A monthly legal financial journal

ISSN 1481-6261 Volume 3, Issue 6, June 2001

POWERED BY @GLOBALTRADE

OUB, Premier Bank, and CNA Join Pilot

By: David Jack

Overseas Union Bank (OUB) Singapore, and Premier Bank Denver Colorado, are among the first financial institutions to participate in the pilot of CCEWeb’s @GlobalTrade™ Secure Payment and Trade Management System as credit issuing banks, providing their customers with a complete end-to-end electronic documentary credit solution. CNA’s maritime division, together with a technology provider, Insurance Systems Inc., is the first insurance group to join the pilot. @GlobalTrade system tests began in April 2001 and are scheduled to run until the Fall of 2001 with international importers, exporters, trade service providers, and financial institutions participating.

CCEWeb provides technology, software, and a legal framework for handling electronic documentary credits, including the presentation of electronic documents. Dresdner Bank AG will act as the Documentary Clearance Center (DCC) for the pilot, providing documentary compliance services. The DCC streamlines the processing of electronic documentary credits by combining a number of traditional bank roles into one. CCEWeb plans to partner with major international banks that are committed to insourcing trade processing for the DCC role.

‘With the recent trend of globalization and technological advancement, it is important that trade services provision is able to transcend time and geographical boundaries, such that traders and banks globally can transact in a more efficient and effective manner. The ability to process documents electronically in addition to letters of credit issuance would further enhance our competitive advantage,’ said Mr Soh Chee Seng, VP & Head, Trade Services, Overseas Union Bank.

@GlobalTrade makes it possible for a documentary credit to be issued and advised over the Internet from anywhere in the world; eliminates the need to pay cash in advance for purchases; abolishes delays caused by discrepancies in paper-based processing; and allows tracking of the entire transaction process online in real time. In partnership with China Systems, the largest bank trade finance system vendor in the world, CCEWeb builds on a proven technology platform operational in over 250 banks in 75 countries. ‘CCEWeb’s @GlobalTrade has a strategy to bring all the players together in one system. This should significantly reduce the ‘discrepancies’ found in documents, resulting in prompt payment and reduced bank costs and fees. We are impressed with the demonstration of the product,’ said Roy Becker, VP and International Trade Officer, Premier Bank.

The @GlobalTrade system enables OMMni.com, CNA’s automated ocean cargo insurance system to receive instructions to issue electronic insurance certifications over the Internet from exporters participating in @GlobalTrade. Nigel Jenkins, Global Marine Underwriting Manager for CNA’s maritime division, commented, ‘As we move into the 21st Century, the face of marine cargo insurance is changing and at CNA’s maritime division we intend to be at the forefront of driving that change. With OMMni.com, our customers get the real time information they need about their cargo insurance. Through partnerships such as this one with CCEWeb Corp., we can further enhance the service we provide to our customers.’

@GlobalTrade will enable CNA’s automated ocean cargo insurance system to receive instructions to issue insurance certificates over the Internet from registered @GlobalTrade users. Participating banks would be able to accept an electronic insurance certificate without requiring an original paper document to be presented.

Corporate customers benefit by saving time and courier costs. Also charges related to discrepancies in paper documents and the time needed to correct them will be greatly reduced. @GlobalTrade Documentary Clearance Centers, processing documentary credits for multiple financial institutions, will be able to authenticate OMMni.com insurance certificates and accept them as electronic originals for payment under documentary credits. Terry Neilson, President of Insurance Systems Inc., stated, ‘The vision of electronic commerce including ocean cargo insurance has become a reality. The integration of OMMni.com with @GlobalTrade technology will demonstrate that clients will be able to conduct transactions at a fraction of the previous cost.’

‘Insurance is an important part of a trade transaction. We are pleased to be working with CNA and Insurance Systems Inc. These innovative companies are taking real steps to move the cargo insurance industry to paperless trade,’ said Art Thomas, CCEWeb’s Senior Vice President Business Development. ‘Participation of OUB and Premier Bank gives the pilot a true global scope,’ Thomas added.

@GlobalTrade’s solution will help corporations and eMarketplaces to do more business and will assist financial institutions to provide their clients with a secure payment and document management system. Since announcing the company’s plans at the International Financial Services Association Annual Conference held September 25 – 28, 2000, in Orlando, Florida, financial institutions and trade service providers around the globe have validated the concept and found it beneficial for their clients. In the proof-of-concept phase that began in November 2000, selected importers and exporters have gone through the prototype of the system together with their trade service providers and financial institutions.

‘Having participated in stage one of the pilot program, I am impressed with the technology and with the functionality of the program offered by CCEWeb. From a user’s standpoint, this tool will assist companies in reducing redundant tasks and costs as well as expediting the necessary payment function to vendors,’ said Vihn Grant, Controller, Alpine Air, based in Denver, Colorado.

CCEWeb Corp. is part of the CCEWeb Group and the parent company of this publication. The Company is a service provider to financial institutions involved in international merchandise trade. Users are able to conduct their business over the Internet thereby maximizing available credit, reducing transaction fees, and dramatically simplifying all aspects of the process including issuing documents and tracking the progress of transactions. All of this is carried out in an electronic environment that provides bank-level security and satisfies ICC rules. CCEWeb’s goal is to bring all parties in a trade transaction onto the same electronic page. www.cceweb.com.