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December 4, 2020
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Blockchain technology is again in news for its application in ‘paperless’ trade. The Australian Border Force (ABF) is planning to use Blockchain in cross-border trade. It aims to make it simpler, quicker, and convenient. In addition, ABF is planning to start paperless trade with the Asian nation Singapore. The ABF is Australia’s customs and border protection agency.
On November 25th, ABF has announced the launch of this digital cross border trade. After that, the two leading business nations had signed an agreement on this behalf in August.
What is the Australia-Singapore Digital Economy Agreement (DEA)?
DEA is a path-breaking step. A global benchmark was set for digital trade rules and practical trade cooperation. The expectation is that it would shrink the obstacles to virtual (digital) trade. Above all, it would create an environment conducive for Australian businesses as well as customers. 
It would encourage the participation of Australian businesses and consumers in digital trade. Therefore, the aim is to bring them closer to a digital economy.
It would encourage the participation of Australian businesses and consumers in digital trade. Therefore, the aim is to bring them closer to a digital economy.The Blockchain trial run will end by early 2021. Moreover, a discovery report compilation of the learning from the trial is under the plan.
Highlights from the agreement and the new development.
- It would integrate paperless trading. Therefore, this means no more paperwork for each business dealings and activities. It would also contribute to the environment. In addition, it is a sustainable way of doing business.
- Promote secure digital exchange and sharing of trade information. Dissemination of information would be easier. Therefore, the sharing of critical information in a safe way is possible.
- Reduce hurdles lie in digital trade and promote a seamless trade environment. It would have a positive impact on business volume and dynamics.
- The Blockchain tryout aspires to trim down administration costs. Digital transactions would cut administrative costs. In addition, cost savings would be possible for traveling expenses. Above all, the technology would help in virtual meetings and conferences.
- It would create a better business culture that enhances trade efficiency.
- Help in sharing and exchanging electronic documents. These documents are safe to store and transfer.
In addition, the exchange of documents is possible in a very quick time. Therefore, the documents will be safe. There is no need for storing files in piles. Accessing any document will be a matter of a few seconds.
- It will test digital verification platforms for primary certificates of origin.
- It is a big step towards Australia’s plan for Single Window Trade facilitation in the future.
Bottom-line
In conclusion, the initiative by the Australian authority is good news for Blockchain fans. It would help both the Australian businesses and customers in diverse ways. It would boost the national economy in many. Paperless trading would have a positive effect on the environment. Australia-Singapore Digital Economy Agreement is going to transform the digital economy of Australia.
The digital economy is going to transform the business environment of Australia. Blockchain would enable quick transactions among a huge network of stakeholders. Transparency and security aspects would make transactions more acceptable. Exchange of business documents would be possible. Business houses and other concerns would not waste time on physical paperwork. Through Blockchain smart contracts would be possible.
