Pages

Ads 468x60px

Thursday, April 5, 2012

Global Commodity Trade & Shipping? its Shari'ah Standard...

....................................................

1. The Commodity trading or Barter trading is generally allowed in Shari'ah as enshrined in the Holy Qur'an: " ... Allah (swt) permitted trade and traffic, but prohibited Usury..." (2:275).

2. A Shipping arrangement & services affecting global commodity trade or barter trade is a form of cooperation with an intention of mutual benefit among the seller, buyer, trader, charter party, charterer & the ship owner. Hence, such a cooperation is justified by the Qur'anic principles "... help each other among you in righteousness & piety, but do not cooperate in sin and rancor..." (5:2).

3. In Practice, among the Shari'ah required Criteria applicable in the contemporary global commodity trade or barter trade & shipping are as follows:

* Commodities shall be recognized by the Shari'ah Principles (ie. alcohol, pork, stolen goods etc are not recognized as the valid commodity under Shari'ah).

* Ownership and duly consumption shall be secured only by way of mutual transaction / mutual consent.

* Transparency (disclosure) in all aspects of the transaction of any commodity shall be exist.

* Uncertainty in any component of a commodity deal is not acceptable.

* For the purpose of avoiding any future misunderstanding, any commodity deal it is advisable to be closed with relevant documentations save retail transactions, which is an option.

* Credit sale is allowed, but the payment shall be free from Usury (Riba).

* Issuance of LOD, LOR, LOI, SCO, FCO, ICPO, BCL, BC, SPA, NCNDA, IMFPA and the MT 799, MT 705, MT 760, MT103, BG, LC, DLC, RDLC, SBLC without Usury (Riba), TT, SWIFT & COD are all allowed provided that none of the documents or instruments or mechanisms adapted in any deal shall involve any clause or requirement, which is directly or indirectly contrary to the Spirit, ethics, public interest or the Principles of Shari'ah per se.

* Any commodity deal with CIF, CNF, FOB, Contractual, SPOT, Barter trading or traditional exchange are allowed provided that none of the aspects of the deal directly or indirectly contrary to the Spirit, ethics or the Principles of Shari'ah per se.

* Any commodity deal with bartering is acceptable provided that none of the aspects of the deal directly or indirectly contrary to the Spirit, ethics or the Principles of Shari'ah per se.

* For inspection of the agreed commodity, the procedures through SGS, CIQ or other mechanism are allowed provided that, no unfairness clause shall be adapted in those procedures nor shall use those procedures to find an excuse to default others.

* Transneft account, BL, Q88, other shipping or loading or unloading documents are also allowed provided that none of the aspects of the documents directly or indirectly contrary to the Spirit, ethics or the Principles of Shari'ah per se.

To conclude, any commodity deal & shipping services, shall be coupled with total holistic approach with standard ethics, practical mechanisms adapted and the good intention with mutual cooperation, care and concern while avoiding any form of unfair gain.

Furthermore, in any commodity deal, the gross income shall be subject to the settlement of the required standard ZAKAT.

No comments:

Post a Comment