The blockchain solution will allow much of the document verification to be confirmed digitally; a process that still relies on pen-and-paper

Highlighting the fact that trade documentation is “still a 19th century process”, the Singapore International Chamber of Commerce (SICC) announced yesterday the launch of a blockchain-based platform to facilitate the issuance of electronic certificates of origin.

The solution was developed by vCargo Cloud, an e-logistics provider that is a subsidiary of SGX-listed DeClout, who owns 50.01 per cent of the company.

The goal of the platform is to help companies leverage the services of the chamber with flexibility, transparency and trust — but to do so in a way that sidesteps the typical mountains of paperwork.

One of the problems brought up by Victor Mills, the Chief Executive of SICC, is that churn within the trade industry means a lot of institutional knowledge can be lost with the employees. The result is that people often approach the chamber and essentially drop a pile of documents and say, “here, you deal with this”.

The goal of the platform is to make it a simple process with a low barrier to entry for those in charge of processing the paperwork.

The blockchain will allow instant verification of trade documents while the distributed ledger will prevent fraud, alterations and it improves digital security.

Chua Taik Him, a Senior Advisor for Enterprise Singapore, said the initiative “will strengthen Singapore’s competitiveness as an international trading hub” by connecting these traditional industries with the digital economy.

Speaking about blockchain, he said,

“I hope our companies can take advantage of these opportunities to innovate business models and generate new business opportunities. Singapore as a whole will be in a better position to depend the capability base and strengthen the knowledge foundation of blockchain technology.”

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Certificates of origin are essential documents in the world of international trade because they validate where certain goods were obtained, produced, manufactured and processed.

The system allows for exporter to apply for the certification online by attaching the documents. The SICC will then approve the application and send a digital copy of the paperwork to the blockchain.

At this point, the importer, customs department or bank can use the key to verify the authenticity of the certificate of origin and add a fingerprint to show the document has been processed.

The platform will leverage QR-codes to make the process more efficient. So instead of navigating a massive database of blockchain keys, stakeholders should be able to simply scan the QR-code with their phone to view the desired document.

“Not only do we hope to see this innovation as part of the journey to renew Singapore, we also look forward to seeing the adoption of this solution by authorities and authorised operators worldwide,” said Desmond Tay, the CEO of vCargo Cloud.

While the blockchain solution seems useful, it requires multiple parties to be using the platform. If an importer is is still using a paper-first system, the exporter will need to move off the blockchain to ensure the transaction goes through.

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Mills said the key to ensuring the system on-boards enough firms it make it useful is education, education, education. The SICC is planning on conducting training sessions and it thinks the pricing structure will make it attractive for users.

vCargo Cloud plans to use the Singapore launch to promote the solution globally beginning with Asian nations.

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