essDOCS enables first integrated paperless Letter of Credit and eDocs transaction in Steel Industry, in first use of CargoDocs for Indian exports
essDOCS recently enabled the first ever integrated paperless letter of credit (LC) and eDocs transaction in the steel industry – marking the inaugural end-to-end paperless trade combining electronic Bills of Lading (eB/Ls) and digitized LC in the commodity segment. The recent trade also marks the first ever use of essDOCS’ CargoDocs solution for exports out of India.
The transaction involved the sale of steel in containers by Tata Steel Limited in India, to Universal Tube & Plastic Industries Ltd (UTP Pipe) in UAE. The trade was supported by banks HSBC India acting as advising bank on behalf of Tata Steel Limited, and HSBC UAE acting as issuing bank on behalf of UTP Pipe, for cargo shipped on Ocean Network Express Line (ONE) from Haldia Dock Complex, India to the Port of Jebel Ali, Dubai, UAE.
The digital trade was executed through end-to-end data flow from the Letter of Credit (LC) managed in Contour, to shipping / trade documentation drafting, management, transfer and presentation powered by CargoDocs. All trade stakeholders accessed a single, integrated solution to complete the transaction – bridging digital islands, eliminating data re-entry, enhancing visibility and collaboration, while greatly speeding up the transaction.
Furthermore, with a significant portion of employees working from home due to Covid-19 restrictions, the digital transaction eliminated all physical interaction required when using paper documents.
Transaction highlights included:
- Online, real-time collaboration between the container line ONE, seller Tata Steel, buyer UTP Pipe, and banks HSBC India and HSBC UAE: to draft, approve, sign, issue, transfer and electronically present the original electronic Bill of Lading (eB/L), plus relevant supporting documents – slashing trade document turnaround time to hours compared to days (or even weeks) required in a traditional, paper-based transaction
- 100% of documents required under the LC were presented electronically
- Key firsts: first ever integrated paperless trade steel transaction globally, and first involving a blockchain-enabled LC; first for a shipment ex-India; first for an import into UAE; first use of CargoDocs for exports out of India and imports into UAE; first use for Tata Steel Limited (for exports), UTP Pipe, and banks HSBC India and HSBC UAE;
We look forward to continuing to support steel supply chain stakeholders in their ongoing journey to digital transformation!