Press Release | Three successful Singapore Shenzhen digital trade trials completed
18 October 2021
Three Successful Digital Cross-Border Trade Trials Completed: Businesses Will Be Able To Benefit from Faster and More Secured Transactions
Trials on Digital Trade To Promote Business Productivity
Businesses between Singapore and Shenzhen can also soon enjoy expeditious cross-border trade financing transactions as the SCI continues to deepen technological cooperation and test policy innovations between both cities.
Enabled by IMDA’s TradeTrust digital utility, banks, shipping lines, buyers, sellers, platform service providers and fintech companies have collaborated on successful technical trials on trade financing using simulated electronic Bills of Lading1 (eBLs). UOB, together with its Shenzhen Branch in China, and their clients have successfully concluded two digital trade financing technical trials. DBS Singapore, DBS China and their client have also conducted a third successful technical trial. Other banks including Bank of China Singapore Branch and Shenzhen Branch, Industrial and Commercial Bank of China Shenzhen Branch and Singapore Branch, and MUFG Bank will also be launching trade financing pilots in the coming months. After the successful technical trials, the banks intend for commercial transactions to follow.
The three successful trials demonstrated how key maritime trade documents like the eBL could be used across different trade financing platforms and jurisdictions. With the digitalisation of the paper-based Bill of Lading, shipping and finance industries along with businesses in Shenzhen and Singapore will enjoy faster transactions (e.g. there would no longer be a need to physically transport or manage hardcopy trade documents, cost and time savings and lowered fraud risks through the use of digital verification systems).
See more information on the successful trade financing trials between Singapore and Shenzhen.
See the full press release on IMDA's official website.
Footnote
1 Bills of Lading are documents which acknowledge receipt of cargo for shipment and also prove ownership of the cargo. An importer will incur additional storage and handling costs if a paper BL arrives at the destination port later than the cargo or suffer losses if the BL has been tampered with.