Legality Guide
Previously, usage of electronic versions of bills of lading faced difficulties due to technological and legal challenges in establishing the original document and its rightful owner. TradeTrust is designed to facilitate systems to achieve the requirements set out in the UNCITRAL Model Law on Electronic Transferable Records (MLETR) to address these difficulties.
Instead of relying wholly on contract law, your TradeTrust-enabled electronic documents can be supported by statutory law in compliant jurisdictions.
When using these electronic documents across MLETR-aligned and/or non-MLETR-aligned jurisdictions, it is recommended to expressly choose a governing law and jurisdiction provision for the documents with a MLETR-compliant jurisdiction.
Using an example of a shipment from a non-MLETR-compliant jurisdiction like China to Singapore: As long as the TradeTrust-enabled electronic Bill of Lading (eBL) issued by the carrier is governed by a MLETR-compliant jurisdiction such as Singapore, that eBL will most likely be considered compliant to the MLETR as applied under Singapore law, and be treated as equivalent to a paper bill of lading. That is the same position with regards to express choice of law and jurisdiction as current law.
Some other MLETR-compliant jurisdictions include the UK; New York and Delaware in the US; the Abu Dhabi Global Market in the United Arab Emirates, and more.
IMDA engaged Stephenson Harwood LLP (in alliance with Virtus Law LLP), with input on US law aspects from Blank Rome LLP, to develop a TradeTrust Legality Guide. In it you will find:
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How TradeTrust addresses legal and technical issues that have prevented eBLs from being widely used in global trade
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How TradeTrust-enabled eBLs work under the MLETR and legal systems in Singapore, the UK and the US
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Advice on how TradeTrust eBLs can work between MLETR and non-MLETR countries/territories
Download A legal and practical analysis of TradeTrust-enabled eBLs and their use in global trade.
Model Law on Electronic Transferable Records
In 2017, the United Nations Commission on International Trade Law (UNCITRAL) published the Model Law on Electronic Transferable Records (MLETR). This law harmonises the recognition of electronic transferable records (ETRs) across borders.
You may refer to the list of countries and territories whose legislation has been influenced by the MLETR and the principles on which it is based. It is recommended that professional advice be sought on the choice of governing law in regards to ETRs.
The adoption of TradeTrust would allow you to easily create and manage MLETR-compliant ETRs that satisfy relevant statutory laws, providing greater certainty to businesses and removing the barrier to end-to-end digital trade.
Singapore's Electronic Transactions Act
In March 2021, the Electronic Transactions Act (ETA) was amended to align Singapore’s legal and regulatory infrastructure with international trade law and the latest technological advancements. The amendment adopted the MLETR published by the United Nations Commission on International Trade Law for the creation and use of ETRs. ETA gives electronically concluded contracts the same status as written contracts through a set of legal provisions.
ETA allows ETRs to be recognised as functional equivalents to their paper versions in Singapore.