Thursday, October 6, 2011

GNCCI lauds INCOTERMS

The Ghana National Chamber of Commerce and Industry (GNCCI) has observed that the current global rules governing world trade has curbed misunderstanding and ensured fair trade practices.

The International Chamber of Commerce (ICC) instituted INCOTERMS to keep up with the rapid expansion of world trade and globalisation.
The new rules were announced in September 2010 and came into effect on January 1, 2011.

The current revision takes into account issues such as developments in cargo security and the need to replace paper documents with electronic ones.

The acting Chief Executive Officer of GNCCI, Mr. Emmanuel Doni-Kwame, speaking at a seminar in Accra to educate business executives, exporters and stakeholders said: “The global economy has given businesses broader access than ever before to markets all over the world.”

As the volume and complexity of global sales increase, so do possibilities for misunderstandings and costly disputes when sale contracts are not adequately drafted.

Mr. Doni-Kwame noted that “the INCOTERMS rules, the ICC rules and the GNCCI rules on the use of domestic and International Trade terms, facilitate the conduct of global trade.”

He explained that the rules in sale contracts clearly define the parties’ respective obligations and reduces the risk of legal complications.

Since the creation of INCOTERMS rules by ICC in 1936, this globally-accepted contractual standard has been regularly updated to keep pace with development of international trade.

The INCOTERMS 2010 rules take account of the continual spread of customs- free zones, the increased use of electronic communications in business transactions, heightened concern about security in the movement of goods, and changes in transport practices.

The broad expertise of ICC’s Commission on commercial law and practice, whose membership is drawn from all parts of the world and all trade sectors including Ghana, insures that the rules respond to business needs everywhere.
The new rules feature two new rules that reflect advances in international trade over the last decade, and are an essential tool for trade.

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