First ePresentation under eUCP over Bolero

Tuesday, December 14, 2010

December 2010, London. Bolero has announced the first electronic presentation (using the Bolero platform) of documents required under a documentary credit (letter of credit) issued subject to eUCP. The beneficiary of the documentary credit was a major Australian mining company, who is already using the Bolero multi-bank trade finance service, and who has taken a lead in driving adoption of fully electronic and dematerialised collaboration with its bank and supply chain customers.  The applicant was Tae Kyung Ind. Co. Ltd., the issuing bank was Korea Exchange Bank (KEB) and the advising and negotiating bank was The Royal Bank of Scotland (RBS). The documents in the ePresentation included the commercial invoice, packing list, certificate of weight, certificate of analysis as well as the bill of lading and insurance certificate. The electronic documents sent via the Bolero platform have been received by the issuing bank and have been promptly honoured and paid by the issuing bank.
 
The International Chamber of Commerce (ICC) has provided a standardised paperless process for the Letter of Credit known as eUCP which complements the widely used UCP600 standards. Although eUCP has been available for a number of years it is only recently that adoption of an open standardised solution incorporating the necessary legal framework has enabled leading corporates and their banks to implement this standard in practice.
 
The broader adoption of eUCP simplifies further the traditional documentary credit process, streamlining the presentation of documents and providing the opportunity for significant reduction in time to cash.
 
“The Bolero technology and legal rulebook were developed in conjunction with industry leaders exactly to enable a fully dematerialised process such as eUCP” said Luc Volckaert, CTO of Bolero. “The unique legal infrastructure of Bolero ensures that any documents presented as electronic documents over the Bolero platform preserve the same legal meaning as the paper documents they replace” said Paul Mallon, Director of Legal at Bolero and architect of the Bolero legal Rulebook. “And, of course, this also applies to documents of title such as the bill of lading”.
 
Anand Pande, Regional Head of Products at RBS in Singapore says “RBS is delighted to have played a pivotal role in making eUCP a reality for this large Exporter. This is a significant transaction for the industry, especially in Asia, where there are frequent delays and inefficiencies in the traditional Letter of Credit process due to the region’s large geographical area.
 
Straight through document presentation is going to be the way forward in international trade, as it can help to reduce bottlenecks, increase payment certainty and reduce the time to payment. As a leading transaction bank in Asia and globally, RBS is committed to continue investing in electronic Trade Capabilities to help our clients move onto the electronic platform and improve their supply chain efficiencies.”

We were very interested to assist in this initial ePresentation on behalf of our Korean Customer” says Shin Won Michael Kang, Senior Manager, Trade & Services, at KEB in Seoul. “Both RBS and KEB are already providing live Bolero services in support of multi-bank letter of credit transactions, and this provides an obvious extension of value from the banking community to its customers, utilising a proven technology and legal infrastructure.”

The ePresentation was made using standard Bolero service functionality and allowed the major exporter to send as a single secure message the ePresentation including documents to RBS, initially for pre-checking and then the following day as a formal ePresentation. The documents were then forwarded, also over Bolero, to KEB for approval and payment.  

“Following this initial transaction, we can now be sure that the Bolero platform will enable us to operate our importing process most efficiently and promptly. We are especially very proud that we are the first Korea company in this area to use the Bolero platform under eUCP. We expect the Bolero service will soon become the most widely used platform in the world and we are certainly willing to use it further.” says Mattie Suh, Deputy General Manager, Sales Department, at Tae Kyung Ind. Co. Ltd.

“We are very excited about the leadership taken by this large Exporter, its customer, Tae Kyung Ind. Co. Ltd., and the two partner banks, RBS and KEB, in proving the capability of true electronic presentation and the eUCP process.”, said Arthur Vonchek, CEO of Bolero. “There has been growing interest for some while from both corporate and bank communities to be able to support an efficient, but effective electronic presentation capability, which clearly Bolero is uniquely positioned to support.”

Bolero provides comprehensive Trade Finance applications delivered as web-based SaaS (software as a service) solutions enabling speedy adoption, minimal infrastructure costs and flexible use. Underlying these applications is the unique Bolero electronic multi-banking channel solution which ensures security, legal certainty, non-repudiation and document originality. All Bolero services are deployed for effortless upgrade to full multi-bank use for corporate customers, while at the same time providing a single multi-corporate electronic channel for each bank. Bolero prevents both communities from needing to support multiple bank and/or corporate specific processes, interfaces and data formats, clearly driving standardisation in this space.

About Bolero:


Founded in 1998, with significant backing from the bank community and from the global logistics industry, Bolero was created as a neutral, trusted third party to develop an open and legally certain platform to deliver paperless trading between buyers, sellers, financial institutions and logistics service providers anywhere in the world, delivering transaction visibility, predictability, speed, accuracy and security.

Today Bolero brings Corporates, Commodity Traders and their Banks together to share the benefits of collaborative Trade Finance, providing an open, neutral and secure multi-party channel designed specifically for the fully electronic communication of trade and trade finance documents and related messages. In addition Bolero delivers powerful collaborative Trade Finance solutions delivered as a global hosted service reducing the cost of deployment and substantially reducing the time to benefit.

Corporates, Commodity Traders and their partner Banks are rapidly deploying Bolero solutions delivering significant reductions in cost and working capital, increased visibility and improvements in operating efficiency. For more information, please visit www.bolero.net




For more information, please contact:

Bite Communications – for Bolero
Tel: + 44 (0) 20 8741 1123
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