Eagerly awaited legislation to bring bills of lading and other trade documents into the digital age went before parliament today - but no timetable has been set for the measure to become law. The Electronic Trade Documents Bill, introduced in the House of Lords, will put digital trade documents on the same legal footing as their paper-based equivalents. The bill is based on draft legislation published by the Law Commission earlier this year. 

The measure will modernise legislation such as the Bills of Exchange Act 1882 and the Carriage of Goods by Sea Act 1992. These require physical documents to acknowledge the receipt and transfer of title of goods shipped internationally. However developments in digital technology, especially blockchain encryption can now ensure that electronic messages can be 'possessed' in a way analagous to paper. 

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Containers need papers - by law

According to the government, removing the legal obstacle to electronic versions of trade documents will significantly lower administration costs and provide a £1.14 bn boost to UK business over 10 years. It will reduce trade contract processing times from between seven and 10 days to as little as 20 seconds, according to Trade Finance Global.

Digital secretary Michelle Donelan MP said: 'Our digital-first plans will make it easier for the country’s firms to buy and sell around the world - driving growth, supercharging our economy, cutting carbon and boosting productivity. We want to support businesses by cutting red tape and allowing them to sell their goods and products globally without burdensome bureaucracy.'

The new rules will require trade documents in electronic form to meet certain criteria designed to replicate the key features of paper trade documents. This includes ensuring only one person, or parties acting jointly, can exercise exclusive control over it at any time, and removing the previous holder’s ability to exercise control over it once it has been transferred on.

The bill will have its second reading 'when parliamentary time allows', the government announced.