For the importing of the flat Carbon Steel, there was a Contour Blockchain platform that empowered out end-to-end digitalization of documentation necessitated.
The HSBC bank has implemented a blockchain-empowered, end-to-end digitization of the documentation essential for Universal Tubes to introduce an order of flat carbon steel to the UAE from Tata Steel in India. The transaction was the first unified paperless letter of credit and eDocs contract for a steel export globally, and the initial ever end-to-end paperless trade joining electronic bills of lading and digitized letter of credit in the steel commodity segment.
Contour’s platform consents parties to have visibility of a trade, while also confirming that no single organization controls all data, according to the banks, importers and exporters enhanced visibility. The transaction also incorporated essDOCS’ CargoDocs solution, permitting the transfer of the title of goods alongside the letter of credit.
A statement stated out that “A founding shareholder in Contour, HSBC was the initial bank to join the platform as a full production member in December 2020.”
Sunil Veetil, native head of global trade and receivables finance (GTRF) at HSBC, Middle East, North Africa and Turkey, stated out that: “We are delighted with Universal Tubes’ and Tata Steel’s decisive action to conduct this trade over Contour, which reinforces the commercial and operational viability of blockchain and the Contour platform. We are confident this will pave the way for widespread adoption by other clients, counterparties and industries, many of whom we are already in talks with.”
Peeyush Gupta, VP (steel marketing and sales), Tata Steel, stated that: “Adoption of this platform is in line with our objective of agility and enabling a faceless yet trustworthy all-time interface to better customer experience. This initiative, executed in collaboration with HSBC, demonstrates our continued efforts to lead technology led disruptions by challenging the status quo and reimagining the global trade set-up.”
Digitization of the paper-based and manual procedures can diminish transaction times from 5-10 days to under 24 hours, unearthing working capital and empowering more trade to be done between nations, the statement added. By optimally utilizing the blockchain, the concentrated transaction time will enhance the efficiency of trade between the two nations, which is worth at around $60bn with the UAE being India’s third largest trading partner.
Anil Taurani, Managing Director, Universal Tubes & Plastic Industries Ltd, UAE, stated out that: “The future of trade is digital and the success of this blockchain transaction encourages us to look forward to linking all our future Letter of Credit transactions to this solution.”