The document discusses the development of the Uniform Rules for Digital Trade (URDT) by the ICC Banking Commission. It provides the following information: - The URDT is being drafted to establish a framework for the digitalization of trade finance. An initial draft has been distributed for feedback. - The draft takes a technology-neutral approach and assumes an underlying physical trade transaction documented electronically. It includes definitions, signatures, responsibilities of parties, and payment obligations. - Key issues discussed include aligning definitions with local law while using UNCITRAL models, and ensuring the rules remain agnostic to specific technologies. National committees are asked to provide feedback on the draft by November 8th.

1. O C T O B E R 2 0 1 9
I C C B A N K I N G C O M M I S S I O N
P A R I S
1
Uniform Rules for Digital Trade
(URDT)
D A V I D M E Y N E L L / D A V I D H E N N A H

2. Background
2
In December 2018, the ICC Banking Commission Executive
Committee approved a proposal to draft a new set of rules under the
working title:
Uniform Rules for Digital Trade (URDT)
The objective of the URDT is to develop a high-level framework
outlining obligations, rules and standards for the digitalisation of
trade finance.

3. Status
3
Several Drafting Group meetings have already been convened.
This has resulted in the development of an initial framework and
draft which, pursuant to review by the Consulting Group*, was
distributed to ICC National Committees on 27 September 2019 as
Draft 1.
Where appropriate, wording in previously approved ICC rules has
been used.
* Includes Banking, FinTech, & Corporate

4. Methodology
4
Technology neutral
• The approach adopted has been to produce rules that are
agnostic as to the medium used to conduct the Digital Trade save
that the Digital Trade has to be conducted using Electronic
Records and not paper.
Underlying trade transaction
• That has then required the assumption that there is an
underlying physical transaction for a sale and purchase or the
provision of services that the Principal Parties have agreed to
document electronically, including using a payment method that
is itself electronic.

5. Extracts from current draft
5
Article 1 Scope
• Digital Trade Transactions relate to the sale and purchase of
goods or the supply and receipt of services between a Seller and
a Buyer.
Article 2 Application
• URDT applies when agreed by the Principal Parties and are
binding unless expressly modified or excluded.
• This is URDT version 1.0.

6. Extracts from current draft
6
Article 3 General Definitions
• Beneficiary
• Buyer
• Confirmation
• Data Corruption
• Digital Trade Transaction
• Electronic Record
• Electronic Signature
• Finance Provider
• Involved Party
• Obligor
• Party
• Payment Obligation
• Principal Party
• Seller

7. Extracts from current draft
7
Article 4 Interpretations
• Words in the singular include the plural and vice versa.
Article 5 Electronic Records
• All data to be submitted in the form of an electronic record.
• A requirement that information should be in writing is satisfied
when an Electronic Record containing such information is
accessible.

8. Extracts from current draft
8
Article 6 Signature
Outline of requirements to bind a party, including:
• Consent
• Method of delivery or availability of an Electronic Record
• Capable of retention
Article 7 Responsibilities of a Submitter and Addressee
Outlines the responsibilities of a Submitter and an Addressee:
• Submitter is responsible for accuracy
• Addressee is not responsible for accuracy

9. Extracts from current draft
9
Article 8 Data Corruption of an Electronic Record
• Actions required in the event of data corruption.
• Re-submission deadline.
Article 9 Non-conformity of an Electronic Record
Actions required in the event of non-conformity with terms of a
Digital Trade Transaction:
• Replacement
• Acceptance
• Renegotiation

10. Extracts from current draft
10
Article 10 Responsibilities of a Principal Party
Seller:
• Deliver goods or supply services.
• Provide supporting information.
Buyer:
• Accept and take delivery of goods and services.
• Effect or agree to effect payment.
Article 11 Responsibilities of a Finance Provider
Outlines responsibilities if both Buyer and Seller have agreed terms
of the Digital Trade Transaction:
• Provide finance or risk mitigation
• Effect payment
• Add confirmation, if requested

11. Extracts from current draft
11
Article 12 Payment Obligation
• Irrevocability
• Data elements
• Separate and independent
• Conditional vs. unconditional
• Creation & amendment
• Confirmation
• Assignment

12. Extracts from current draft
12
Article 13 Liability of a Party
• Breach of responsibilities.
Article 14 Amendments to a Digital Trade Transaction
• Outline of the amendment procedure.
Article 15 Force Majeure
• Adaptation of usual force majeure article.
Article 16 Governing Law and relevant Applicable Law
• As specified or agreed.
• Rules supplemental to applicable law.
• Law prevails.

13. Contextual clarification
13
As with the recent eRules (eUCP version 2.0 & eURC version 1.0):
• The aim is to align definitions with those used in local law.
However, many legal definitions differ among themselves in
formulation if not meaning.
• As a result, URDT definitions, to the extent possible, are
modelled on the United Nations Commission on International
Trade Law (UNCITRAL) Model Law on Electronic Commerce,
which is the most widely imitated in eCommerce legislation.
• The UNCITRAL Model Law on Electronic Transferable Records
were also used as a reference point.

14. Issues of interest - 1
14
• As observed by the UNCITRAL Model Law on Electronic
Commerce, in most legal systems, the notion of ‘person’ is used
to designate the subjects of rights and obligations and should be
interpreted as covering both natural persons and corporate
bodies or other legal entities.
• Consistent with the approach taken in the UNCITRAL Model
Law on Electronic Commerce, any reference in the URDT to a
‘person’ should be understood as covering all types of persons or
entities, whether physical, corporate or other legal persons.

15. Issues of interest - 2
15
• Confirmation means a definite obligation of a Finance Provider,
in addition to that of the Buyer, to make a payment at sight or on
a fixed or determinable payment date to the Beneficiary of a
Payment Obligation, upon compliance by the Seller of the terms
of the Digital Trade Transaction.
• Finance Provider means a financial institution or body corporate
that is involved in a Digital Trade Transaction.

16. Issues of interest - 3
16
• Although there is no definition of ‘electronic’ in the URDT, such
term would, by its nature, exclude paper documents.
• It is essential to also note that by using the generic term
‘electronic’, the rules avoid linkage with any specific technology
or platform, thereby ensuring that the rules remain technology-
agnostic.

17. Next Steps
17
Feedback from ICC National Committees requested by:
8 November 2019
All comments will be reviewed and considered.
Updated version will be drafted, initially for review by Consulting
Group, and then for distribution to ICC National Committees.

18. Questions?
18