Foreign Exchange and Risk Management

Topic
INTERNATIONAL CHAMBER OF
COMMERCE
Introduction, Mission, Functions, History
Role in Developing International Trade

GROUP NO. 15
(SECTION-B)
1.HUSNAIN NAZIR M20BBA075
2.MUHAMMAD RAMZAN M20BBA107
3.USMAN ARSHAD M20BBA089
4.MUHAMMAD AZEEM M20BBA065

Hailey College of Banking & Finance

University of the Punjab, Lahore
 Member Name Assignment Part
Husnain Nazir M20BBA075 Introduction, Mission, History of
International Chamber of Commerce
Muhammad Ramzan M20BBA107 Goble Networks, Tool and
frameworks, International trade
transactions (Incoterms, Models
Contracts and Clauses, Rules for
documentary Credit), ATA Carnet
Usman Arshad M20BBA089 Certification of origin, Dispute
Resolution, (Mediation and its types),
Arbitration, Conciliation
Muhammad Azeem M20BBA065 Policy Framework, Business
opportunities and development, World
Chambers Congress, Electronic
marketplaces, Counterfeiting and
piracy, Business and Professional
Associations
Division of Work

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What Is the International Chamber of Commerce (ICC)?

The International Chamber of Commerce is the largest, most diverse business

organization in the world. The ICC represents 45 million companies in over 100
countries with broad business interests.

The ICC's networks of committees and experts represent the full range of business
sectors. They also maintain contact with the United Nations, the World Trade
Organization, and other intergovernmental agencies.

 The International Chamber of Commerce (ICC) is the largest business

organization in the world, with 45 million-member companies from more than
100 countries. 
 The International Chamber of Commerce (ICC) aims to foster international
trade and commerce to promote and protect open markets for goods and
services and the free flow of capital.
 The ICC performs a number of functions for businesses, including the
establishment of rules, dispute resolution, policy advocacy, and training.
 The ICC's vast networks of committees and experts belong to a full range of
business sectors and keep members informed of all issues that affect their
industries.
 The ICC maintains contact with the United Nations, the World Trade
Organization, and other intergovernmental agencies.

Understanding the International Chamber of Commerce (ICC)

The ICC aims to foster international trade and commerce to promote and
protect open markets for goods and services and the free flow of capital. The ICC is
responsible for a number of functions, including the establishment of rules, dispute
resolution, policy advocacy, and training. The ICC also wages war on commercial
crime and corruption to bolster economic growth, create jobs and
stabilize employment, and ensure overall economic prosperity.

Because members of the ICC and their associates engage in international business,

the ICC has unparalleled authority in setting rules that govern cross-
border business. While these rules are voluntary, thousands of daily transactions
abide by the ICC-established rules as part of regular international trade.

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Mission of ICC

We make business work for everyone, every day, everywhere

ICC aims to promote international trade and investment as vehicles for inclusive
growth and prosperity.

From resolving disputes when they arise in international commerce to supporting

global efforts to streamline customs and border procedures, we support
multilateralism as the best way to address global challenges and reach global goals.

Having witnessed the power of international commerce to lift millions of people out of
poverty, today we have our sights set on the future of globalization, working to
promote inclusive and sustainable growth to the benefit of all.

ICC work to promote international trade, responsible business conduct and a global
approach to regulation by combining our global influence with our unique expertise in
advocacy, standard setting activities and global services.

In the activities ICC carry out every day in our work to support the resolution of
commercial disputes, through policy advocacy, in the development of rules and
guidelines, in their training courses, and in the delivery of other practical tools and
services, ICC help you adapt to the challenges of trading in today’s fast-paced global
economy.

Despite their wide diversities, Chambers of Commerce and Industry generally share
a common mission, which is

 To promote, develop and further the economic well-being of members by

providing
 A collective voice in advocacy to represent and protect members’ interests
 Quality services to help members enhance their competitiveness and succeed
in their businesses thereby contributing significantly to the economic progress
of the nation.

Agenda

To achieve their mission, Chambers of Commerce and Industry have on their

agenda, a broad range of functions and services. These include

 Representation
 Networking
 Information services
 Business and trade development
 Training and consultancy services
 Membership development
 Special export promotion services, etc.

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 Functions Activities
Representation
Hold regular dialogues with government to advocate, provide
feedback on, and help fine-tune policies and legislations
affecting business practices
Serve on statutory boards and government committees to help
formulate policy guidelines and set standards that will enhance
business climate and members’ competitiveness

Networking Forge strategic alliances with local and foreign business

organizations to establish and develop mutually beneficial
relationships via Memoranda of Understanding, Joint
Consultative Committees, etc.
Join a global network of Chambers of Commerce to facilitate
co-operation (e.g. ASEAN-CCI, CACCI, etc.)
 Association of Southeast Asian Nations
 Confederation of Asia-Pacific Chambers of Commerce
and Industry
Provide leadership to co-ordinate members’ efforts to trouble-
shoot, address, solve common problems/issues affecting
business operations
Membership Build up a membership base through recruitment of new
members and retention of existing ones. This is achieved by …
Development
• Launching membership drives to supplement on-going
recruitment
• Sustaining members’ interest by offering quality
services, enhancing membership status and privileges
• Encouraging co-operation and fraternity amongst
members by organizing social and sports events

Information provide relevant business information to members such as

Services information on business opportunities, technological
advancements, government rules and regulations, etc
maintain a trade library for members’ use

conduct market surveys and economic research and circulate

findings to members through newsletters, economic bulletins,
general membership circulars or IT tools

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 Functions Activities

Trade and publish a directory of members, their businesses and capabilities

Business process trade enquiries

Development
operate a business matching center to provide services such as …

• arranging buyer-seller meetings

• providing facilities and secretarial services for meetings

between trade visitors and members

identify trade and investment opportunities and help members

maximize these through

• organizing trade and investment missions

• arranging meetings between members and visiting trade

and investment missions

• organizing trade fairs and exhibitions

• coordinating members’ participation in trade shows

maintain a product display center to showcase members’ products

(product display centers are usually sited within the chamber’s

premises for easy access to trade visitors but if finances allow, they

could be sited in major overseas markets as in the case of the

Hong Kong Trade Export Council)

issue certificates of origin, ATA carnets

Special Export
Services

Training and operate a training that will offer human resource development
Consultancy/ programmers, skills and technological upgrading courses, etc.

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 Advisory Services

organize meetings, conferences, workshops, seminars to provide

members with fora for exchange of views and experiences

encourage member companies to enhance competitiveness

through

 Quality management – e.g. set up quality circles; adopt

“good housekeeping” practices; help members to attain ISO
standards
 Improved product design – e.g. organize competitions to
reward good product and packaging designs

encourage members to computerize their operations and take other

IT initiatives to achieve greater efficiency

maintain a list of consultants, resource personnel, professionals,

etc. to whom referrals can be made if members require their
services

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The History of the International Chamber of Commerce (ICC)

The International Chamber of Commerce was created shortly after World War I when
real regulation or security concerning international trade and business interests was
not existent. Over the years, the ICC became a foundation on which rules of ethical
and profitable trade between nations could be established.

The rules the ICC laid down in its earliest years are the principles it stands on today,
principles that influence almost every area of business and trade around the world.

The ICC was founded in Paris, France in 1919. The organization’s international
secretariat was also established in Paris, and its International Court of Arbitration
was formed in 1923. The first chair of the chamber was Étienne Clémentel, the
early-20th-century French politician.

In 1919

A handful of entrepreneurs decided to create an organization that would represent

business everywhere. They were determined to bring hope to a world still devastated
by the First World War, which had just ended. They resolved to replace fear and
suspicion with a new spirit of friendly international cooperation among business people.
They founded the International Chamber of Commerce and called themselves "the
merchants of peace".

In the 1920s the ICC focused on reparations and war debts. At that time the world had
few working international structures and no world system of rules to govern trade
relations. A decade later, it struggled through the years of depression to hold back the
tide of protectionism and economic nationalism. The ICC saw the creation of the
multilateral trading system with the birth of the GATT, the predecessor of the WTO, and
contributed to its strengthening to the current day.

The General Agreement on Tariffs and Trade (GATT)—signed on October 30, 1947,

by 23 countries—was a legal agreement minimizing barriers to international trade by
eliminating or reducing quotas, tariffs, and subsidies while preserving significant
regulations.

GATT is replaced by WTO

The 128 countries that had signed GATT by 1994

On 1 January 1995, the WTO replaced GATT, which had been in existence since
1947, as the organization overseeing the multilateral trading system.

Because WTO better than GATT

 The WTO covers services and intellectual property.
 The WTO dispute settlement system is faster, more automatic than the old
GATT system.
 Its rulings cannot be blocked.

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In 1923

ICC establishes International court of Arbitration

The International Court of Arbitration® is the world’s leading arbitral

institution. Since 1923, we have been helping to resolve difficulties in
international commercial and business disputes to support trade and
investment.

International court of Arbitration perform an essential role by providing individuals,

businesses and governments alike with a variety of customizable services for every
stage of their dispute.

Although we are called a court in name, we do not make formal judgments on

disputed matters.  Instead, we exercise judicial supervision of arbitration
proceedings. International court of Arbitration responsibilities include:

 confirming, appointing and replacing arbitrators, as well as deciding on any

challenges made against them
 monitoring the arbitral process to make certain that it is performed properly
and with the required speed and efficiency necessary
 scrutinizing and approving all arbitral awards to reinforce quality and
enforceability
 setting, managing and — if necessary — adjusting fees and advances
 overseeing emergency proceedings before the start of the arbitration

International court of Arbitration purpose is to ensure proper application of the ICC

Rules, as well as assist parties and arbitrators in overcoming procedural obstacles.
These efforts are supported by the Court’s Secretariat, which is made up of more
than 80 lawyers and support personnel.

English and French are the Court’s official working languages. However, we can
administer cases in any language and communicate in all major languages, including
Arabic, Chinese, German, Italian, Portuguese, Russian and Spanish.

International court of Arbitration continuously seek to improve efficiency, control time

and costs and aid enforcement and confidentiality by introducing innovative new
arbitration tools and procedures. This ongoing focus makes certain that we are
always in touch with the concerns and interests of trading partners throughout the
world.

In 1933

Published 1st rules for Uniform Customs and Practice for Documentary Credit

Banking plays an undeniable role in making trade work for all, allowing even
small businesses to take risks and conquer new international markets. Banks

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underpin more than a third of global trade transactions, representing trillions
of dollars each year.

And if trade needs financing to flow smoothly around the world, banks in turn need
common rules and guidelines to deal with their counterparts from other countries in
order to avoid the confusion that comes with conflicting national rules.

Having companies across the globe voluntarily abide by the same guidelines also
levels the playing field, making it easier for small and medium sized enterprises to
integrate foreign markets and global value chains, and ensuring that trade is more
inclusive.

ICC’s global rules for documentary credits were established in the 1930s a time of
growing nationalism and protectionism and have since become the most successful
privately drafted rules for trade ever developed.

Every year, trade transactions of over US$1 trillion are conducted on the basis of
these ICC rules on documentary credits now known as UCP600 yet international
trade is constantly evolving. This leads ICC to continually adjust and overhaul our
rules to reflect the changing nature of banking in trade.

ICC also develops guidelines for fields, such as forfaiting, demand guarantees and
supply chain finance—all ways that banks work with companies to mitigate the risks
involved in trade.

As disputes between companies and banks inevitably occur within this vast area of
work, ICC’s expertise is also used to help parties resolve their disagreements around
trade finance documents quickly and without going to court.

In 1936

Publish 1st edition of Incoterm rules

CC’s world-renowned Incoterms® rules facilitate trillions of dollars in global

trade each year. 
Incoterms® rules

The Incoterms® rules are the world’s essential terms of trade for the sale of goods.
Whether you are filing a purchase order, packaging and labelling a shipment for
freight transport, or preparing a certificate of origin at a port, the Incoterms ® rules are
there to guide you. The Incoterms ® rules provide specific guidance to individuals
participating in the import and export of global trade on a daily basis.

Since its founding in 1919, ICC has been committed to the facilitation of international
trade.

Different practices and legal interpretations between traders around the world
necessitated a common set of rules and guidelines. As a response, ICC published

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the first Incoterms® rules in 1936. ICC have been maintaining and developing them
ever since.

The world business organization was pleased to announce the publication

of Incoterms® 2020, as ICC celebrated its Centenary in 2019. The newest edition
of the Incoterms® rules will help prepare business for the next century of global trade.

Use Incoterms® rules in international trade

Although other clauses for global trade exist around the world, such as the
Harmonized Tariff Schedule of the United States, Incoterms ® rules are global in their
reach. Similarly, Incoterms® rules do not include trade terms codified for national
purposes, such as the “less than truckload shipping” (LTL) rule of the United States.
Unlike national trade policies, Incoterms ® rules are universal, providing clarity and
predictability to business.

 “Incoterms®” stand for

“Incoterms®” is an acronym standing for international commercial terms. “Incoterms ®”

is a trademark of the International Chamber of Commerce, registered in several
countries.

The Incoterms® rules feature abbreviations for terms, like

 FOB (“Free on Board”),

 DAP (“Delivered at Place”)

 EXW (“Ex Works”),

 CIP (“Carriage and Insurance Paid To”),

Which all have very precise meanings for the sale of goods around the world.
In 1944

ICC represent business at Bretton Wood Conference which propose an International

Trade Organization to establish rule and regulation for International Trade

In 1951

Establish International Bureau of Chamber

As a non-political, non-governmental body, WCF is the backbone of the

chamber community providing a platform for chamber leaders to communicate
and collaborate with each other on matters of mutual interest and facilitating
beneficial partnerships.

WCF’s extensive chamber membership plays a pivotal role in connecting ICC to

SMEs worldwide and in promoting the important role SMEs play in the global

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economy. Recognizing this valuable role, WCF provides chambers with the support
they need to help SMEs face the challenges and opportunities of globalization.

WCF works to enhance chamber capacity to foster private sector development and

has developed strong ties with a range of multilateral organizations, including the
World Bank, the United Nations Development Programme and regional development
banks.

WCF also works with other private sector groups to extend programmes of
assistance and training for chambers of commerce, particularly from developing and
least developed countries.

Initially called the International Information Bureau of Chambers of Commerce, WCF

was renamed International Bureau of Chambers of Commerce in 1951, before
adopting its present name in 2001.

The activities and projects of WCF involve local, regional, national, bilateral,
transnational, as well as public-law and private-law chambers.

In 1977

Become the 1st business organization that’s issue Anti-Corruption Rules

ICC is committed to an efficiently functioning global economy characterized by

free and fair competition. Corruption threatens the integrity of markets,
undermines fair competition, distorts resource allocation, destroys public trust
and undermines the rule of law.

For decades, ICC has taken the lead in denouncing corruption and in developing
measures to combat it. When business transactions are affected by the payment of
bribes, they are not transparent and disrupt a sound competitive environment.

ICC encourages self-regulation by business in confronting issues of extortion and

bribery, and to provide business input into international initiatives to fight corruption.

The risk of corruption faced by businesses varies according to a number of

parameters, including their size, their international exposure, and the nature, scale
and diversity of their activities.

More remains to be done for SMEs in particular, who are especially vulnerable and
often lacking in resources to fully comply with anti-corruption requirements.

Fighting corruption within the private sector, among both MNEs and SMEs, is a
progressive and incremental process. It requires strong commitment from top
management. And it requires high-quality and systematic organization to ensure that
anti-corruption efforts become an integral part of the corporate culture, at all levels.

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A thorough and pragmatic implementation of ethics and anti-corruption standards
within companies is needed.  This entails a great deal of integrity awareness-raising
in the private sector and all other sectors of society.

As the first business organization to publish anti-corruption rules remains at the

forefront of the development of ethics, anti-corruption and corporate responsibility
advocacy codes and guidelines.

We work to define key anti-corruption priorities for policymakers and the global
business community. Our range suite of anti-corruption tools, focused on private
sector anti-corruption training and self-regulation, concretely responds to global
goals and efforts by G20 leaders to move from words to accelerated action to
eliminate this scourge on lives and livelihoods the world over.

In 2003

Becomes the Signatory of UN Goble Compact

In 2008
Upon the request of world trade Organization Director General, ICC launches report
to analyses trade finance shortage and possible measures to address the problem

Members of the ICC Commission on Banking Technique and Practice and

representatives from international financial institutions, private banks, and
other experts met at the WTO last week to analyze the shortage of trade
finance and discuss possible measures to address the problem.

Participating in the meeting were 30 representatives from 19 international and

regional financing institutions, private banks, credit insurance agencies and the WTO
secretariat. The ICC Commission on Banking was invited to attend the meeting and
was represented by commission member Vincent O’Brien, Director, Electronic
Business School of Ireland. Upon the request of WTO Secretary General Pascal
Lamy, ICC prepared a report entitled Trade Finance in the Current Financial Crisis:
Preliminary Assessment of Key Issues.

The report, submitted to Mr Lamy by ICC Chairman Victor K. Fung, indicated that the
credit crunch is entering a new phase where it is increasingly difficult to predict the
timing and magnitude of events. What is clear is that we are now facing a period
when it will be even more difficult to raise money and, in the weeks, to come,
financial markets will continue to deteriorate due to continued deleveraging and lack
of liquidity.

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“The current environment is creating a risk-averse culture, both amongst banks and
traders. With regard to the latter, banks report customers asking for confirmed letters
of credit (LCs) where they previously dealt on cash against delivery (CAD) or open
account. However, bank perception of risk is leading to tightening liquidity in some
instances and therefore greater difficulty in getting bank confirmations and export
finance,” said the ICC report.

Participants at the WTO meeting agreed, indicating that the main problem is the
shortage of liquidity to finance trade credits. The market currently estimates the
liquidity gap in trade finance at about US$25 billion. Risk assessment is also a very
acute problem faced by financial institutions and the global impact is being felt most
acutely by traders and banks in the emerging market economies. The ICC report
clearly pointed to the growing evidence of trade credit shortage being a threat to
world trade as a whole and to emerging markets in particular. The global credit
crunch, combined with the sharp decline in asset prices and the increase in the cost
of trade credit on a sustained basis, is raising widespread concern about the
availability of trade finance over the next few months.

The ICC report also highlighted growing concerns in the pricing of trade including
evidence of trade finance deals offered at 300-400 basis points above interbank
refinancing rates – two to three times more than the going rate a year earlier. ICC is
also very concerned by an increase in the number of court injunctions barring
payment under letters of credit on unsound technical grounds. Some of our members
also reported intense scrutiny from some banks, eventually leading to higher rates of
rejection of trade documents on the basis of minor discrepancies. The commission is
monitoring the situation closely.

The fact that traditional LC markets may benefit in some ways from the current
situation is also noted in the report. “Traders now want their banks to guarantee each
transaction. As a result, the LC sector may prove to be more resilient than other
forms of lending. Around 90 % of the US$13.6 trillion in world merchandise trade is
funded by trade finance, with a large part of emerging market business financed
through LCs.”

Finally, the ICC report stressed the need to improve the resilience of emerging
market economies: “Structural measures could include an expanded use of asset-
backed securitization funding structures, risk-sharing, and greater risk differentiation
by banks and public authorities… Short-term guaranteeing of trade finance facilities
by governments and multilaterals is seen as a priority. If the crisis worsens, ICC
suggests that, in cases where solvent   enterprises and exporters in a crisis country
are unable to access trade finance, and/or the relevant sovereign’s ability to provide
credible guarantees required by external trade finance providers is limited, targeted
support should be made available from multilateral agencies to facilitate a
resumption of private sector financing.” The report also indicated that it is important
for export credit agencies to resume the practice of providing short-term cover.

Participants at the WTO meeting of 12 November also stressed the importance of

filling liquidity gap by increasing the opportunity for commercial banks to co-share
risks with international financial institutions and export credit agencies.

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ICC urged that such measures be taken forward with the minimum of delay,
preferably within the next six months. In the longer term, ICC believes that
governments should explore how trade policy reforms can enable short-term finance
to flow better, and create deeper and more liquid markets.

The ICC Commission on Banking will continue exploring the impacts of the current
situation. An updated report will be made available to delegates at the upcoming
banking commission meeting on 11-12 March 2009 in Dubai.

In 2015
The ICC academy is launched to promote the high standards of excellence in
global professional education
The ICC Academy is the educational arm of the International Chamber of Commerce
(ICC). We offer dynamic e-courses and specialized programmes on trade finance
and cross border transactions designed by leading industry experts to meet the
educational needs of banks, corporates and other organizations at the forefront of
international trade.

In 2016
ICC granted Observer Status at United Nations General Assembly

In an unprecedented move, the United Nations (UN) General Assembly has

today granted Observer Status to the International Chamber of Commerce
(ICC).

The decision-taken by 193 members of the UN General Assembly during its on-
going 71st session in New York-is the first time that a business organization has
been admitted as an Observer at the UN General Assembly. The list of UN
observers is highly restricted and features principally intergovernmental
organizations.

The new role for ICC means that business will for the first time have direct voice in
the UN system. The decision paves the way for ICC to contribute directly to the work
of the General Assembly and reflects the vital role the private sector will play in
implementing the UN’s 2030 Agenda for Sustainable Development.

ICC’s new status could not have come at a more important time: not only does the
United Nations 2030 Agenda place an unprecedented focus on the private sector to
drive sustainable development; but there is also an urgent need to counter growing
populist and protectionist forces within the global economy. ICC has indicated that its
key areas of engagement with the United Nations will be trade, sustainable
development, the global refugee crisis, and the digital economy.

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Incoterms
To facilitate commerce around the world, the International Chamber of Commerce
(ICC) publishes a set of Incoterms, officially known as international commercial
terms. Globally recognized, Incoterms prevent confusion in foreign trade contracts by
clarifying the obligations of buyers and sellers.
Parties involved in domestic and international trade commonly use them as a kind of
shorthand to help understand one another and the exact terms of their business
arrangements. Some Incoterms apply to any means of transportation, while others
apply strictly to transportation across water.
International commercial terms—Incoterms for short—clarify the rules and terms
buyers and sellers use in international and domestic trade contracts.
The International Chamber of Commerce (ICC) developed Incoterms in 1936 and
updates them periodically to conform to changing trade practices.
Typical examples of Incoterms rules for any mode of transportation include Delivered
at Terminal (DAT), Delivered Duty Paid (DDP), and Ex Works (EXW).
Incoterms were updated for 2020 and although only one term changed, there are
notable differences in security costs.
The terms are standardized but certain buyers and sellers will prefer individual terms
over others. As such, which terms will be used is a matter of negotiation.

Understanding Incoterms

The International Chamber of Commerce (ICC) developed Incoterms in 1936 and

updates them periodically to conform to changing trade practices. The ICC's mission
is to promote open markets and ensure global economic prosperity through trade.
Because it is a networked business organization that reaches over 45 million
companies in 100 countries, the ICC is seen as having unparalleled expertise in
establishing rules to guide international trade. While the adherence to its Incoterms
is voluntary, the ICC-established rules are commonly used by buyers and sellers as
a regular part of trade transactions.

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Incoterms provide a universal set of rules and guidelines that help facilitate trade. In
essence, they provide a common language trader can use to set the terms for their
trades. Buyers and sellers can use Incoterms in a variety of activities necessary to
conduct business. Typical activities that call for the use of Incoterms include filling
out a purchase order, labeling a shipment for transport, completing a certificate of
origin, or documenting a free carrier agreement (FCA)
Because the ICC regularly updates Incoterms, contracts should specify which
version they are using (e.g., Incoterms 2020). Also, be aware that trade terms used
in different countries may appear identical on the surface, but they can have different
meanings when used domestically.

One of the most important contributions of the ICC is their publication of international
commercial terms, also known as Incoterms. Incoterms are intended to facilitate
global commerce by providing parties involved in domestic and international trade
with a kind of shorthand to help understand the exact terms of their business
arrangements. The ICC developed the Incoterms in 1936. Incoterms are globally
recognized and used in foreign trade contracts to clarify the obligations of both
buyers and sellers.
Some commonly used Incoterms are EXW (Ex Works), FCA (Free Carrier), and FOB
(Free on Board). The term EXW places the maximum obligation on the buyer and
minimum obligations on the seller. The seller must make the goods available at their
premises, or at another named place, and the buyer incurs the risks of bringing the
goods to their final destination.

Incoterms Rules for Any Mode of Transport

Some common examples of Incoterms rules for any mode of transportation include
Delivered Duty Paid (DDP), Delivered at Place (DAP), and Ex Works (EXW). The
seven Incoterms for any mode of transport are below:
• EXW: Ex Works
• FCA: Free Carrier
• CPT: Carriage Paid To
• CIP: Carriage and Insurance Paid To
• DAP: Delivered at Place
• DPU: Delivered at Place Unloaded
• DDP: Delivered Duty Paid
DPU indicates the seller delivers the goods to a terminal and assumes all the risk
and transportation costs until the goods have arrived and been unloaded. After that,

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the buyer assumes the risk and transportation costs of the goods from the terminal to
the final destination.
DDP indicates the seller assumes all the risk and transportation costs. The seller
must also clear the goods for export at the shipping port and import at the
destination. Moreover, the seller must pay export and import duties for goods
shipped under DDP.
Under Incoterm Ex Works (EXW), the seller is only required to make the goods
available for pickup at the seller's business location or another specified location.
Under EXW, the buyer assumes all the risk and transportation costs.
In 2010, the two main categories of Incoterms were updated and classified by modes
of transport. The first classification applies to any mode of transport, while the
second classification only applies to sea and inland waterway transport.

Incoterms Rules for Sea and Inland Waterway Transport

The ICC has specific Incoterms rules for inland waterway and sea transport such as
cost, insurance, and freight (CIF) and free on board (FOB). The Incoterms for sea
and inland waterway transport are below:
• FAS: Free Alongside Ship
• FOB: Free on Board
• CFR: Cost and Freight
• CIF: Cost, Insurance, and Freight

Free on-board shipment terms indicate the seller delivers the goods on board a
designated vessel named by the buyer. The buyer or seller may assume all the risk
and transportation costs depending on whether the goods are sold under the FOB
shipping point or FOB destination point.

Cost, insurance, and freight (CIF) terms indicate the seller must deliver the goods to
a designated port and load them on a specified vessel, assuming responsibility for
paying all transportation, insurance, and loading costs. After that, the buyer assumes
the cost and risk associated with transporting the cargo from the designated port to
its warehouse or business

ICC is the voice of business in major international organizations

and negotiations.

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Contributing to the policy debate from a global business perspective ICC’s outreach
and participation at this global level spurs action by business and governments alike
on a range of issues from sustainability to Internet governance.
Since the 1940s, ICC has engaged in a broad range of activities with the United
Nations (UN), the World Trade Organization (WTO), the World Intellectual Property
Organization (WIPO), the G20 and many others.
ICC also actively represents business at global forums such as the World Summit on
Sustainable Development, the UN Framework Convention on Climate Change
(UNFCCC) and the annual Internet Governance Forum (IGF).
As the world business organization, we have been involved in the work of the
Economic and Social Council (ECOSOC) and the International Telecommunication
Union (ITU). ICC has also represented business at the Conference on Financing for
Development, the World Summit on Sustainable Development, and the World
Summit on the Information Society.

Customer Facilitation
Recent studies from the World Trade Organization (WTO) suggest that
improvements in border administration throughout the world could boost global trade
by US$ 1 trillion per year, meaning that trade facilitation could have a bigger impact
on international trade than if all the world’s remaining tariffs were removed.
The developing world and SMEs disproportionately suffer from cumbersome border
procedures, making them the biggest beneficiaries of greater trade facilitation.
Easier, quicker and less expensive processes allow many companies to trade
internationally for the first time, integrating global value chains.
In a watershed moment for global trade, the WTO Trade Facilitation Agreement
(TFA) entered into force in February 2017. The TFA aims to speed up customs
procedures, by making processes and fees more transparent for companies, rooting
out corruption and taking advantage of new technologies.
Research by the World Economic Forum suggests TFA implementation could trigger
a 60% to 80% increase in cross-border SME sales in some economies.
ICC has long been at the forefront of the global movement pushing for trade
facilitation, playing a key role in the TFA negotiations, ratification and
implementation. ICC’s business network also delivers consolidated positions on
other customs issues, such as certificates and rules of origin, customs valuation and
classification, and practical guidance on ICC’s Incoterms® rules.ICC is one of three
organizations that comprise the Global Alliance for Trade Facilitation – an innovative
public-private partnership for trade-led growth and development – and regularly
works with business, governments and international institutions like the World
Customs Organization to advance the global customs and trade facilitation agenda.

Advantages of ATA Carnet

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Established under the ATA Convention and the Istanbul Convention as a trade
facilitation tool, ATA Carnets cut red tape by simplifying and unifying customs border
crossing regulations for temporary import and export.
With the ATA Carnet, exhibitors, salespeople, artists, athletes, TV crews,
technicians, event participants and business travelers may:
• travel through customs without paying import duties, taxes at each customs
border office
• use one unified document for all declarations at home and abroad
• use one document for multiple destinations and trips throughout its one-year
validity
• make advanced customs arrangements at predetermined costs
ATA Carnets cover almost everything, as defined in 11 annexes to the Istanbul
Convention. ATA Carnets are mainly issued to cover:
• goods for use at trade fairs, shows, exhibitions
• professional equipment
• commercial samples
• personal effects and goods for sports purposes
Customs authorities accept ATA Carnets in accordance with the scope of application
that they ratified. The goods must not go through any changes while situated in the
country of temporary importation. ATA Carnets do not cover perishable or
consumable items, goods for processing or repair, or certain means of transportation
defined under Annex C of the Istanbul Convention.
ATA Carnets are widely welcomed by countries wishing to boost international
cooperation and take full advantage of the global economy. ATA Carnets are
accepted in approximately 80 countries/customs territories. The full list is available
here ATA Carnet in your country.

International trade document that certifies that goods in a particular export shipment
are wholly obtained, produced, manufactured or processed in a particular country.
They declare the ‘nationality’ of the product and also serve as a declaration by the
exporter to satisfy customs or trade requirements.
COs are requested by customs, banks, private stakeholders and importers for
several purposes. Almost every country in the world requires CO for customs
clearance procedures: when determining the duty that will be assessed on the goods
or, in some cases, whether the goods may be legally imported at all.
There are two types of COs that chambers can issue:

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• Non-Preferential COs which certify that the goods are subject to no
preferential treatment. These are the main type of COs that chambers can issue and
are also known as “Normal COs”.
• Preferential COs, which certify that goods are subject to reduced tariffs or
exemptions when they are exported to countries extending these privileges. These
COs tend to be closely associated with Regional Trade Agreements.

International Certificate of Origin (ICO) Council:

The ICC WCF International Certificate of Origin Council (ICOC) was set up to
enhance and promote the unique position of chambers as issuing agents of non-
preferential and preferential certificates of origin. We are a global forum facilitating
collaboration between chambers worldwide.
The ICOC is achieving this by implementing the following strategies:
• Coordinated engagement with international, regional and national
governments and agencies through ICC structures.
• Establishment of an International Certificate of Origin Accreditation Chain,
based on the International CO Guidelines, which establishes international best
practice for issuing procedures.
• Development of a series of international training programmes to enhance and
raise the level of chambers’ professionalism and competency in CO issuance.
• Helping chambers in the identification and use of advanced technologies in
the delivery of COs and trade documents.
• Call for the liberalization of issuance of Preferential CO to Chambers by
Customs authorities.
• Call for the recognition and acceptance of electronic CO by governments.
Any chamber issuing COs, and has trade facilitation experts, can participate to
become an ICO Council member.

Mediation:
Mediation is a flexible and consensual technique in which a neutral facility helps the
parties reach a negotiated settlement of their dispute. The parties have control over
the decision to settle and the terms of any agreement. Settlements are contractually
binding and widely enforceable.
The mediation process is designed to give parties a better understanding of each
other’s business needs. As such, each can look for a win-win solution that upholds
their respective interests. The result always remains in the parties’ hands, which
reduces potential risks that are so often associated with other forms of dispute
resolution.

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Mediation is a useful approach when parties in dispute have an ongoing relationship
that they wish to preserve, such as a joint venture or long-term supply contract. With
mediation, this is possible whereas there is unlikely to be any legal basis for seeking
such relief in arbitration or litigation.
All ICC Mediations are administered by the ICC International Centre for ADR and
follow the ICC Mediation Rules. Just as the Court is the only body empowered to
administer proceedings under the ICC Rules of Arbitration, the Centre is the only
body entitled to administer proceedings under the ICC Mediation Rules.
ICC Mediation procedure steps include:
1. The procedure with a Request for Mediation filed with the ICC International
Centre for ADR:
• With a pre-existing agreement for ICC Mediation
• Without a pre-existing agreement of the parties: one party is proposing
mediation to the other
2. The Centre acknowledges receipt of Request once it has received the
complete Request including the documents and the filing fee
3. The Centre invites the parties to provide further comments on any outstanding
procedural questions. For example, language(s) of the proceeding, place of the
mediation meetings, timing of the mediation, attributes of the mediator, etc.
4. Selection of the Mediator: Jointly nominated by the parties or appointed by
ICC.
5. Parties pay a provisional deposit to cover the costs of the proceedings until
after the parties’ first meeting with the Mediator or beyond.
6. The Centre transfers the file to the Mediator and invites her/him to contact the
parties.
7. First meeting between the Mediator and the parties (Article 7(2) of the
Mediation Rules) to discuss the conduct of the Mediation.
8. The Mediator communicates the notice pursuant to Article 7(2) of the
Mediation Rules to the parties.
9. The Mediation conducted by the Mediator, probably involving one or more
physical meetings of the Mediator and the parties, possibly involves the exchange of
written documents and conference calls.
10. The Mediation ends with the Settlement Agreement.

Types of Mediation:
• Evaluative,
• Facilitative,

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• Transformative.

Evaluative Mediation:
Evaluative mediators provide feedback and guidance to the parties based on the
mediator’s industry knowledge and previous experience with similar disputes. In
other words, an evaluative mediator evaluates the dispute based on his or her
professional knowledge and experience, allowing the parties to use this expert
knowledge during mediation. Further, an evaluative mediator provides the parties
with information regarding the strengths and weaknesses of their positions and may
predict likely court outcomes. Evaluative mediators may also propose agreements
based his or her expertise in the area and the parties’ interests.

Facilitative Mediation:
Most mediators use the facilitative mediation approach, where the mediator’s primary
role is to facilitate a problem-solving conversation. A facilitative mediator focuses on
the negotiation process. Facilitative mediators assist the parties in identifying the
issues, finding common underlying interests, and formulating proposals to resolve
the dispute. They do not provide assessments or predictions, and they usually do not
have training or expertise in the particular subject-matter in dispute.
Transformative Mediation
The transformative way to deal with mediation doesn't look for the goal of the quick
issue, but instead, looks for the strengthening and shared acknowledgment of the
gatherings in question. Empowerment, as indicated by Bush and Folger, implies
empowering the gatherings to characterize their own issues and to look for
arrangements all alone. Recognition implies empowering the gatherings to see and
comprehend the other individual's perspective - to see how they characterize the
issue and why they look for the arrangement that they do. Often, empowerment and
recognition prepare for a commonly pleasing settlement, yet that is just an optional
impact. The essential objective of the transformative intervention is to encourage the
gatherings' empowerment and recognition, empowering them to move toward their
present issue, just as later issues, with a more grounded, increasingly open view. It
ought to be noted also that accomplishing strengthening and acknowledgment is
evaluated autonomously of a specific result of the mediation. This methodology, as
per Bush and Folger, dodges the issue of the mediator’s defectiveness, which so
frequently happens in critical thinking intervention. Transformative mediation rather
puts duty regarding all results unequivocally on the disputants.

A policy framework

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Policy is document that sets out a set of procedures or goals, which might be used in
negotiation or decision-making to guide a more detailed set of policies, or to guide
ongoing maintenance of an organization's policies.

Policy framework or specific frameworks may refer to:

• Sender Policy Framework
• Security Policy Framework
• NIST Cyber security Framework
• National Planning Policy Framework
• Investment Policy Framework for Sustainable Development
• National Policy Framework for Strategic Gateways and Trade Corridors

Business Development
Business development is the process of implementing strategies and opportunities
across your organization to promote growth and boost revenue.

It involves pursuing opportunities to help your business grow, identifying new

prospects, and converting more leads into customers. Business development is
closely tied to sales — business development teams and representatives are almost
always a part of the greater sales org.

Although business development is closely related to sales, it’s important to note what
makes them different
World Chamber Congress
As a non-political, non-governmental body, WCF is the backbone of the chamber
community providing a platform for chamber leaders to communicate and collaborate
with each other on matters of mutual interest and facilitating beneficial partnerships.

WCF’s extensive chamber membership plays a pivotal role in connecting ICC to

SMEs worldwide and in promoting the important role SMEs play in the global
economy. Recognizing this valuable role, WCF provides chambers with the support
they need to help SMEs face the challenges and opportunities of globalization.
WCF works to enhance chamber capacity to foster private sector development and
has developed strong ties with a range of multilateral organizations, including the

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World Bank, the United Nations Development Programme and regional development
banks.
WCF also works with other private sector groups to extend programmes of
assistance and training for chambers of commerce, particularly from developing and
least developed countries.
Initially called the International Information Bureau of Chambers of Commerce, WCF
was renamed International Bureau of Chambers of Commerce in 1951, before
adopting its present name in 2001.
The activities and projects of WCF involve local, regional, national, bilateral,
transnational, as well as public-law and private-law chambers
Electronic Market Place
An e-marketplace is a virtual online market where organizations register as buyers or
sellers to conduct business-to-business e-commerce over the internet.
There are many types of e-marketplace based on a range of business models. They
can be operated by an independent third party, or be run by some form of industry
consortium that has been set up to serve a particular sector or marketplace.
Services offered by e-marketplaces include electronic catalogues for online
purchasing of goods and services, business directory listings and online auctions.
This guide describes the main types of e-marketplace, the benefits of e-
marketplaces and the implications for e-purchasing.

The end

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