Get your goods into the destination country:Understanding electronic trade documents

Electronic trade documents (ETDs) are digital versions of traditional paper-based trade documents, which are transmitted and verified using technologies like encryption and digital signatures.

Instead of physically exchanging paper trade documents (such as bills of lading or certificates of origin), ETD equivalents can be securely shared and legally recognised for use in international trade transactions.

In the UK the use of ETDs is enabled by the Electronic Trade Documents Act 2023, which gives them the same legal status as paper versions.

Electronic trade documents are also often described as 'trade digitalisation', 'tradetech' and 'paperless trade'.

Video produced for the UK government by LogChain

Why make the switch?

Switching to ETDs has the potential to save a significant amount of time and cost in international trading operations. Research into this area reported:

• 80% reduction in border waiting times
• 30% savings in operational costs
• funds were accessed 7 days sooner – improving cashflow

And a trial of digitalised shipments from the UK to Southeast Asia found:

• 40% reduction in overall trade processing times
• 67% increase in staff productivity, as less time was taken up by document administration
• 91% less email traffic, as transactions were streamlined, cutting down on back-and-forth communication

How they work

ETDs simplify and streamline the trade process. As a demonstration, let’s look at one type of document (bill of lading) and compare the paper and digitalised processes.

Here’s a sample scenario: after an exporter books cargo space, provides shipment details and the goods are loaded onto a ship...

Paper process

1. ...paper originals of a bill of lading (B/L) are printed and signed – typically there are 3 originals.
2. One original is couriered to the importer, another may go to the exporter's bank or accompany the goods, and the third is kept by the exporter.
3. The importer presents their original B/L to claim the goods at the destination port.

This process can take days or even weeks, depending on courier times and document handling.

Digitalised process

1. ...one electronic bill of lading (eBL) is issued and digitally signed on a secure platform.
2. The eBL is transferred electronically between parties (for example: from shipper to exporter to importer), with each transfer securely recorded.
3. The importer presents their eBL digitally, and the shipper verifies it before releasing the goods to the importer at the destination port.

This process removes the courier step, reduces the risk of document loss or fraud, and therefore can reduce weeks of exchanging paperwork to minutes of secure digital transferral.

What documents can be replaced with digital versions?

There’s a wide range of documents that now have digital equivalents. As well as eBLs, e-bills of exchange and e-promissory notes are two other frequently digitalised documents.

For a comprehensive list of documents, see the Cross-Border Paperless Trade Database at the digitalize trade.org website, which is a joint project of the UN and the International Chamber of Commerce (ICC).

Check with your overseas trading partners

If you’re a UK business exporting goods to another country or importing goods into the UK, it’s crucial you check with counterparts in the countries of destination or origin to ensure they can receive, process, and legally recognise ETDs. Before adopting ETDs, you should also liaise with authorities in the relevant origin, transit and destination countries to make sure there is legal and regulatory compliance across all stages of the supply chain.

In some instances, it may still be necessary or advisable to use certain documents in paper form. For instance, when exporting to or through a country that doesn’t have a legal framework to recognise electronic equivalents for trade documents.

As an initial indication, you can check a country's status of adoption or alignment with the Model Law on Electronic Records (MLETR) on a tracker at digitalizetrade.org. MLETR is a set of legal guidelines created by the UN Commission on International Trade Law to help countries recognise and use ETDs.

Finding an ETD solution provider

There are a range of companies and organisations to choose from that offer specialised services or technologies to support trade digitalisation. They may offer a variety of services, such as facilitating eBLs, e-bills of exchange and e-promissory notes.

You can discuss with a solution provider which commercial trade documents you wish to use in electronic form.

You can also search for solution providers online or browse the websites of industry organisations that have published guidance and research around ETDs. Examples include:

• The International Centre for Digital Trade and Innovation – an industry-led initiative, has a downloadable directory of providers on the ‘getting started’ section of its website
• The Digital Container Shipping Association – whose website has a page on eBLs and a short list of providers at the bottom
• Open eBL – a non-profit initiative aiming to establish open-source, standards-based eBL solutions, lists two providers, BlueX and Avarc, as founding sponsors.

Sign up for training

Our UK Export Academy has partnered with the ICC to provide free webinars where you can learn more about the benefits of digitalising your trade supply chains and what’s involved. See the ‘Learn more with free training’ section on this page.

The Chartered Institute of Export and International Trade runs paid-for webinars on trade digitalisation on demand. These ‘101’ sessions cover the documents used in international trade, their digital equivalents, the benefits they bring to businesses and case studies with ETDs in use. Check for upcoming sessions on the Institute’s website.

Ask the export support team a question

If you’ve got a query about ETDs and can't find an answer, you can get in touch with our export support team. The team aims to respond in 3 working days.

Guidance and learning more about ETD standards

Industry bodies have developed a range of standards and guidance to help businesses start introducing ETDs into their supply chain.

Standards Toolkit for Cross-border Paperless Trade

A guide has been produced by the ICC’s Digital Standards Initiative, in partnership with World Trade Organization. Find out more about the guide and download a copy from the ICC’s website.

The Complete Guides to eBL

The Future of International Trade (FIT) Alliance have developed a series of guides to help different parts of the supply chain adopt eBLs. FIT is an ‘alliance of alliances’ made up of associations representing shipping lines, digital standards, freight forwarding, business standards and rules, and banking. Find out more about the guides and download them from the FIT Alliance’s website.

The ITFA Digital Negotiable Instruments Initiative

The International Trade and Forfaiting Association’s guide on switching to digital trade documents includes information on using secure technology like cryptographic keys and distributed ledgers for better security and tracking. Download the guide from the ITFA’s website.