The International Commercial Terms (Incoterms) will help the federal government to reposition its strategies to attract foreign direct investment into the country, said Industry Minister, Chief Kola Jamodu.

‘’An enlightenment programme of this nature will not only impact positively on the growth of the economy but also help in repositioning and Foreign Direct Investment strategies of the government”, he said while launching of Incoterms 2010 by the International Chamber for Commerce (ICC) Nigeria Chapter.

Incoterms is a set of rules developed by ICC to facilitate the conduct of International trade by providing rules for interpreting the rights and obligations of buyers and sellers under international sales contracts regardless of differences in language and local business practices. The first Incoterms were created in 1938 but due to changes in practice of international trade, ICC updates and amends the Incoterms whenever it is deemed necessary. Amendments and other modifications were carried out in 1953, 1967, 1976, 1980, 1990, 2000.  INCOTERMS 2010 is the product of the latest update by ICC and it is scheduled to take effect from January 1st 2011.

‘’ Launching this global document for the Nigerian business community, will enhance and further entrench international best practices with regards to trade’’, the Minister stated.

The launching was combined with an enlighten seminar  which featured as guest speakers Mr. Vincent O’Brien, First Director, Electronic Business School of Ireland (EBSI) , Mrs. Boma Ozobia, Principal Partner, Sterling Partnership and our Mrs. Omolara Akanji, Former Director, Trade and Exchange Department of the Central Bank of Nigeria.

Chairman ICC Nigeria, Chief Olusegun Osunkeye elaborated on the Incoterms 2010 saying, “The new Incoterms 2010 rules, entering into force on 1 January 2011, are the official ICC rules for the interpretation of trade terms that must be explicitly incorporated into international sales contracts.

Incoterms are recognized globally by courts and other authorities like the United Nations Commission on International Trade Law (UNCITRAL) as the global standard for the interpretation of the most common terms in foreign trade. Their incorporation into international sales contracts reduces the risks of misunderstandings that could lead to legal complications.

‘’ The report of a recent survey of ICC which showed that more than three quarters of the economists polled believed that their government should adopt the Incoterms® 2010 international trading rules into national legislation.

Nearly all agreed that broad global use of common rules and standards facilitated international trade. Support was above 90% in Latin America, Oceania, Asia, Africa and in North America, 77% of experts agreed with incorporating Incoterms® rules into national legislation, while in Europe 85% of experts agreed.