India and South Korea Begin Digital Trade with Electronic Bill of Lading

September 20, 2024 Posted by India Briefing Written by Archana Rao Reading Time: 2 minutes

India and South Korea have begun electronically sharing the bill of lading between their customs authorities, which is expected to enhance the ease of doing business.

In an effort to facilitate ease of doing business, South Korea and India have initiated the electronic transfer of bill of lading (BoL) between their respective customs authorities. This development coincides with global efforts to establish the foundation for all documentation related to cross-border trade.

The bill of lading serves as a legal document providing proof of shipment, ownership, and contract details. India’s Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi has said that once this system is adopted globally, physical submission of such records will no longer be necessary.

India-South Korea pave the way for e-trade documentation

At an industry event held recently, Sarangi noted that India and South Korea have initiated this practice of electronic bill of lading exchange. South Korea, a significant trade partner of India, entered into a comprehensive free trade agreement with India in 2010. In 2022-23, India’s exports to South Korea amounted to US$6.41 billion, while imports reached US$21.13 billion.

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He anticipated that the transition from physical to electronic document submission might be fully implemented within the next 1 to 1.5 years. This initiative is part of a broader effort led by the United Nations Commission on International Trade Law (UNCITRAL) to digitize global trade documentation, with several countries participating in the process. UNCITRAL is dedicated to modernizing and harmonizing international trade law.

Startups and digital tools driving real-time trade tracking

Meanwhile, several startups in India are actively developing solutions to facilitate the real-time tracking of goods and shipping containers. DGFT has stated that these containers are now equipped with RFID (Radio-Frequency Identification) tags, allowing for continuous monitoring throughout their journey. As technology continues to evolve, the adoption of the Internet of Things (IoT) will further improve the ability to track container movements from the point of origin to their final destination, ensuring greater transparency and efficiency in global trade.

In addition to these advancements, India has rolled out several initiatives aimed at streamlining business processes for exporters and importers. Among these is the recent launch of the Trade Connect e-Platform, a digital hub designed to provide traders with easy access to vital information. This platform consolidates data on various aspects of trade, including customs duties, target markets, and details on free trade agreements.

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