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The United Nations Commission on International Trade Law (UNCITRAL) has endorsed the International Chamber of Commerce (ICC) Uniform Rules for Forfaiting.
The rules are complied in the ICC Publication no. 800 (“URF 800”).
It was officially endorsed by the UNCITRAL in its 50th plenary session held in Vienna recently, according to a press statement of ICC, the World Business Organisation.
Forfaiting is a trade financing technique based on without recourse discounting of an instrument representing an exporter’s receivables payable at a future date.
This evidences a payment claim or a debt obligation of an importer or a bank or a financial institution pursuant to a letter of credit, standby letter of credit, guarantee, aval, bill of exchange or a promissory note created under an export transaction.
The URF 800 is the first ever global set of rules for forfaiting which is a result of three-and-a-half years of joint effort by ICC and the International Trade and Forfaiting Association (ITFA).
The aim of URF 800 is to create a standard set of rules that can be applied within the forfaiting markets worldwide.