Uniform Rules for Forfeiting (Journal of International Chamber of Commerce, No. 800)

Noticeable increments in international trade, necessitates introducing more and new instruments for Trade Finance. International Chamber of Commerce (ICC) and its banking commission as the largest private section organization and rule maker for international trade and banking, considered to regulate and introduce new rules in this respect. ICC aim is to promote peace through trade. Hence rule making is a way to coordinate and organize trade and business advancement. Preparing, approving and introducing the rules by the representative of more than 130 countries resolve such rules in unified text and language for all users around the globe. One of the latest products of ICC/ Banking commission is the “Uniform Rules for Forfeiting”. Forfeiting facilitates the provision for financing the business activities of international trade community. It has the ability to make instruments that evidence payment claims liquid. By making payment claims easier totransfer, forfeiting enables the exporters and importers to use it as more than just a means of obtaining payment for goods or services delivered: It can be used to provide finance. This critical role motivated ICC to involve itself in regulating this area .The result is the first standard set of rules for forfeiting transactions. URF deals only with the transfer of a payment claim without changing it. During the preparation of the URF, Iran banking committee and its members constantly studied numerous drafts and affected necessary comments. Then the rules could be used on Islamic banking as well. Iran monetary authority, Central Bank of Islamic Republic of Iran, issued several circulars for using this instrument as “Kharide Dein”. Then it seems there is no obstacle to use and benefit from the rules that ICC banking commission offered to the world.