After three years of preparation, the Dutch Parliament is set to deliberate on a bill introducing electronic bills of lading (eBLs) this month. This legislative move aims to modernize trade documentation, enhancing efficiency and security within the logistics sector. While this is a crucial step forward, it is only one piece of the puzzle in achieving full trade digitalization. To maintain momentum, the Netherlands must now focus on a broader legal transformation, particularly the full implementation of the Model Law on Electronic Transferable Records (MLETR).
What This Means for Businesses
The adoption of eBLs allows companies to transition from traditional paper-based bills of lading to digital formats. This shift is expected to:
• Expedite transactions by eliminating paper- based delays.
• Reduce administrative burdens and costs.
• Minimize fraud risks through secure digital tracking. • Improve operational efficiency by integrating digital trade documents into IT systems.
However, while beneficial, this reform alone does not fully enable the digitalization of trade. For businesses to truly benefit from a paperless system, other critical transferable records— such as promissory notes and trade finance instruments— must also be legally recognized in electronic form.
Why This Is Not Enough for Trade Digitalization
Although the introduction of eBLs marks significant progress, it addresses only one type of transferable document. Comprehensive digital transformation necessitates a legal framework that recognizes and facilitates the use of all electronic transferable records, ensuring their enforceability and interoperability across international markets. Without this broader framework, businesses will still face inefficiencies and legal uncertainties when using digital trade documents beyond eBLs.
The Importance of Fully Implementing MLETR
The United Nations Commission on International Trade Law’s (UNCITRAL) Model Law on Electronic Transferable Records (MLETR) provides a global framework for the recognition and use of all electronic transferable documents. By fully adopting the MLETR, the Netherlands can:
• Establish legal certainty for all forms of electronic trade documents.
• Reduce reliance on paper-based processes across supply chains.
• Improve cross-border trade efficiency, ensuring alignment with international partners.
• Strengthen the competitiveness of Dutch enterprises by reducing trade friction.
• Reduce corruption risks by minimizing manual handling and document forgery opportunities.
• Enhance sustainability by cutting down on paper usage and inefficient transport of physical
documents.
• Improve data security and transparency, ensuring real-time traceability of trade documents.
The Role of ICC and DSI in Driving Trade Digitalization
ICC actively advocates for harmonized international trade laws and facilitates dialogue between
businesses and policymakers to accelerate digital adoption.
The Digital Standards Initiative (DSI), an initiative under ICC, focuses on developing digital
trade standards that enhance interoperability between different stakeholders in global trade.
By working alongside governments and industry leaders, ICC and DSI are instrumental in
creating a regulatory environment that enables full- scale adoption of electronic transferable
records, including electronic bills of lading, digital promissory notes, and digital trade finance
instruments. By aligning national regulations with international standards, Dutch businesses can
remain competitive and seamlessly integrate into global trade ecosystems
Urgent Next Steps for the Netherlands
To capitalize on the momentum generated by the eBL initiative, the following actions should be
prioritized:
1. Full Implementation of MLETR – Ensure all electronic trade documents are legally recognized, not just eBLs.
2. Update Existing Legislation – Revise outdated laws that still require paper-based documentation.
3. Invest in Digital Infrastructure – Secure and standardized platforms for digital trade document
processing.
4. Educate Businesses – Provide training and support for companies transitioning to electronic trade.
The introduction of eBLs is a positive but incomplete step toward full trade digitalization. If the
Netherlands wants to lead in global trade efficiency, it must broaden its regulatory reforms to
encompass all transferable records. By implementing the MLETR and updating national laws,
businesses can fully embrace a paperless, efficient, and secure trading environment, ensuring that
the Dutch economy remains competitive in an increasingly digital world.
Stay updated and engage in the conversation! Join our MLETR implementation working group.