Definition and principles of paperless commerce

UN/CEFACT takes an integrated approach to trade transactions to facilitate trade and related electronic business transactions, covering all processes from initial order placement to final payments. According to the UN/CEFACT White Paper on Paperless Trade, paperless trade refers to the digitization of international cross-border trade information, including the submission of trade data and documents and enabling their exchange electronically. Converting traditionally paper-based workflows to electronic format can speed up trade procedures and reduce the cost of doing business, so paperless workflows are a promising tool for solving logistical challenges in paperless trade. In general, paperless trade is rapidly becoming an important focus for governments of different countries to improve the efficiency of customs controls and administrative procedures in trade, as well as to ensure the competitiveness of trade that is rapidly moving towards digitalization. 

In order for parties to exchange and reuse fully electronic messages, the requirements for their content in terms of semantics and syntax must be clearly and unambiguously stated. This raises the need to recognize the electronic signature of a foreign state. Trading partners wishing to exchange data must agree on the meaning of each individual data element. This applies equally to public authorities and all other entities using or transmitting such data. 

A paperless trade information system refers to a system capable of handling electronic order processing documents, such as delivery notes, invoices, and customs declarations. The system could potentially also send orders to replenish inventory and have access to other departments to rent transportation, request certifications, and obtain other services. The more trade and international business processes move online, enabling interoperability, the more the benefits of the digital economy become apparent. This is a strategic choice for both government and business. 

Economic benefits for traders using electronic signature for paperless trade

The success of partnerships in the B2B segment depends on how competent they are and how effectively they use their network capabilities, including the ability to process information while receiving updates and thus synchronizing the entire network. Paperless commerce systems optimize the flow of information in global supply chains by facilitating the exchange of necessary documents or contractual elements both between businesses and between them and government agencies. 

Paperless trade systems save money by speeding up the movement of goods and increasing the efficiency of their processing by the relevant authorities at border crossings when this involves the exchange of administrative trade documents. Paperless trade also helps to fulfill international and national trade regulations more efficiently and at a lower cost. 

The dematerialization of administrative procedures in the area of trade may contribute to a system that is more difficult to make informal changes to. 

Reducing trade costs and increasing efficiency by moving to paperless trading can be particularly beneficial for small and medium-sized enterprises using paperless trading platforms to access international markets. Companies that transact electronically require fewer resources to process additional trade documentation. Late delivery caused by delays at the border can be detrimental to participants in paperless trade, whose credibility depends on good customer reviews. 

The establishment of paperless trade systems has also facilitated important innovations in international supply chains: for example, just-in-time delivery. This allows companies to operate with minimal inventory levels and order new shipments as inventory sells out or is used up. 

Selected commercial solutions can significantly facilitate customs clearance, primarily for paperless traders, by helping them integrate delivery and customs compliance procedures into their information systems. 

Some services for companies using paperless trade systems have a function of calculating the full cost of the supplied products, including customs duties and costs associated with shipment and transportation, which can be used by potential buyers, thus reducing the likelihood of conflict situations.