What Is the International Chamber of Commerce (ICC)?

What Is the International Chamber of Commerce (ICC)?

Let me explain the International Chamber of Commerce (ICC) directly: it's an international organization that stands up for the interests of individuals and businesses in private enterprise. As the largest and most diverse business organization globally, the ICC represents millions of companies around the world. You'll find it has a network of committees and experts across various business sectors, plus an arbitration tribunal that handles disputes related to business and investments.

Key Takeaways

Here's what you need to know right away: the ICC is the biggest business organization on the planet, with 45 million member companies in over 170 countries. It works to boost international trade and commerce by promoting and protecting open markets for goods and services, along with the free flow of capital. The ICC handles several key functions for businesses, such as creating rules, resolving disputes, advocating policies, and providing training. Its networks of committees and experts cover a full range of business sectors and keep members updated on issues impacting their industries.

Understanding the International Chamber of Commerce (ICC)

As I mentioned, the ICC is one of the largest organizations out there, with a clear goal: to make business work for everyone, every day, everywhere by pushing for open international trade and investment systems that bring peace, prosperity, and opportunity to all. It represents the interests of 45 million companies in more than 170 countries. The ICC focuses on fostering international trade and commerce to promote and protect open markets for goods, services, and the free flow of capital.

You should know that the ICC takes on various responsibilities, including establishing rules, resolving disputes, advocating policies, and offering training. It also fights against commercial crime and corruption to support economic growth, job creation, employment stability, and overall prosperity. Since ICC members and their associates are involved in international business, the organization holds unmatched authority in creating rules for cross-border dealings. These rules are voluntary, but thousands of daily transactions follow them as standard practice in international trade.

Fast Fact

Keep this in mind: the ICC maintains relationships with the United Nations, the World Trade Organization (WTO), and other intergovernmental agencies.

History of the International Chamber of Commerce (ICC)

The ICC was founded in Paris in 1919, right after World War I ended. A group of industrialists, financiers, and traders who called themselves Merchants of Peace set it up to serve global business interests by promoting international investment and trade, and to open up global markets for goods and services.

Just a year later, in 1920, the organization's Commission of Arbitration and ADR—originally the ICC Constitution and Commission on Arbitration—was formed. This acts as the think tank, researching and reporting on legal issues that affect international business and trade. The international secretariat was also established in Paris, and the International Court of Arbitration came in 1923. Court members are appointed by the World Council for three-year terms, and that was the year it heard its first case.

Fast Fact

Note this: the first chair of the chamber was Étienne Clémentel, an early-20th-century French politician.

Governing Bodies of the International Chamber of Commerce (ICC)

There are four main governing bodies in the ICC. The primary one is the World Council, made up of representatives from national committees. The highest officers—the chair and vice-chair—are elected by the World Council every two years.

Next, the executive board sets the strategic direction. Elected by the World Council, it includes 28 business leaders and ex-officio members, with key duties like developing ICC strategies and implementing policies.

The international secretariat serves as the operational arm, handling the development and implementation of the ICC's work program and bringing business views to intergovernmental organizations. It's overseen by the secretary-general, appointed by the World Council.

Finally, the finance committee advises the executive board on all financial matters. It prepares the budget, submits regular reports, reviews financial impacts of ICC activities, and oversees expenses and revenue.

The International Chamber of Commerce's (ICC) Incoterms

Incoterms are rules created by the ICC that set standards for contracts—both international and domestic—related to delivering goods and services. The first set came out in 1936, and the ICC updates them regularly to match changes in international trade practices. The latest revision was in 2020.

There are 11 Incoterms, or international commercial terms, that clarify rights and responsibilities in trade contracts. They apply to various transport methods, including over water. These standards help avoid problems and resolve misunderstandings about costs, insurance, and risks in international trade and delivery.

What Are the Functions of the International Chamber of Commerce?

The ICC is one of the world's largest organizations, representing interests of individuals and businesses in international investment and trade. It covers 45 million companies in over 170 countries. Its three main goals are to establish rules, policies, and arbitration for dispute resolution.

What Are Incoterms?

Incoterms are rules that help buyers and sellers understand their rights and responsibilities in trade contracts, especially for delivering goods and services. They clarify responsibilities for costs and risks in international trade and delivery. Adopted by the ICC in 1936, they're updated regularly to align with evolving trade practices.

What Is a Chamber of Commerce?

A chamber of commerce is an organization that represents member businesses' interests, advocating for them in the community and often led by an elected board or council. These exist at municipal, state, and federal levels, with the ICC being one of the largest globally.

The Bottom Line

Chambers of commerce exist to advocate for and educate businesses in their communities. The ICC, headquartered in Paris, is one of the largest, representing millions of companies in over 170 countries. Its focus is on setting rules and policies for business and investment, and acting as an arbitrator in disputes.