legal and commercial complexities in Iran require effective measures that are in line with domestic laws and existing logistics infrastructure. In addition, challenges arising from economic sanctions have affected adoption and implementation of these international standards in Iran. The recommendations of this article include creation of comprehensive training programs to help traders better understand Incoterms 2020, improving information exchange among various stakeholders, and upgrading transportation and logistics infrastructure to effectively respond to requirements of international trade. Finally, if the principles of Incoterms 2020 are effectively implemented in Iranian business environment, these standards have significant potential to strengthen international trade, improve operations, and reduce legal conflicts. This positive integration can contribute to Iran’s economic growth in global market.

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Civil Law Knowledge

Articles in Press, Accepted Manuscript
Available Online from 08 October 2025

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