MUSCAT -- Bank Sohar pooled resources with the Omani Centre for Investment Promotion and Export Development (Ociped) to organise a seminar on the new provisions of the Uniform Customs and Practices, called UCP 600 that has come into effect worldwide from July 1, 2007. Over 150 exporters and importers, bankers, insurance and logistics sector professionals attended the seminar.
Speakers at the event included Prof Harkirat Singh of the Indian Institute of Foreign Trade, Faris al Farsi, Acting Director General of OCIPED and Shantanu Ghosh, Deputy General Manager, Operations and IT, Bank Sohar. The latest revision of the Uniform Customs and Practice for Documentary Credits (commonly referred to as 'UCP') is the sixth revision of the rules since they were first promulgated in 1933.
The revision was spearheaded by the International Chamber of Commerce's (ICC) Commission on Banking Technique and Practice. As with the earlier revisions, the general objective was to look into developments in the banking, transport and insurance industries. In addition, there was also a need to look at the language and phraseology used in the UCP and to remove any wording that could lead to inconsistent application and interpretation.
When the work on the revision started three years ago, a number of global surveys had indicated that, because of discrepancies, approximately 70 per cent of documents presented under letters of credit were being rejected at the time of the initial presentation. This had and continues to have a negative effect on the letter of credit being seen as a means of payment in trade transactions.
The ICC felt that if the situation continues, it could have serious implications for maintaining or increasing the market share of the letters of credit as a recognised means of settlement in international trade. Mustafa Ali Mukhtar, Head, Trade Finance at Bank Sohar took the opportunity to inform those present and associated with the import-export business all over Oman that the bank has a complete advisory desk whose sole function is to take both exporters and importers through all the routines of a transaction.
He told them that while it is important for the trade to be aware of the requirements of UCP 600, it is possible to draw on the experience of the Advisory Desk at Bank Sohar who as an experienced team in trade finance. "Trade finance is not just an operations department at Bank Sohar it's a part of the total marketing services," said Mukhtar.
He added that working with the experts at Bank Sohar would give exporters and importers several benefits including speedy and error-free documentation. He explained that non-compliance with UCP 600 might cause substantial losses to the customer. When compliance is in line with the requirements of UCP 600, there is no scope for any rejections. Mukhtar offered the guarantee of shortest turn around time for processing of trade transactions from any of Bank Sohar's branches throughout the Sultanate. This, he said, was possible at Bank Sohar, thanks to the unique IT environment.
By Business Reporter
© Oman Daily Observer 2007
