Bangladeshi firms should settle international letter of credit (L/C) disputes by using alternative dispute resolution (ADR) methods, especially amid the ongoing coronavirus pandemic, according to the president of the Dhaka Chamber of Commerce and Industry (DCCI).

Shams Mahmud also emphasises the key role L/Cs play in boosting the country's ability to compete in global markets.

Cost and time savings

"To mitigate the risk for businesses, ADR processes could be of immense help, particularly for L/C related international trade disputes," Mahmud told a webinar on the settlement of L/C disputes.

The webinar was jointly organised by the DCCI and Bangladesh International Arbitration Centre (BIAC) and aimed to inform participants how ADR processes could be used to inexpensively settle disputes in a relatively short time compared with international dispute mechanisms, particularly in developing nations.

Synchronised L/Cs

CEO of BIAC, Muhammad Ali, meanwhile urged business leaders, lawyers, mediators and ADR advocates to join the arbitration centre's efforts to find quick and cost-effective systems for dispute resolution.

He also called for the provision of an ADR clause in commercial contracts and the synchronisation of L/Cs with pro-forma invoices so that all parties' interests are protected in a transaction.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.