TradeTrust enables interoperable electronic Bills of Lading (eBLs)1 backed Letter of Credit transactions between Singapore and Indian banks and companies, paving the way to digital cross-border trade.
SINGAPORE – 25 AUG 2023
- Singapore and Indian banks and companies successfully kicked-off the first live transaction using the TradeTrust Framework, for a shipment between Singapore and Indian businesses. This was announced by Minister for Trade and Industry Gan Kim Yong at the G20 Trade and Investment Ministerial Meeting in Jaipur, India.
- The live transaction successfully showcased the digitalisation of cross-border trade financing documentation that can be applied across different systems, aimed at improving the speed, efficiency, and accuracy of information required in shipment transactions. This will result in cost savings for companies and enhance access to trade financing. Globally, this is the first shipment to undergo a fully paperless transaction process involving traders, shippers, and banks. This project was implemented in close partnership between government agencies (Ministry of Trade and Industry, the National Institute for Transforming India (NITI) Aayog, Enterprise Singapore, and Infocomm Media Development Authority (IMDA)) and industry partners (DBS, ICICI Bank, Maptrasco, Jindal Stainless, and A.P. Moller-Maersk).
- Minister Gan said, “This TradeTrust project between Singapore and Indian enterprises, banks and a global logistics provider is a big step towards achieving paperless trade, making international trade easier, faster and cheaper, especially for SMEs. The project also demonstrates the real-world applicability of the G20 High-Level Principles on Digitalisation of Trade Documents, particularly Interoperability, Scalability, Data Privacy and Voluntary Sharing of Data.”
- B.V.R. Subrahmanyam, Chief Executive Officer of NITI Aayog said, “This joint project of the two Governments demonstrates the efficacy of using blockchain in place of existing paper-based cross border trade finance. It underlines the importance of addressing governance challenges while adopting new technologies in real-life use cases.”
- Pioneered by the IMDA, TradeTrust is designed to address the challenges of paper-based cross-border trade. It utilises a blockchain-powered technology which ensures singularity and provenance in the transactions, resulting in greater trust, security, and accuracy. TradeTrust is also based on international standards and is thus interoperable, allowing different systems to participate in the framework.2
- Following this first shipment, businesses in Singapore and India keen to execute eBLs in Letter of Credit transactions can reach out to DBS and ICICI Bank. For other trade documents and scenarios, they can approach IMDA (TradeTrust@imda.gov.sg).
About Ministry of Trade and Industry (MTI)
Our vision is for Singapore to be a leading global city with a dynamic economy, world-class and innovative enterprises, a conducive environment for entrepreneurs and enterprises to tap its diverse opportunities and good jobs for all Singaporeans. We aim to promote economic growth and create good jobs, to enable Singaporeans to improve their lives. For more information, please visit www.mti.gov.sg.
About Infocomm Media Development Authority (IMDA)
The Infocomm Media Development Authority (IMDA) leads Singapore’s digital transformation with infocomm media. To do this, IMDA will develop a dynamic digital economy and a cohesive digital society, driven by an exceptional infocomm media (ICM) ecosystem – by developing talent, strengthening business capabilities, and enhancing Singapore's ICM infrastructure. IMDA also regulates the telecommunications and media sectors to safeguard consumer interests while fostering a pro-business environment, and enhances Singapore’s data protection regime through the Personal Data Protection Commission.
For more news and information, visit www.imda.gov.sg or follow IMDA on LinkedIn (@IMDA), Facebook (@IMDAsg) and Instagram (@IMDAsg).
About National Institution for Transforming India (NITI) Aayog
NITI Aayog is Government of India’s premier policymaking think tank. It provides strategic and policy inputs to the Indian government on various developmental issues, including economic growth, social development, infrastructure, and technology.
(Ms) Delia Wu
(Communications and Engagement Division)
Ministry of Trade and Industry
(Mr) Aung Thi Ha
(Communications and Marketing)