A UK based business chamber has certified an export consignment from an engineering company using blockchain.

Business West says blockchain could soon be similarly applied to letter of credit (L/C) processing too.

Certificates of origin

The chamber's pilot certificate of origin on blockchain was issued to Renishaw, a supplier of precision devices to several industries including aerospace and healthcare.

Business West annually issues between 30-40,000 certificates of origin that are needed to prove where goods were made for customs purposes.

L/C possibilities

Commercial director of Business West, James Monk, told the Financial Times that a standardised process could simplify and make it easier to check many parts of the supply chain including L/Cs, customs declarations and bills of lading.

Blockchain, which creates a distributed ledger to verify transactions, should make the process of sending goods abroad simpler and more transparent, Monk says.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.