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A new digital channel for electronic trade documents launched by Enigio and TradeGo will make payments between Europe and China much safer and faster for exporters, importers, and banks.
Transactions between Europe and China using trade finance documents like Letters of Credit, Documentary Collections, or Open Account terms, which used to be paper-based and take as long as two weeks, can now be completed in a day through digital documents. This should make transactions simpler and safer for the end users, facilitating trade between Europe and China.
“This is a breakthrough for exporters and importers across Europe and China,” said Ulf Eggefors, Director of Transport & Logistics at Enigio. “Our digital solution now delivers global coverage and a secure, fast and sustainable network for trading digitally. The days of relying on paper processes and waiting for courier envelopes are behind us.”
The channel was built by leveraging the Digital Container Shipping Association’s (DCSA) electronic bill of lading standards and extending them to other trade finance instruments. The DCSA established electronic bills of lading to reduce complexity and human error in the shipping process, eliminating the need for paper documents to be physically exchanged between buyers, sellers, and shipping companies.
The same will now apply to users of Enigio’s trace:original digitisation solution who are trading with firms in China, effectively creating a Europe-China corridor that will vastly simplify trade between the two economic giants.
Steven Zhou, Director of the Commercial Department at TradeGo, said, “the best part of this collaboration is that users in different regions can conveniently choose the solution provider which suits them, especially for banks, who don’t have to put much effort into accessing multiple platforms.”
Facilitating trade between China and Europe is all the more crucial in the wake of a possible trade war over sanctions on electric vehicles being discussed this month in the European Commission.
China is one of Europe’s most important trading partners, accounting for 20% of all Europe’s imports in 2023, more than any other country. A trade corridor between the two could facilitate closer cooperation, especially encouraging SMEs in both countries to enter the corresponding market.
