Provision Of Infrastructure For Trade Digitization
Each transaction will be treated on a case by case basis, but a general scenario is one as detailed below:
TRANSACTION
1. Buyer sees the offer at the transactional site, and agrees to buy from a Seller that is part of the TRADE GATEWAYS Programme
2. Buyer makes the order and the trade invoice is generated by the seller on the TRADE GATEWAYS Platform
3. The parties agree to accept to utilize an Electronic letter of credit. They also agree on the Logistics Company to be utilized who are part of the TRADE GATEWAYS Programme
EXECUTION
The applicant (importer) applies to the issuing bank for opening an electronic letter of credit subject to the latest version of eUCP rules
The issuing bank issues its electronic letter of credit and sends the credit to the sellers bank through the authenticated TRADE GATEWAYS Platform.
The beneficiary (exporter) of the electronic letter of credit receives the authenticated copy of the e-credit through the TRADE GATEWAYS platform.
At the same time the applicant (importer) confirms with the Logistics company, that an electronic bill of lading will be issued instead of a regular paper based bill of lading. This electronic bill of lading along with all other relevant Trade Documentation is issued on the TRADE GATEWAYS platform.
Exporter delivers goods to the logistics company
Warehouse issues a warehouse warrant
The warehouse warrant is digitally signed by the Warehouse
Required Inspections take place
All Trade Documents are Digitally and securely signed by the relevant parties
The certification is Digitally signed by the certifier(s) where relevant
All Digital signatures come from a specified email address provided to users under the TRADE GATEWAYS programme, so that the signatures can be authenticated in a number of ways. Such authentication includes recording and tracking the IP addresses
Once all the Digital Signatures above have been effected, and acknowledged by the relevant parties, this has the effect of concluding the transaction. Confirmation is sent to all parties that the document has been digitally signed by all parties
The transaction is concluded
The beneficiary makes the electronic presentation to the advising bank. Electronic presentation contains electronic documents including digitally signed e-bill of lading/warehouse warrant.
Sellers bank checks the documents. If documents require no correction then the sellers bank make the electronic presentation to the issuing bank.
Issuing bank checks the documents. If documents are found to be complying then issuing bank honors its Electronic letter of credit.
Issuing bank sends e-documents to the applicant.
