Tata Steel completed its first paperless import transaction under a Letter of Credit, fully backed by digital processes, the company announced on Friday. The company carried out first digitized import shipment of coal using an Electronic Bill of Lading (eB/L) with full bank integration.
In its efforts towards fully digitised and sustainable global trade, the company used eB/L for its coal import shipment from Queensland, Australia to Dhamra Port in Odisha, India.
The transaction, backed by digital platform provider ICE Digital Trade’s eBL solution, involved coordination between Tata Steel India, ICICI Bank, TS Global Procurement, and Standard Chartered Bank (Singapore).
Electronic Bill of Lading (eB/L) is a digital version of the traditional paper document used in global shipping.
Tata Steel aims to make its supply chain eco-friendly, as a step to fulfil its sustainability objective of achieving Net Zero by 2045.
"This is a big step forward in making our supply chain smarter and more eco-friendly. By embracing eB/L, we are cutting through traditional bottlenecks and setting a new standard for how goods move globally. It reflects our commitment to building a supply chain that is not just efficient and secure, but also environmentally responsible," said Peeyush Gupta, Vice President - TQM, GSP & Supply Chain, Tata Steel.
The digital transaction in imports and exports enables faster access to documents and higher compliance, the company said.
“This successful integration of banks and digital documentation marks a leap in trade finance. It enables faster access to documents, brings efficiency, and ensures higher compliance - everything a modern finance ecosystem needs," said Sandeep Bhattacharya, Vice President - Financial Control & Business Analytics, Tata Steel.
By removing the need for physical courier services and paperwork, the new system significantly speeds up documentation and reduces risks.
The company is taking several measures towards digitisation and environmental sustainability as it executed a blockchain-enabled, paperless trade transaction of steel export to a customer in UAE in 2021. Later in the year in November, the Company executed a blockchain-enabled paperless export order with a metals major in Bangladesh.
Banks play a significant role in such transactions as overseas tech-enabled transactions pave the way for future foreign trade.
“The eB/L solution represents ICICI Bank’s commitment to transform international trade through technology-driven innovation and strategic global partnerships, while adhering to industry-standard compliance. This is also part of our journey from Bank-to- Bank Tech—an evolution from a traditional bank to a tech-led Bank Tech institution," said Anubhuti Sanghai, Head of Transaction Banking, ICICI Bank.
Digitisation of trade finance reduces timelines, eliminates risks and improves transparency in the process.
“The success of this landmark transaction marks a significant milestone in the digitisation of trade finance, significantly reducing timelines, eliminating risks and improving transparency. This achievement underscores our commitment to driving innovation and efficiency in global trade, while delivering greater speed, security and transparency to clients," said Maisie Chong, Global Head, Standard Chartered Bank.
Tata Steel is working on more blockchain-based paperless transactions in geographies like Bangladesh, Europe, and the Middle East covering three different shipment modes - Road, Breakbulk, and Containers.
In its efforts towards fully digitised and sustainable global trade, the company used eB/L for its coal import shipment from Queensland, Australia to Dhamra Port in Odisha, India.
The transaction, backed by digital platform provider ICE Digital Trade’s eBL solution, involved coordination between Tata Steel India, ICICI Bank, TS Global Procurement, and Standard Chartered Bank (Singapore).
Electronic Bill of Lading (eB/L) is a digital version of the traditional paper document used in global shipping.
Tata Steel aims to make its supply chain eco-friendly, as a step to fulfil its sustainability objective of achieving Net Zero by 2045.
"This is a big step forward in making our supply chain smarter and more eco-friendly. By embracing eB/L, we are cutting through traditional bottlenecks and setting a new standard for how goods move globally. It reflects our commitment to building a supply chain that is not just efficient and secure, but also environmentally responsible," said Peeyush Gupta, Vice President - TQM, GSP & Supply Chain, Tata Steel.
The digital transaction in imports and exports enables faster access to documents and higher compliance, the company said.
“This successful integration of banks and digital documentation marks a leap in trade finance. It enables faster access to documents, brings efficiency, and ensures higher compliance - everything a modern finance ecosystem needs," said Sandeep Bhattacharya, Vice President - Financial Control & Business Analytics, Tata Steel.
By removing the need for physical courier services and paperwork, the new system significantly speeds up documentation and reduces risks.
The company is taking several measures towards digitisation and environmental sustainability as it executed a blockchain-enabled, paperless trade transaction of steel export to a customer in UAE in 2021. Later in the year in November, the Company executed a blockchain-enabled paperless export order with a metals major in Bangladesh.
Banks play a significant role in such transactions as overseas tech-enabled transactions pave the way for future foreign trade.
“The eB/L solution represents ICICI Bank’s commitment to transform international trade through technology-driven innovation and strategic global partnerships, while adhering to industry-standard compliance. This is also part of our journey from Bank-to- Bank Tech—an evolution from a traditional bank to a tech-led Bank Tech institution," said Anubhuti Sanghai, Head of Transaction Banking, ICICI Bank.
Digitisation of trade finance reduces timelines, eliminates risks and improves transparency in the process.
“The success of this landmark transaction marks a significant milestone in the digitisation of trade finance, significantly reducing timelines, eliminating risks and improving transparency. This achievement underscores our commitment to driving innovation and efficiency in global trade, while delivering greater speed, security and transparency to clients," said Maisie Chong, Global Head, Standard Chartered Bank.
Tata Steel is working on more blockchain-based paperless transactions in geographies like Bangladesh, Europe, and the Middle East covering three different shipment modes - Road, Breakbulk, and Containers.
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