DBS, in partnership with commodities trader Maptrasco, announced the completion of the first “live” transaction of electronic Bills of Lading (eBL) for shipments between Singapore and India today. The transaction was implemented under the TradeTrust framework, an initiative by the Infocomm Media Development Authority (IMDA) and supported by Enterprise Singapore.
With this first shipment, businesses across Singapore and India can participate in the TradeTrust network via their respective choice of TradeTrust-enabled platforms to enable the digital trade finance of live shipments of goods between the two countries. Companies keen on executing eBLs in digital Letter of Credit transactions can reach out to DBS.
The project leverages the United Nation’s Model Law for Electronic Transferable Records and aims to drive cross-border document and title exchanges. The successful transaction ushers in a new chapter of more efficient, and interoperable digital bills of lading and is a key milestone in the digital transformation of trade financing.
Bills of lading are essential documents in shipping and logistics, representing legal proof ownership of goods in transit, as well as receipt of goods. Globally, only about 1.2% of bills of lading are issued electronically due to limitations in platforms that are not interoperable or use differing rulebooks and standards, which makes scalability challenging.
Lim Soon Chong, Group Head of Global Transaction Services, DBS, said: “The successful live transaction between Singapore and India is a first step towards a truly digital trade corridor between the two nations. DBS is proud to be able to partner Maptrasco to deliver this solution that makes use of IMDA’s TradeTrust framework and look forward to commercialising this solution at scale across the region and beyond.”
Pawan Khaitan, Founder and Chairman of Khaitan International Pte Ltd and Maptrasco, said: “The implementation of electronic bills of lading, in partnership with DBS, has helped to improve efficiency, reduce operating costs, and significantly speed up transaction times. We believe that digital solutions will be key to help bring in new and expanded business opportunities for Maptrasco.”