Technical assistance and capacity building are important for developing countries to support their full adoption of electronic bills of lading (eBLs), the International Trade Centre (ITC) said.
In its paper “Expediting Trade Through Electronic Bills of Lading”, ITC said that EBLs could save billions of dollars in direct costs and unlocks significant global trade growth but their use remains low.
The paper cited earlier industry projections suggesting that full eBL adoption could yield US$6.5 billion in direct cost savings and unlock US$30 billion to US$40 billion in global trade by streamlining processes and reducing delays.
The use of eBLs also improves operational efficiency while environmental benefits are equally compelling. Its adoption also mitigates critical vulnerabilities in traditional systems through enhanced security via digital signatures, encryption and audit trails, reducing risks of forgery, loss and tampering inherent in paper documents, it said.
“Despite many benefits attached to eBLs, their adoption remains low due to several challenges that need to be addressed. These include insufficient legal recognition and enforceability; lack of standardization and interoperability, authentication and data security; limited awareness and knowledge among businesses; and inadequate infrastructure and digital skills,” the paper said.
For eBLs to fully replicate the functions of their physical format, especially as a document of title, it said, their use must be recognized as such under the applicable laws of the relevant jurisdictions.
“A supportive policy environment is essential for eBLs to be adopted widely and successfully. Domestic requirements and legal foundations must be considered when adopting (United Nations Commission on International Trade Law’s [UNCITRAL]) MLETR (Model Law on Electronic Transferable Records),” it added.
The paper said numerous countries had adopted MLETR-compatible laws by 2024. The Philippines, Canada, Colombia and Germany based their laws on UNCITRAL texts.
A statute-based approach that governs eBL implementation, MLETR provides a legal framework for countries to incorporate into their domestic legislation a mechanism to recognize electronic transferable records.
Conversely, the contractual approach relies on agreements between parties using private platforms. While pragmatic, this method lacks universal recognition, binding only consenting parties, it said.
“While not prerequisites, having domestic legal and regulatory instruments — such as those for e-signatures, e-transactions, data protection and cybersecurity — can enhance the certainty and security of eBLs,” the paper said.
“The regulatory framework should be technology-neutral, allow for interoperable solutions, facilitate data submission to national trade windows and align with strategies for resilient cross-border supply chains, integrated with broader frameworks for international trade and trade financing,” it added.
The paper further said technical assistance and capacity building are also important for developing countries to support greater adoption of eBLs.
They can undertake regulatory assessments, such as UNCITRAL legal framework readiness assessment, to help governments and policymakers review existing legislation, identify gaps, and assess their needs for domestic reforms for the adoption of eBLs, it said.
Such initiatives could also include conducting private–public consultations to identify bottlenecks and formulate recommendations for regulatory reforms, providing policy advisory services on the review or drafting of domestic legislation to adopt MLETR-compliant legal texts, and encouraging collaboration on enhancing interconnection and interoperability of the platforms among the private sector players, it added.
