(20 May 2022 – United Kingdom) The United Kingdom (UK) Electronic Trade Documents Bill is set to significantly improve access to trade finance, especially for English law contracts encompassing the majority of global trade as the UK government moves to accept electronic trade documentation.
Trade documents are those used by importers, exporters and other stakeholders in a trade transaction for verifying the performance of contractual obligations, processing payments, financing transactions, transferring of title of goods, and many other services. Trade documentation includes Bills of exchange, Certificate of Origin, Bills of lading, Delivery orders, Warehouse receipts, Mate’s receipts, Marine insurance policies and Cargo insurance certificates amongst other certification records.
The UK Electronic Trade Documents Bill was included in the British government’s proposed legislative agenda for the 2022/23 parliamentary session as part of the UK Government’s strategy to prioritise the growth and strength of the economy currently suffering from a growing risk of stagflation
“Current regulations do not recognise the possession of electronic documents, and companies are limited by the law from introducing paperless processes in their supply chain. The decision to move forward with this reform as an important step towards further digitalisation of trade” stated Institute of Export and International Trade Director General, Marco Forgione.
“There are multiple advantages to single trade windows, including security, confidence, transparency, increased speed and simplification of processes, all of which reduce risk and therefore costs of finance and insurance” Forgione added.