Guidance

Memorandum of Understanding on digital trade facilitation

Published 22 December 2021

This was published under the 2019 to 2022 Johnson Conservative government

This is a Memorandum of Understanding between the Government of the Republic of Singapore, as represented by the Ministry of Communications and Information and the Government of the United Kingdom, as represented by the Department of Digital, Culture, Media and Sport.

0.1 Introduction

This Memorandum of Understanding (MOU) has been developed in connection with the negotiation of the UK-Singapore Digital Economy Agreement, in the context of contributing to a closer economic relationship between the United Kingdom and Singapore.

0.2 Participants

This MOU is made between:

The Government of the Republic of Singapore, as represented by the Ministry of Communications and Information; and the Government of the United Kingdom, as represented by the Department of Digital, Culture, Media and Sport. (referred to individually as a “Participant” and collectively as the “Participants”).

0.3 Purpose

This MOU is a principles-based document that sets out the overall framework within which the Participants will collaborate on matters of mutual interest and responsibility on cross-border trade facilitation.

The purpose of this MOU is to:

establish a collaborative working relationship between the Participants regarding their respective functions; develop and strengthen practical cooperation on cross-border trade facilitation matters between the Participants; and facilitate the relationship and cooperation between the Participants through the establishment of joint projects, as required from time to time.

0.4 Scope of collaboration

The Participants will identify areas or initiatives for cooperation. Such cooperation will be carried out in accordance with each Participant’s domestic laws, regulations, policies, international obligations and competence, and may include cooperation on:

Electronic Trade Documents

Enabling effective digitalisation in trade in a neutral and open fashion that allows electronic trade documents to be interoperable amongst applicable digital ecosystems; and
activities to establish project(s) to evaluate and validate the benefits of sharing electronic transferable records such as electronic transferable Bills of Lading, in an interoperable manner (see Annex A).

Electronic Invoicing

Activities to share information on electronic invoicing policies, practices and procedures in the Participants’ respective territories. This includes the showcasing of businesses using cross-border e-invoicing to encourage uptake, and support for education to facilitate the use of e-invoicing (see Annex B); and
activities to establish a pilot project to explore and validate the benefits of e-invoicing (see Annex C).

The Participants may identify and jointly determine further areas of common interest under digital trade facilitation which are consistent with the objectives of this MOU.

0.5 Costs and expenses

Unless otherwise decided in writing by both Participants, each Participant will bear its own costs and expenses, and provide its own resources for the implementation of this MOU and any matter related thereto.

0.6 Information exchange and confidentiality of information

If a Participant provides information to the other Participant in accordance with the collaborations under this MOU and designates the information as confidential, the other Participant will keep the information confidential.

The Participants will not use or further disclose confidential information provided by the other Participant under this MOU except for the purposes specified in paragraph 2.2 and within the scope of collaboration specified in paragraph 3.

The Participant providing the information is responsible for ensuring that guidance is provided to the Participant receiving the information on handling and protection requirements. Each Participant will respect requests made on handling and protection requirements regarding the security or sensitivity of the information.

Each Participant will comply with any condition, restriction or caveat imposed by the other Participant in respect of the handling or disclosure of information, subject to its own domestic laws and regulations, and international obligations.

In the event that information received by one Participant from the other Participant becomes subject to a court order or a requirement under their domestic law to produce the information, prior to any lawful disclosure, the disclosing Participant will inform the other Participant.

0.7 Disputes

Any dispute arising out of this MOU will be amicably resolved by the Participants solely by mutual negotiations and discussion in good faith.

0.8 Entry into effect, duration and termination

This MOU will come into effect on the date of signature indicated herein and will remain in effect for a period of five (5) years thereafter, unless terminated by either Participant giving at least one (1) month’s prior notice in writing to the other Participant.

0.9 Non-legally binding

This MOU does not constitute or create and is not intended to constitute or create any legally binding obligations. Nothing in this MOU will alter or affect any existing agreements between the Participants.

Without prejudice to the generality of the immediately preceding paragraph, the participants acknowledge that this MOU will not be deemed as an international agreement and will not constitute or create legal obligations governed by international law.

0.10 Amendments

Either Participant may propose an amendment to this MOU by means of written notice to the other Participant. An amendment will be effected only upon the mutual written consent of the Participants.

The foregoing represents the understandings reached between the Participants.

SIGNED in duplicate in the English language:

For the Ministry of Communications and Information: Josephine Teo For the Department of Digital, Culture, Media and Sport: Nadine Dorries

ANNEX A

Details on pilot project for electronic transferable records to transfer simulated transferable electronic bills of lading

0.11 Desired outcome

To transfer UNCITRAL Model Law on Electronic Transferable Records (MLETR) compliant (or equivalent), simulated transferable electronic Bills of Lading (eBLs) in a neutral and open fashion that allows them to be interoperable amongst applicable digital ecosystems

0.12 Objective

To facilitate digitalisation of trade flows between Singapore and the United Kingdom

0.13 Project Milestones

The Participants may consider the following activities to facilitate this pilot project over the next 12 months:

Alignment on scope:

• Test the interoperability of systems used to surrender a MLETR-compliant (or equivalent) simulated transferable eBL.
• Use two separate systems to ensure the transfer and surrender of an eBL
• 1x typical business scenario to base the role-play on
• Preparation of respective system
• Execute technical roleplays of transactions based on agreed-upon business scenario
• Preparation and sharing of project findings and experiences
• Communications efforts of project findings and experiences

Resources Required (dependent on aligned scope)

• Singapore: 1 project manager, 1 Technical manager
• UK: 1 project manager, 1 Technical manager

ANNEX B

Details on E-invoicing information exchanges and capacity building

0.14 Desired outcome

Participants to share information on e-invoicing policies, practices, and procedures in their respective territories.

0.15 Objectives

To learn and explore the benefits of e-invoicing and the benefits of using common standards (e.g. Peppol) for e-invoicing.

Project Scope

The Participants may consider collaborating on the following areas over the next 15 months:

• Sharing of information on the e-invoicing policies, practices and procedures, such as white paper, presentation material and websites. (
• Organising information sharing sessions among relevant parties from the Participants’ respective territories.
• Participants joining each other’s e-invoicing industry event (such as business briefings, roadshows) to gain a better understanding of the e-invoicing landscape in the other Participant’s territory.
• Joint industry events (such as workshops and training events) to equip businesses in the Participants’ territories with e-invoicing knowledge.

ANNEX C

Details of e-invoicing pilot project between companies/ organisations with cross-border transactions

0.16 Desired outcome

Participants to establish a pilot project between companies / organisations from the Participants’ respective territories to have e-invoicing cross border transactions to explore and validate the benefits of e-invoicing.

0.17 Objectives

Demonstrate benefits of e-invoicing to encourage adoption of common standards (e.g. Peppol) by companies in both Participants’ territories

0.18 Project Milestones

The Participants may consider the following activities to facilitate the pilot project over the next 24 months:

• Identify potential suitable companies / organisations from the Participants’ respective territories for the pilot.
• Facilitate introductory meetings and planning sessions between the companies to scope the pilot.
• Provide necessary support for the execution of the pilot. The support may include technical advisory, match-making with service providers and other businesses.
• Arrange for regular check-ins to track the status of the pilot.
• Produce a report after the pilot is completed and assess the benefits of cross-border e-invoicing transactions to participating companies.