ICC Lobbies for Electronic Trade Finance Rules Revamp
(20 April 2020 – Global) The International Chamber of Commerce (ICC) has called for governments and central banks globally to eradicate rules that inhibit the use of paperless trade in order to reduce the disruption on trade finance transactions.
Due to the impact of the COVID-19 pandemic on global trade volumes, the ICC have recommended government authorities eliminate any reliance of paper-based trade documentation and to implement the UNCITRAL Model Law on Electronic Transferable Records. This will provide banks with the legal framework on a national and international level to accept eDocuments, finance trade transactions more swiftly and release material goods.
“With many banks unable to handle trade finance paper documents in person due to COVID-19, there is a growing risk that the underlying trade in goods could be disrupted” stated ICC Director of Finance and Development, Oliver Paul.
“The ICC and its members are taking unprecedented steps to limit potential disruption to the processing of trade finance transactions - yet, with the use of electronic trade documents in many jurisdictions either prohibited, or their legal status unclear, urgent government intervention is also required” Mr Paul added.
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