When goods and services cross borders in international trade, information needs to be passed between relevant parties, whether private companies or public bodies, including suppliers, logistics providers, customs, regulatory agencies, sellers and buyers. Paperless trade refers to the digitization of these information flows, including making available and enabling the exchange of trade-related data and documents electronically. Less formally, one can think of this as cross-border trade transactions using electronic data in lieu of paper-based documents.
Transforming what was traditionally a paper-based documentation system into an electronic format can speed up trade and ease the cost of doing business in today’s interconnected world. Bottlenecks in supply chain management and regulatory documentation can be particularly tricky for smaller businesses or e-traders with less experience and resources. Paperless trading, therefore, serves as a promising means to deal with the logistical challenges of e-commerce and, in particular, small shipments across borders. Overall, it is quickly becoming an essential component of governmental efforts to improve the efficiency of customs controls and trade administration processes, and of ensuring trade competitiveness in a rapidly digitizing world.