With increasing pace of globalization, businesses worldwide have broader access than ever before to markets across the world. The goods are sold in more countries in larger quantities and in greater variety. But with increased volume of trade and global economic scenario, there are chances of increased trade disputes on frivolous grounds. Adherence to trade facilitation rules of the Paris based International Chamber of Commerce (ICC) will help reduce the risks of trade disputes substantially, if not eliminate them altogether.
This was highlighted at the ICC India – BNP Paribas – FICCI – FAPCCI Seminar on Managing risks through LCs, Guarantees, SBLCs & BPO, held on September 03, 2014, in Hyderabad.
Attended by over 100 participants from banks, corporates, law firms & consultancy organisations, the seminar was addressed by Mr Nimesh Karwanyun, Managing Director and Head of Global Transaction Banking, BNP Paribas ; Mr Anil Reddy Vennam, Senior Vice President, FAPCCI; Mr K Parameswaran, Corporate Advisor and a leading trade expert in International Trade and Finance; and Mr Ashok Ummat, Executive Director, ICC India, International Chapter of the Paris based International Chamber of Commerce.
In his opening remarks, Mr Nimesh Karwanyun highlighted the leading role played by BNP Paribas in International Trade Finance and impressed upon the importance to follow ICC rules for trade facilitations.
Mr Anil Reddy Vennam, Senior Vice President, FAPCCI, addressing the delegates, emphasized the importance of following ICC trade facilitation rules and the increasing role of technology in trade payments.
In his presentation, Mr K Parameswaran, Corporate Advisor and a leading trade expert in International Trade and Finance, highlighted important issues like overview of changing trends in international trade; risk perception of an exporter/Importer in international trade; Impact of ICC Rules in trade transactions; understanding ISBP 745 on examination of documents; avoiding discrepancies and discrepancy charges; ensure straight through processing of documents; operational issues in Bank guarantees and Standby letters of credit; comparative analysis of URDG 758 & ISP 98 and its impacts on trade transactions; Bank Payment Obligation (BPO) – from the corporate and bank perspective; how BPO will be beneficial to the parties in International trade etc.
Mr Ashok Ummat, Executive Director, ICC India, highlighted the anticipated rise in world trade, there could be chances of increases in trade disputes. I understand that global trade growth was a little above 3% during 2013, although picked up to an annualized growth rate of 4% during the first quarter of 2014 and is anticipated to accelerate beyond 5% through 2016 as per recently released ICC Global trade Survey 2014. To reduce the chances of disputes, if not eliminate them altogether, all stakeholders should follow the ICC trade facilitation rules.
ICC is the world business organization, a representative body of world business that speaks with authority on behalf of enterprises from all sectors in every part of the world. Fundamental mission of ICC is to promote trade and investment across frontiers and help business corporations meet the challenges and opportunities of globalization.