According to the World Trade Organization, worldwide trade has grown twice as fast as gross domestic product since 2000. In 2007, more than US$13 trillion of merchandise was traded across borders, more than double the amount of 2002.

As noted in Nathan & Associate’s Holistic Modernization of the International Trade Transaction Process “this rise in trade volumes has been supported by more than a decade of concerted modernization of trade practices, focused largely on simplifying, automating, and computerizing customs and border processes to facilitate information exchange between customs, businesses, and other government agencies (OGAs) involved in trade. The development and use of “e-customs” solutions reduced time spent complying with customs rules and regulations and thereby cut trade transaction costs. Customs clearance has become faster and more predictable. Since 2005, the worldwide average time required to export goods has been reduced by three days.”

Increasingly, eLegislation supports the modernization of trade practices, with the widespread adoption of eSignature laws and the increasing advent of eCustoms requirements. This trend will continue with a series of eLegislation initiatives currently in the pipeline within the EU and at international level.

Recent Legislation

• Entry Summary Declaration (ENS): Last year, the European Union passed regulations which require electronic transmission of an Entry Summary Declaration (ENS) at least 24 hours before loading cargo on a vessel bound for an EU port or, for short-sea traffic, two hours before entry at its first EU port. The ENS must include information such as the ocean carrier’s EORI number, the container number and the master and house bill of lading numbers. This information allows the customs office of first entry to perform a cargo risk assessment for all shipments, and if risk is identified it is authorized to take prohibitive action, including Do Not Load orders. The ENS requirements came into full enforcement on July 1, 2011. Non-compliance may mean failure to clear customs, delay in cargo release, and/or imposition of penalties. http://ec.europa.eu/ecip/help/faq/index_en.htm

• Exit Summary Declaration (EXS): Similarly, an Exit Summary Declaration (EXS) is required to be filed by the carrier or his representative for all goods brought out of the Customs territory of the EU, regardless of their final destination.

• EMCS – is an EU regulation which requires the transmission of electronic Administrative Documents and Reports of Receipt from 1 January 2011, replacing the use of their paper equivalent.

• REACH - is the European Union Regulation on chemicals and their safe use; one of the obligations under REACH is for parties to distribute safety data sheets (SDSs) to any other party that may come into contact with the substance.

Existing Legislation            

• eSignature Acts - all 25 of the leading trading nations which together represent more than 80% of all the world’s trade have enacted legislation recognising electronic signatures as valid and enforceable
• eUCP – this supplement to the UCP 500 or 600 allows parties to present electronic documents, rather than their paper equivalent, under a documentary credit
• 10+2 Rule – this requires both importers and carriers to submit additional information (beyond that required in an AMS filing) pertaining to cargo to US Customs before a cargo is brought into the United States by vessel

Future Legislation

• Rotterdam Rules – this UN Convention only comes into force 12 months after 20 nations ratify it into national law. The Rules require all participants in a trade to accept electronic documents and electronic transfer of title so long as the carrier and shipper agree to use eDocs