India, South Korea Launch Digital Trading with Electronic BoL

India and South Korea have started electronically exchanging waybills between their customs authorities, a move that should make doing business easier.

In a bid to make doing business easier, South Korea and India have initiated electronic transfer of bills of lading (BoL) between their respective customs authorities. This development comes amid global efforts to establish a foundation for all documentation related to cross-border trade.

A bill of lading is a legal document that provides evidence of shipment, ownership and contract details. Director General of Foreign Trade (DGFT) of India, Santosh Kumar Sarangi, said that once this system is adopted globally, physical filing of such records will no longer be necessary.

India, South Korea pave the way for e-commerce documentation

At a recent industry event, Sarangi noted that India and South Korea have pioneered this practice of electronic exchange of waybills. South Korea, a major trading partner of India, entered into a comprehensive free trade agreement with India in 2010. India’s exports to South Korea stood at $6.41 billion in 2022-23, while imports stood at $21.13 billion.

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He predicted that the transition from physical to electronic document transmission could be fully implemented within the next 1 to 1.5 years. The initiative is part of a broader effort led by the United Nations Commission on International Trade Law (UNCITRAL) to digitize global trade documentation, in which several countries are participating. UNCITRAL is dedicated to modernizing and harmonizing international trade law.

Startups and digital tools driving real-time trade tracking

Meanwhile, several startups in India are actively developing solutions to facilitate real-time tracking of goods and shipping containers. The DGFT said these containers are now fitted with Radio-Frequency Identification (RFID) tags, enabling continuous monitoring throughout the journey. As technology advances, the adoption of the Internet of Things (IoT) will further improve the ability to track the movement of containers from origin to destination, bringing greater transparency and efficiency to global trade.

In addition to these advances, India has rolled out several initiatives to streamline business processes for exporters and importers. Among them is the recent launch of the Trade Connect e-Platform, a digital hub designed to provide traders with easy access to important information. The platform consolidates data on various aspects of trade, including customs, target markets and details of free trade agreements.