Experts at a webinar have underscored the need for resolving the issues and challenges of international trade disputes arising out of Letters of Credit (LC) through use of Alternative Dispute Resolution (ADR) methods in Bangladesh.
Through the webinar, they explained as to how ADR can help resolve disputes between the parties contracting under LC in international trade deals.
They made the observation at the webinar held on virtual platform on Saturday on "Settlement of Letters of Credit Related International Trade Disputes through ADR".
Bangladesh International Arbitration Centre (BIAC), the first registered ADR institution of Bangladesh, and Dhaka Chamber of Commerce and Industry (DCCI), organised the webinar, said a press release.
With ADR institutions, like BIAC in Bangladesh and other institutions existing in the region, the webinar was aimed at suggesting greater transparency on how the ADR processes including arbitration and mediation work and how they can provide relatively inexpensive and quick access to the resolution of disputes arising out of LC, particularly in the developing nations.
President of DCCI Shams Mahmud and Chief Executive Officer BIAC Muhammad A (Rumee) Ali, among others, spoke on the occasion.
Shams Mahmud said that to mitigate the risk profile of businesses institutional ADR processes including arbitration and mediation can be of immense help especially in LC related international trade disputes.
He emphasized the importance of LC in businesses in developing national trade competency.
He lauded BIAC's role as a trend setter and pioneer in bringing businesses, banks, ADR facilitators and the Government agencies together in order to institutionalise best practices of ADR in Bangladesh.
Muhammad A (Rumee) Ali said that BIAC, as the only licensed ADR centre of Bangladesh, has arbitration, mediation and other methods of ADR in their agenda and he emphasised further cooperation with DCCI to help resolve commercial disputes in both domestic and international trade.
He urged upon business leaders, lawyers, mediators and exponents of ADR to come forward and join BIAC's efforts in quick and cost effective dispensation of business disputes for the greater interest of the country.
He stressed the need of provision of an ADR clause in commercial contracts and synchronising LC with Pro Forma Invoice so that interests of banks and parties are well protected.