Electronic Transactions Act (ETA)
Enabling digitalisation of trade documents: convenience & savings for businesses
What is ETA?
The Electronic Transactions Act (ETA) facilitates the use of e-commerce and e-transactions by giving e-contracts and e-signatures the same status as written contracts and signatures
Recent ETA amendments enable the creation and use of Electronic Transferable Records (ETRs), such as electrotonic Bills of Lading (eBLs)
What Is The Bill of Lading?
A Bill of Lading is a transport document and a document of title over goods in transit, it is also a key document for international trade
Seller engages Carrier to deliver cargo and will receive a Bill of Lading (BL)
Seller releases BL to Buyer upon payment
Buyer can only collect the goods when they produce the original BL
Possession of the original BL is of crucial importance. Previously, usage of electronic versions of BLs had been difficult due to technological and legal challenges in establishing what is the "original document" and "who possesses it"
Why Do We Need eBLs?
Faster Processing
Lowered Fraud Risks
Cost Saving
Faster Processing
No additional costs to hold cargo as goods are less likely to arrive at their port of destination before document processing is complete
US$4 billion estimated savings a year if 50% of the container shipping industry adopts eBLs, according to Digital Container Shipping Association
Trade financing banks can obtain collateral security over the eBL, allowing them to obtain regulatory capital relief and pass on cost savings to clients
The amended ETA supports and complements the government’s trade digitalization initiatives.
Europe
IMDA & MPA‘s collaboration with Port of Rotterdam on eBL through TradeTrust
Singapore
TradeTrust
comprises set of globally-accepted standards and frameworks
enables trusted interoperability of digital trade documents
provides proof of authenticity and provenance of documents and offers title transfer through open-source software
China
SG-Shenzhen Smart City Initiative to explore cross-border trade and trade financing using eBLs and Letters of Credit
Australia
Trial of digital verification methods for electronic Certificates of Origin between border agencies and businesses