New Digital Channel for Trade Documents between Europe and China Cuts Transaction Time from Weeks to Hours

   In a landmark collaboration, TradeGo and Enigio have developed an interoperable digital channel for electronic trade documents, that will facilitate trade between China and Europe.

   This connected digital channel streamlines the entire process for electronic trade documents for all stakeholders, including logistics providers, exporters, importers and their banks.  Whether using Letters of Credit, Documentary Collections or Open Account terms, this enables transactions that previously took up to two weeks to be completed in just one business day.

   TradeGo and Enigio have built an integration leveraging Digital Container Shipping Association’s (DCSA) electronic bill of lading (eB/L) standards. This means that users of TradeGo’s TradeDocs in China, or elsewhere, can now digitally transact with users of Enigio’s trace:original in Europe.

   A real-world example of this success was demonstrated when global freight forwarder and carrier, Fr. Meyer’s Sohn Seaways, issued an electronic bill of lading, under English law, to a Sweden-based paper and pulp producer. This bill of lading, together with other trade documents, was then electronically presented to one of the UK’s leading banks, who was the advising bank under a Letter of Credit issued by Bank of China, and subject to the ICC’s e-rules for Documentary Credits – the eUCP. The advising bank then transferred the eB/L and supporting documentation to the issuing bank, who then transferred the documents electronically to the importer, a wood pulp importer in Jinan, China. To complete the transaction, the eB/L was surrendered by FMS Qingdao.

   This demonstrates that all the pieces needed to transact digitally are now in place, including the UNCITRAL Model Law for Electronic Transferable Records (“MLETR “) legal framework, ICC’s eUCP and, moreover, the standards and technology of interoperability used by TradeGo’s TradeDocs and Enigio’s trace:original in this case.

   Steven Zhou, Director, Commercial Dept., at TradeGo said “the best part of this collaboration is that users in different regions can conveniently choose the solution provider which suits them, especially for banks, who don’t have to put much effort into accessing multiple platforms. Solution providers can focus their efforts on serving the markets around them, thereby contributing to global trade digitalization as a whole." 

   “This is a breakthrough for exporters and importers across Europe and China”, said Ulf Eggefors, Director, Transport & Logistics, at Enigio. “Our digital solution now delivers global coverage and a secure, fast and sustainable network for trading digitally. What is most exciting is the ease of use. The days of relying on paper processes and waiting for courier envelopes are behind us. “

   Heiko Voigt, CEO of Fr.Meyer’s Sohn, echoed the sentiment, saying, “We are extremely happy and proud to successfully digitalise the first LC based shipment from Europe to China. This is a great milestone on our path to lead trade digitalisation. Thanks to all involved partners and colleagues on this project.”