Electronic Trade Documents Bill [HL]: HL Bill 57 of 2022–23

The Electronic Trade Documents Bill [HL] would give certain electronic trade documents the “same legal treatment, effects and functionality” as their paper equivalent. The bill covers trade documents that must be capable of being possessed for them to have legal effect and function as intended. Under current law, only things that can be physically held are considered as being capable of being possessed. Therefore, UK law does not recognise the possibility of possessing electronic documents. The bill implements the Law Commission of England and Wales’s recommendations that the law recognises that such trade documents can be possessed in electronic form. 

Commonly used documents in the UK for the trade in or transport of goods the bill covers include: 

• a bill of exchange
• a promissory note
• a bill of lading
• a ship’s delivery order
• a warehouse receipt
• a mate’s receipt
• a marine insurance policy
• a cargo insurance certificate

It does not cover documents or instruments that come under the Uncertified Securities Regulations 2001. The new rules would require trade documents in electronic form to meet certain criteria designed to replicate the key features of paper trade documents. 

The bill would allow businesses to choose to use electronic trade documents, but they would not be required to use them. It would also allow paper documents to be converted to electronic documents and electronic documents to be converted to paper ones. 

The government has said the bill would “boost” the UK’s international trade, reduce financial and environmental costs, and increase efficacy and security. The measures have been largely welcomed by the sector.