As mentioned in previous blogs, the ICC Digitalisation Working Group is drafting a set of rules entitled the Uniform Rules for Digital Trade Transactions (URDTT). These are aimed at developing a high-level framework for rules and obligations covering the use of Electronic Records to process Digital Trade Transactions.
To date, five drafts have been distributed and many hundreds of ICC National Committee comments reviewed with individual responses.
Comments in respect of the 5th draft of the rules are currently under review.
The aim is for the next draft to be the final version. It is envisaged that this should be distributed during Q2 2021 for review and adoption voting by ICC National Committees.
Simultaneously, work has been initiated in order to evaluate the challenges and ideas to drive commercialisation /adoption of the URDTT.
A Digital Trade Transaction is distinct from the underlying commercial contract, and is the process by which the terms of the commercial contract are recorded and progressed.
Important to note that the underlying contract is satisfied by contractual performance and not by the conditions of the DTT - they are autonomous.
A DTT includes a Payment Obligation which will move from conditional to unconditional once the appropriate electronic records, as specified in the DTT, have been submitted.
A Financial Services Provider can add its Payment Undertaking to a Payment Obligation. Three key points to note:
A separate blog will be made available with selected FAQ for the rules.