Position Paper on Drafting ICC Rules for Supply Chain Finance
Explanation on the ICC’s relation towards supply chain finance drafting of rules in the context of its participation to the Global Supply Chain Finance Forum (GSCFF)
Supply Chain Finance (“SCF”) has increasingly become a key growth area in domestic and cross-border commerce over the past couple of years. It is widely recognized that SCF is one of the key mechanisms in helping to bridge the gap in SME financing of trade.
The Global Supply Chain Finance Forum (GSCFF) recognizes the market demand for ICC SCF Rules. Facilitated by the ICC Banking Commission, the GSCFF set up the ICC Rules Workstream for SCF in 2018. The Workstream focused on reviewing and considering the development of ICC Rules for SCF since then.
After thorough investigation and careful consideration, the GSCFF has decided to issue this Position Paper on the drafting work of ICC Rules for SCF as a whole. While it considers that the conditions for drafting such rules as pre-mature at this stage, the GSCFF will work to promote the progress towards the ICC rulemaking for SCF in the future.
The position paper studies the preconditions for drafting the rules and the preparation work for such drafting project. In the meantime, the ICC will drive the subject forward, and continue to work together with GSCFF and other industry organizations on advocacy and promotion, so as to drive globally broad adoption of standard definitions of SCF techniques and practice, whilst collecting market feedback on the customs and practices to be included in any future ICC rules for SCF.
To further establish the definitions published by the GSCFF, market participants are asked to incorporate the standard definitions into their daily operations and align their products and services accordingly, while retaining their freedom in differentiated products and services in the market.
The GSCFF workstream on ICC Rules for SCF suggests revisiting the matter in more detail at the Spring Meeting of ICC Banking Commission in 2022.
We invite you to share your feedback on this position paper by sending comments to your ICC National Committee. National Committee can then send their feedback to Tomasch.email@example.com.