ICC is the institutional representative of 45m+ companies in 100+ countries. Our mission is to make business work for everyone, every day, everywhere.
20 August 2021
Oswald Kuyler, Managing Director
Digital Standards Initiative,
Based in Singapore
DIGITISATION 18 MONTHS IN REVIEW
BENT BUT NOT BROKEN | | DIGITAL ISLANDS HINDERING SCALE |
TRADE AND SUPPLY CHAIN PROVE MORE RESILIENT THAN IMAGINED | | NO LACK OF SOLUTION PROVIDERS BUT INTEROPERABILITY MISSING |
Faster pivot to digital. Great entrepreneurial opportunity. | | No single view of available standards. Open vs closed standards. |
Increase in costs, delays and fraud related events due to more paper bottleneck e.g. in BLs and LOI utilisation. | | 0.1% eBL issuance, after 22 years, Limited investments into training, change management, Adoption |
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LACK OF ENABLING RULES & REGULATIONS |
FRAGMENTATION PREVENTS PAPERLESS TRADE |
Legal uncertainty regarding acceptance of trade documentation. Different requirements across jurisdictions, between businesses and government agencies. |
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BL = Bill of Lading, LOI = Letter of Indemnity, eBL - electronic bill of lading
WHY STANDARDS ARE RELEVANT
Efficiency | Effectiveness | Resilient |
Least amount of cost and friction. | Maximisation of outcome in desired time | Enables operations through disruption |
Internal Organisation (Margin Optimisation)
Standardised Processes
Standardised Data formats and types
Standardised Capabilities
Increased usages of Automation, Reporting and Analytics
HOW?
Rules and Policies within organisation or industry
Public Sector (VAT gap ++)
Private Sector (Trade Finance Gap ++)
Capital investment frameworks
FIVE CRITICAL PATH DELIVERABLES
Opportunity at hand | | Our 2021 Focus points �(Refresh to be announced end of November) |
FINDING STANDARDS IS DIFFICULT No single view of trade processes and standards. | | UNIFICATION OF STANDARDS Release online platform bridging industry and standard setting organisations. |
OUTDATED REGULATION Legal uncertainty regarding acceptance of digital trade documentation | | CHAMPION LEGISLATIVE REFORM Release advocacy packs to enable industry led government partnerships to make the business case for change. Work with intergovernmental organisations to further pursue MLETR adoption.� |
PRIVATE LAW BARRIERS Interoperability challenges in legal title management and liability frameworks� | | INTEROPERABLE RULEBOOKS Draft digital terms and rules for title management and liability procedures. |
TRADE STANDARD ADOPTION GAPS Limited clarity on foundational standards, limited activity to bridge standard gaps. | | GLOBAL TRADE STANDARDS HARMONISATION Release two standard packages focusing on industry requirements. Focus on bill of lading for containers and dry bulk.� |
COSTLY TECHNICAL INTEGRATION Limited standards to simplify blockchain and non blockchain based integration. | | TECHNICAL STANDARDS Advocate for the adoption of standards that enable distributed title management – and solve for singularity and control. |
Industry Advisory Board (10 new members to be announced in January 2022) |
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LEADERS ENABLING OUR FOCUS
Banking Commission Steerco (Final two members announced in October 2021) |
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Private |
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Public |
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EMPOWER ENABLERS