The transaction supported an export to a UK importer. By replacing paper documents with electronic records, it demonstrates how digital processing can make international trade more efficient and transparent while providing reliable legal certainty.
The underlying trade transaction related to the export of a conveyor system from Germany to the United Kingdom. The German SME acted as exporter and supplier, while the UK corporate was the importer. The goods were transported by road.
Alexander Pawellek, Global Head of Product Management Trade Finance, Commerzbank, commented: “As one of Europe’s leading trade finance banks, we see this transaction, the first of its kind for Commerzbank, as a significant step in our efforts to digitalise trade finance and a clear sign that digital trade is moving from concept to reality. By enabling the presentation of original digital documents under a letter of credit, we have demonstrated how digital solutions can make international trade faster, more transparent, and more efficient without compromising execution certainty. We see considerable potential to build on this achievement and expand the use of digital trade documentation across global trade corridors, creating tangible value for our clients and accelerating the transformation of global trade.”
All parties utilised the service of Enigio to securely exchange the documents through their digital envelope solution and patented trace:original technology, which enables the transfer of original digital documents via a blockchain-enabled network between corporates and banks.
Surath Sengupta, Head of Transaction Banking at Lloyds, said: “Lloyds continues to be a leader in digital trade documentation and this transaction marks an important milestone in that journey. By completing our first fully digital trade transaction between the UK and Germany, we’ve demonstrated how businesses can move away from paper-based processes and trade more efficiently across borders.
Alongside delivering these transactions for our own clients, we’ve been working with partner banks to identify practical digital trade flows and accelerate adoption across the market. As a result, our digital trade volumes have increased more than fourfold year-on-year. Transactions such as this demonstrate what can be achieved when the international trade ecosystem collaborates to create scalable, interoperable digital trade solutions, helping pave the way for the future of global trade.”
Enigio’s solution is based on internationally recognised standards, including the United Nations Commission on International Trade Law (UNCITRAL), the Model Law on Electronic Transferable Records (MLETR) and the International Chamber of Commerce Digital Standards Initiative (ICC DSI), helping to ensure interoperability and secure communication between all parties involved in international trade. As an open solution, only the issuer of the digital trade document is required to be connected to the Enigio service, facilitating adoption across the trade ecosystem.
Petter Nylander, CEO at Enigio, stated: “What makes this transaction significant is that it demonstrates how digital original trade documents can move securely between different companies and banks as part of an existing letter of credit process. Enigio’s Public Notary Service makes onboarding simple and enables new parties to participate with minimal technical effort. This open and interoperable approach is essential if digital trade is to scale across existing global trade relationships.”
The successful completion of the transaction complied with the International Chamber of Commerce (ICC) Electronic Supplement to the Uniform Customs and Practice for Documentary Credits (eUCP). The eUCP supplements the Uniform Customs and Practice for Documentary Credits (UCP) and provides a framework for presenting electronic records under letters of credit. The transaction also followed the established processes of both banks and was closely overseen throughout to ensure it was completed correctly and securely.
Both Commerzbank and Lloyds are active members of the International Chamber of Commerce (ICC) and contribute to various ICC working groups focused on the digitalisation of trade finance.
