As the first chamber in the world to implement blockchain-based eCOs, SICC seeks to provide its members, trade-related agencies and users of complementary services such as trade financing and insurance with a trade facilitation system that offers higher security, efficiency and flexibility.
The launch will see an initial group of users moving to the new system, with the remaining users transiting in subsequent phases.
The solution was developed by VCC, SICC’s technology partner and a 50.01%-owned subsidiary of SGX-listed DeClout Limited. The platform will vastly improve transparency, security and efficiency in authenticating trade documents. It permits instant verification of eCOs and runs on a private blockchain network that prevents fraud, alterations and third-party interference.
The platform represents a quantum leap in processing trade-related documents by hosting information of trade transactions on a tamper-proof distributed ledger system, which can be authenticated and accessed by various stakeholders of the platform.
VCC’s platform utilises QR codes, allowing eCOs to be scanned using smart phones and then printed. The number of allowable prints is restricted to prevent unauthorised duplicates. This improves efficiency and minimises the costs of verifying COs, removing a major impediment in the process and a frequent cause of high insurance or trade finance costs.
VCC intends to leverage on the Singapore launch to promote the platform globally, beginning with Asian countries that are substantive manufacturing exporters such as Japan, Myanmar and Sri Lanka, using the pay-per-use model. (Source: VCC).