SINGAPORE: Digital Cross-Border Trade Documents Approved for Use

Singapore’s parliament has passed the Electronic Transactions (Amendment) Act 2021, authorising the use of digitised cross-border trade documents in international shipping transactions. 

At present, most maritime trade transactions require physical documents as evidence for the contract of carriage, receipt and ownership of goods. Under the new law, however, digital versions of documentation, such as bills of lading, bills of exchange and promissory notes, are to be acceptable, a development said to save both time and money (up to US$4 billion) while also improving security. 

The adoption of the new law also aligns Singapore with the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Transferable Records, an internationally harmonised legal framework for electronic records, as well as the requirement to ensure the secure use of electronic documentation. To date, only Bahrain has adopted the UNCITRAL Model Law, making it unlikely that the new law will have an immediate impact on trading procedures. Singapore’s adoption, however, is likely to encourage uses by other states.