Consultation to inform options for implementing the Model Law on Electronic Transferable Records in Australia

Overview

We are undertaking a public consultation to advise the Australian Government on options for implementing legislation aligned with the Model Law on Electronic Transferable Records (MLETR).

The MLETR is a model law developed by the UN Commission on International Trade Law (UNCITRAL).

It contains a set of provisions which, if adopted into domestic law, would confirm that transferable records in the form of electronic data (or ‘electronic transferable records’) have the same legal status as traditional paper versions of those documents.

Implementing the MLETR would give industry the confidence to choose to use electronic ways of managing transferable records, and so enjoy any associated efficiencies or other benefits.

‘Transferable records’ include paper documents like bills of lading, bills of exchange, warehouse receipts, letters of credit, transferable insurance certificates, promissory notes, and other documents which give the ‘possessor’ rights to goods or money.

How to share your views

We invite individuals and organisations to share your views via the 'Make a submission' link below. The consultation opens on 16 September 2024 and closes on 28 October 2024.

Our preference is that you share your views by answering our consultation questions directly in the survey. This will allow us to more easily cross-reference positions and data.

You may also upload a document containing your written answer to the survey questions, via the ‘Final questions and document upload’ survey sub-page. To help us analyse data more effectively, please identify whichever questions you are answering in your response.

The accompanying Consultation Paper below informs the questions in this survey. Please download, read and refer to this Consultation Paper as you share your views. However, we have also briefly summarised the information in the Consultation Paper throughout the online survey.

You do not need to complete the survey questions in one sitting: if you exit the survey before completing it, you may receive a unique link, which will allow you to return to the survey.

Who we want to hear from

We are interested in views from:

• trade participants (including exporters, importers and shippers involved in domestic and cross-border trade)
• trade facilitators (including freight forwarders, logistics companies, banks and insurance companies)
• legal experts
• technology providers (including developers and operators)
• academics
• relevant representative organisations and peak bodies
• individuals with an interest in trade and trade finance.

Why we are consulting

Transferable records are an essential requirement in many Australian and international trade processes. However, despite advances in technology, most cross-border trade documents (including transferable records) are still used in paper form.

We have heard that the need to produce paper transferable records can disrupt the trade of goods or other processes, causing inefficiencies and costs along the supply chain. These costs and complexities can create a barrier to trade, particularly for resource-constrained small businesses.

At this stage, we are seeking to explore options for reform to confirm the legal validity of electronic transferable records in a way that:

• promotes industry confidence
• preserves the key functions of these records
• is consistent with existing Australian law
• is interoperable with the legal frameworks of our trading partners.

Further, the delivery of options for legislation aligned with the MLETR is part of the government’s Simplified Trade System (STS) reforms. These reforms will deliver benefits to business by simplifying and modernising Australia’s cross-border trade regulatory environment.

What happens next

After this consultation, we will analyse responses to build potential options for implementing the MLETR in Australia.

Subject to government approval of any option, we will undertake further work to implement appropriate legislation under Australian domestic law.

How to share your views

Read our Consultation Paper and contribute to the development of potential implementation options by responding to our questions using the ‘Make a submission’ link below.

• Consultation Paper [PDF 1.1MB]
• Consultation Paper [DOCX 2.9MB]