HSBC and Iron Ore Company of Canada take trade digital with essDOCS

Earlier this year, Iron Ore Company of Canada (IOC), an entity of the Rio Tinto Group, successfully processed an Export Documentary Credit electronically, using essDOCS’ CargoDocs platform. This was the first ever Export Documentary Credit e-presentation for any bank in Canada and the first ever for HSBC in North America. Not only does this good news demonstrate our market leadership to digitize trade, it also highlights the value the industry can capture in digitizing supply chains. The next generation of trade will build a digital thread that binds supply chains together, enabling connectivity, convergence and interoperability across ecosystems, so trade becomes simpler. HSBC is committed to leading the industry in transforming trade by investing in technology that centralizes data and increases transparency and traceability for customers.

To facilitate this transaction, essDOCS, a third party technology provider, played a critical role. ePresentation through essDOCS’ CargoDocs platform connected this supply chain digitally; from the exporter, exporter’s bank, carrier, ship agent, importer, through to the importer’s bank. “Using the latest technology means we can help our clients complete transactions within hours rather than days or weeks. We’re excited about what this means for our customers, their customers around the world and the entire ecosystem.” said Andrew Skinner, Head of Global Trade and Receivables Finance, HSBC Bank Canada.

For IOC, ePresentation is driving a variety of efficiencies for their business, namely:

• Process streamlining by accelerating the transfer of documents between parties
• Reducing potential fraud risks associated to title transfer vs. paper documents
• Increased control of documents, and
• Better handling of discrepancies and corrections

Pascal Nobécourt, commercial manager, IOC, said: “This successful first ePresentation was made possible by a coordinated effort between essDOCS, HSBC, IOC, Ningbo and its team involved in the transaction. Thank you to all those who made it possible. Looking forward to continue our journey to digitalize our operations in 2021 and beyond."

For businesses considering ePresentation, here are 3 tips to help you digitize

1. Ensure all parties leverage a common third party platform – HSBC has partnered with essDOCS and other key industry players (technology providers) to digitize document presentations for exporters/ importers
2. Understand the landscape - ePresentations are governed under ICC UCP 600
3. Include details of the document format and presentation requirements using the latest version of UCP and eUCP

We’re proud of the role we play in Canadian trade – and we’re proud that our clients recognise it too. In a Euromoney survey of more than 11,000 businesses, we were voted as the world’s top trade financing bank – for the fourth year in a row. Here in Canada, we were awarded Market Leader and Best Service for the third year in a row.