Sweden-headquartered fintech Enigio has teamed up with Commerzbank and Siemens to complete a proof-of-concept for a digital trade transaction between Germany and China.
The project entailed transmitting original electronic versions of trade documents, including an electronic bill of lading (eBL), to support the export of goods from Siemens in Germany to an importer in China.
The test transaction also involved an export letter of credit issued by an unnamed Chinese bank, with Commerzbank acting as advising bank. The eBL was issued by Hamburg-based freight forwarder Fr Meyer’s Sohn using Enigio’s trace:original and digital envelope technology.
Enigio says the collaboration reduced the time taken to process documents from around two weeks to less than two hours, and demonstrates “the power of fully digital trade document flows between Germany and China”.
Siemens and Commerzbank “are now exploring how to scale these digital processes across their broader operations and customer networks”, it says.
“For Siemens, the project demonstrates more than just operational efficiency,” says the company’s global head of trade finance, Gerhard Heubeck.
“This successful proof-of-concept is just the beginning, and a step forward in eliminating obstacles in the usage of digital shipping documents under letters of credit.”
Jörg Motel, Commerzbank’s global head of product management trade finance, adds: “As one of the first German banks to have performed a proof-of-concept with a major Chinese bank, we’re excited to explore new opportunities with electronic documents in the evolving landscape of global trade.”
The proof-of-concept also marks the latest collaboration between Enigio and China’s TradeGo, following a project to integrate Enigio’s trace:original technology with TradeGo’s eBL platform last year.
The duo announced in October last year they had completed their first end-to-end digital trade transaction between Europe and China, which involved the export of goods from a Sweden-based paper producer to an importer in Jinan.
Fr Meyer’s Sohn also issued the eBL in that transaction, while Lloyds Bank acted as advising bank.
Enigio said at the time that the collaboration paves the way for “an interoperable digital channel for electronic trade documents” between the two markets.
Enigio director Gunnar Collin says the collaboration with TradeGo “proves that true digital trade doesn’t require everyone to be on the same system – just systems that can talk to each other”.
“In today’s complex and uncertain global landscape, an open, interoperable approach is more important than ever,” he says.
Steven Zhou, executive director at TradeGo, adds: “We are witnessing the creation of a new international trading system in which digitalisation will play a significant role.”
