India, South Korea to share e-bills of lading to boost trade

India and South Korea have introduced the electronic exchange of bill of lading between their customs authorities, a move aimed at improving ease of doing business. South Korea is one of India’s key trading partners, with Indian exports to the country amounting to US$ 6.41 billion in 2022-23, while imports reached US$ 21.13 billion.

India and South Korea have initiated the electronic exchange of the bill of lading between their customs departments to enhance business efficiency. The bill of lading, a crucial document in shipping that serves as a receipt, contract, and proof of ownership, will now be processed digitally. 

According to Director General of Foreign Trade (DGFT) Santosh Kumar Sarangi, once this system becomes the global standard, physical submission of trade documents will no longer be necessary, a transition expected to take place within 1 to 1.5 years.

Mr Sarangi also noted the emergence of startups offering real-time tracking and tracing solutions for goods and containers. 

He stated, “Each of the containers coming into our country is RFID tagged and the movement is tracked on real time basis and going forward enabling IoT (internet of things) and ensuring that these containers movement is tracked from origin till it is shipped and beyond outside our shores also is something which is a work in progress.” 

This digital shift aligns with a broader initiative led by the United Nations Commission on International Trade Law (UNCITRAL), which is working to ensure that all trade documentation is handled electronically. As the UN’s main legal body for international trade law, UNCITRAL is focusing on modernizing and harmonizing trade practices globally.

South Korea, a significant trade partner for India, has had a comprehensive free trade agreement with the country since 2010. In 2022-23, India’s exports to South Korea amounted to US$ 6.41 billion, while imports from South Korea totaled US$ 21.13 billion. To further support exporters and importers, the DGFT has implemented several initiatives, including the recently launched Trade Connect e-Platform, which provides comprehensive information on duties, markets, and free trade agreements, making it a valuable resource for traders.