While launching the New Incoterms 2020 Rules at a city hotel in Dhaka on Sunday, commerce minister Tipu Munshi said Bangladesh's trade is expanding year-on-year, so practice of the Incoterms 2020 will be essential.
Bangladesh has been following all international trade tools for its export and imports, Incoterms (International Commercial Terms) rules are one of them. The rules are internationally accepted standards which define the responsibilities of sellers and buyers for the delivery of goods under sales contracts, he said.
On the economy, the minister said Bangladesh made remarkable achievement in FY 2019.
In the last fiscal, Asian Development Bank (ADB) also termed Bangladesh as the fastest-growing economy in the Asia-Pacific Region due to its 8.35 per cent growth, he said.
Mr Munshi said such growth became possible due to strides by finding new markets for its exports and attracting large number of foreign investors as well as investing in a variety of mega modernisation projects.
"FDI (Foreign Direct Investment) increased to 5.36 per cent year-on-year during July-October period of FY20," the minister pointed out.
ICC Bangladesh president Mahbubur Rahman said global economy growth has given most businesses greater access than ever before to markets all over the world.
As a result goods are sold today in more countries, in larger quantities, in greater variety, and at a faster pace. But as both the volume and complexity of global trade increase, so do possibilities for misunderstandings and costly disputes when sale contracts are not adequately drafted, he said.
The Incoterms 2020 rules take account of the increased attention to security in the movement of goods, the need for flexibility in insurance coverage depending on the nature of goods and transport and the call by banks for an on-board bill of lading in certain financed sales under the FCA rule, Mr Rahman added.
After the first introduction of Incoterms in 1936 the first revision occurred in 1957 and thereafter in 1967,1974, 1980, 1990, 2000, 2010. The latest version 2020 Incoterms has become effective globally from 01 January 2020.
ICC Bangladesh organised a day-long workshop on Incoterms 2020 rules. Commerce minister Tipu Munshi thanked ICC Bangladesh for organising the event for bankers, corporate houses and chamber members.
ICCB Banking Commission chairman Muhammad A. (Rumee) Ali in his welcome address advised the participants to acquaint themselves with all the rules of incoternms 2020 and include appropriate rules in the contract to future risk in international transactions.
He also suggested keeping provision for arbitration following the Bangladesh Arbitration Act and the rules of the Bangladesh International Arbitration Centre for settlement of disputes, if any.
MTB CEO & MD Syed Mahbubur Rahman thanked ICC Bangladesh for organising the workshop, which is being attended by bankers and others. He emphasised the need for having appropriate technical know-how for safeguarding the international trade transactions.
He reiterated the new rules have taken into account increased attention to the security in the movement of goods, the need for flexibility in insurance coverage, and the introduction of on-board bill of lading under FCA rules are just to mention a few.
The launching ceremony was attend by ICCB vice president Mrs Rokia A Rahman, ICCB executive board member Mir Nasir Hossain, Uttara Group chairman Mr Matiur Rahman, former BB executive director Mr Ahsanullah, former Sonali Bank managing director Mr Mohammad Hossain, former Pubali Bank managing director Mr Helal Uddin Ahmed, ICCB secretary general Ataur Rahman and MTB SEVP Mr Md Bakhteyer Hossain. Mr ATM Nesaul Hoque, vice president, MTB, conducted the workshop.
A total of 125 participants from banks, law firms and national companies attended the day-long event.
