The Singapore International Chamber of Commerce (SICC) has launched a blockchain-based e-Certificate of Origin (eCO) platform, driving the digitalisation of trade and lowering insurance costs.
The certificate of origin (CO) is a document used in international trade that indicates that the goods in a shipment have been wholly obtained, produced, manufactured or processed in the stated country.
SICC’s introduction of the blockchain-based platform increases the system’s security, efficiency, and flexibility for its members, government agencies, and complementary services such as trade financing and insurance, reported OpenGov Asia.
The solution was developed by Singapore-based international trade facilitation company vCargo Cloud. It will be adopted in several phases.
The launch ceremony was led by Chua Taik Him, senior advisor of Enterprise Singapore, with over 100 senior officials from trade-related agencies and industry leaders in attendance.
According to Chua, the initiative strengthens Singapore’s competitiveness as a global trading hub by increasing connectivity with international markets. The system uses QR codes, which will allow eCOs to be scanned by smartphones and printed a limited number of times. This security feature lowers the cost of verifying COs, which is a frequent stumbling block and a cause for higher trade finance and insurance costs.
“This new eCO system revolutionises what are today still essentially 19th century processes, providing greater security for all users as well as a clear, unambiguous audit trail through the use of blockchain technology,” said Victor Mills, chief executive of SICC.
