Toronto-based electronic cross-border payment systems developer CCEWeb has announced several new alliances with partners with which it will try to establish itself as one of the leading players in the emerging market for electronic trade finance.

Dresdner Bank AG, agreed in late March to become the first European bank to act as a Documentary Clearance Centre (DCC) in a pilot project for CCEWeb's @GlobalTrade Secure Payment and Trade Management System. Dresdner will provide document verification and settlement services. The DCC essentially aims to streamline the processing of electronic documentary credits.

CCEWeb's proprietary @GlobalTrade and Trade Management Systems claim to provide a complete electronic trade processing system. This means, according to company officials, that documentary credits can be issued over the internet. Buyers can then monitor the entire transaction process online, checking that merchandise has been shipped on time and in the quantities and condition specified in the contract.

According to CCEWeb, its systems eliminate the need to pay cash in advance for purchases, reduce transaction costs and increase buyers' potential to raise credit. The company also says its systems are simpler than conventional trade financing processes and will "virtually eliminate" any delays caused by discrepancies in paper-based processing.

Essentially, CCEWeb aims to bring all parties in a trade transaction onto the same electronic page and maintains its systems operate in an environment that provides bank-level security and satisfies existing ICC rules and trade practices.

The pilot project is scheduled to run from April to August 2001 with buyers, sellers, carriers, freight forwarders, customs brokers, surveyors and other parties to a trade transaction participating in it.

Earlier this year CCEWeb announced it was working with the UK government's Simpler Trade Procedures Board (SITPRO) to provide electronic documents to international standards for electronic documents. SITPRO will also participate in the pilot.

Other participants in the project include Denver-based Premier Bank, with which the Canadian systems developer agreed an alliance in April. It will participate as a credit-issuing bank, hence enabling its customers access CCEWeb's end-to-end electronic documentary credit solution.

Amongst CCEWeb's strategic allies are technology partners, China Systems Corporation, which provides trade finance software to the banking industry with over 600 sites in more than 75 countries and Identrus, an electronic system that verifies the identity of parties to a transaction.

The CCEWeb has also forged alliances with Visa International, and SGS, one of the world's leading verification, testing and certification outfits.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.