The Electronic Trade Documents Bill will make it possible for trade documents to be turned into digital files. Even though it sounds like a small bill, it will have a huge effect. It’s crazy that paper documents are still used in a business that’s worth £1.266 trillion to the UK. This change will have a big way on trade, but it will also show how the UK can be at the forefront of tech-friendly laws.
The Electronic Trade Documents Bill will improve the UK’s international trade, which is already worth more than £1.4 trillion, and cut down on the 28.5 billion paper trade documents that are printed and flown around the world every day.
With this bill, it will be easier, cheaper, faster, and safer for businesses to trade with other countries right away. The main good benefits about the Bill are:
1. Increasing efficiency and lowering costs of trade administration because processing electronic documents is faster and cheaper than paper ones,
2. Making trade safer and more legal by taking advantage of the transparency and traceability of electronic documents.
3. Getting environmental benefits from less paper use and fewer emissions from couriers.
Putting these benefits into numbers, the Digital Container Shipping Association (DCSA) says that if 50% of the container shipping industry switched to electronic bills of lading, the world would save around £3 billion. Most people who took part in a Law Commission survey said they thought transaction costs would go down by at least 5%. According to CargoX, as reported by Trade Finance Global, it can take seven to ten days to transfer a paper trade document, but processing the document electronically can reduce this time down to as little as 20 seconds. When it comes to the environment, the World Economic Forum thinks that this could cut global carbon emissions from logistics by as much as 10 to 12 percent.