Ellie Horvath
Key Takeaways:
- The United Kingdom has adopted the Electronic Trade Documents Bill (now the Electronic Trade Documents Act), marking a significant step towards streamlining international trade through digitalization.
- The bill eliminates paperwork and introduces secure electronic trade documents, offering quicker turnaround times, reduced costs, and improved security for cross-border transactions.
- Trace Labs, core developers of OriginTrail open-source technology, and BSI, the business improvement and standards company, have collaborated to create an innovative solution for cross-border food transfers.
- The ‘Trusted Bytes’ project, part of The Industrial Strategy Challenge Fund’s ‘Manufacturing Made Smarter Challenge,’ facilitated the development of the Trusted Bytes Data Trust framework, streamlining cross-border processes.
- The solution utilizes the OriginTrail Decentralized Knowledge Graph (DKG) to provide discoverability, ownership, and verifiability to trade documents, backed by blockchain technology.
- The Trusted Trader framework, a part of the solution, transforms supply chain data into discoverable, verifiable, and AI-ready Knowledge Assets, enabling real-time risk assessment for incoming shipments.
About Trace Labs and BSI’s Solution:
In the ever-evolving landscape of international trade, the United Kingdom has taken a significant stride towards modernization by adopting the Electronic Trade Documents Bill (ETDB), now known as the Electronic Trade Documents Act. This landmark legislation seeks to digitize trade documents, replacing cumbersome paperwork with secure electronic documents to facilitate seamless cross-border transactions.
In parallel, Trace Labs, the core developers of OriginTrail open-source technology, have teamed up with BSI, the business improvement and standards company, to pioneer an innovative solution aimed at revolutionizing cross-border food transfers. This solution, born out of the ‘Trusted Bytes’ project, presents a comprehensive and cutting-edge approach to address the complexities involved in international food transfers.
The Electronic Trade Documents Act:
The Electronic Trade Documents Act has been met with great anticipation in the global trade community. By digitizing trade documents and enabling the use of digital signatures and advanced encryption technology, this legislation promises to transform the way international trade is conducted electronically. The benefits are far-reaching, with a focus on streamlining processes, reducing costs, and enhancing security.
“The criteria set out in the bill are perfectly aligned with the logic of OriginTrail Knowledge Assets that can provide discoverability, ownership, and verifiability to any trade document – all backed by blockchain,” remarks Jurij Skornik, Trace Labs’ General Manager.
Pioneering Innovation in Cross-Border Food Transfers:
In response to the growing demands of cross-border food transfers, Trace Labs and BSI have developed an innovative solution to streamline the industry. Leveraging their expertise and cutting-edge technology, the ‘Trusted Bytes’ project aimed to address the complexities associated with international food transfers.
As part of the project, BSI developed the Trusted Bytes Data Trust framework, facilitating the smoother flow of food products into and out of the UK. The framework, designed to make it easier for all parties to source and confirm information about products and ensure compliance, streamlines processes for border-crossing.
This initiative involved combining traditional standards with emerging supply chain standards and innovative technologies like OriginTrail Decentralized Knowledge Graph (DKG). This approach showcases how standards can support future technologies, promoting data sharing and enabling users to verify information provenance across industry stakeholders, government agencies, and regulators for secure international trade.
The Trusted Trader Framework:
A key component of the solution is the Trusted Trader framework, which takes trade compliance, assurance, and risk assessment to new heights. Built on the globally recognized Authorized Economic Operator (AEO) scheme, this framework transforms supply chain data into discoverable, verifiable, and AI-ready Knowledge Assets.
The Trusted Trader framework enables UK customs to assess risk levels associated with incoming shipments in real-time, from departure to arrival on UK soil. By providing real-time risk assessment, this framework has the potential to make customs processes more focused and efficient.
Enhancing Cross-Border Facilitation, Compliance, and Security:
The ‘Trusted Bytes’ project also focused on enabling a trusted data exchange to connect the supply chain with central government and other critical partners. This enhancement aims to improve cross-border facilitation, compliance, and security by infusing trust and transparency into processes.
The framework, developed within Trusted Bytes, is not only reusable but also deployable by government agencies globally. This widespread applicability empowers governments to instill trust and transparency into their cross-border processes.
OriginTrail Decentralized Knowledge Graph:
At the heart of the solution lies the OriginTrail Decentralized Knowledge Graph (DKG), developed by Trace Labs. The DKG provides discoverability, ownership (transferability), and verifiability to trade documents, ensuring the authenticity and integrity of the information they contain.
This pioneering technology, backed by blockchain, turns paper trade documents like CMR and Bill of Lading into Knowledge Assets on the OriginTrail DKG. The incorporation of blockchain technology bolsters the security and trustworthiness of these documents, presenting an easy and trusted way for UK customs to assess shipment risk based on verified trade documents and data.
The Future of Trade Sustainability and AI-Powered Solutions:
With the Electronic Trade Documents Act in place, businesses can now embrace electronic trade documents, paving the way for improved trade sustainability and AI-powered solutions. The collaboration between Trace Labs and BSI to facilitate international trade in the UK sets a strong foundation for the future of cross-border transactions.
“This solution turns paper trade documents such as CMR and Bill of Lading into Knowledge Assets on OriginTrail DKG, giving them ownership (transferability) and verifiability,” states Jurij Skornik. “This provides an easy and trusted way for UK customs to assess the risk of a shipment based on trusted and verifiable trade documents and data. It also sets a strong foundation for AI-powered search of trade data based on OriginTrail trusted knowledge infrastructure, which will be available soon.”
Conclusion:
The adoption of the Electronic Trade Documents Act by the United Kingdom marks a significant advancement in the realm of international trade. By digitizing trade documents and embracing electronic solutions, the UK aims to streamline processes, reduce costs, and enhance security for cross-border transactions.
In parallel, the collaboration between Trace Labs and BSI to develop an innovative solution for cross-border food transfers showcases the power of cutting-edge technology and industry expertise. The ‘Trusted Bytes’ project and the resulting Trusted Bytes Data Trust framework offer a streamlined approach to international food transfers, while the Trusted Trader framework revolutionizes trade compliance and risk assessment.
With the OriginTrail Decentralized Knowledge Graph providing discoverability, ownership, and verifiability to trade documents, the future of cross-border trade is secure, efficient, and powered by AI-ready solutions.
The intersection of the Electronic Trade Documents Act and the groundbreaking solution from Trace Labs and BSI sets a promising trajectory for the future of international trade, ensuring transparency, efficiency, and security in the global market.
