Mr. Dunlop is presently Director of Operations for ITFglobal.ie, and is responsible for the online trade transaction management team. The team’s vision is for all companies worldwide to be able to trade goods and services between themselves online via the Internet. He is a trade finance consultant with patents pending for online eUCP trade finance Internet solutions. Previously he was CEO of InterNetLC.com, LLC, providing management of international letters of credit for exporters and importers. He was past Director of International Services for Escrow.com. From that experience, he identified the need for simplified online international trade finance capability. Mr. Dunlop has been providing commercial letter of credit transaction management and documentation services since 1992. He has designed online trade finance capabilities for international banks and proprietary Internet-based software systems. He also teaches as an adjunct instructor for International Transactions at Grossmont College in San Diego, California. His work experience includes aerospace engineering, airline operations, and commercial jet engine marketing and management positions with major airlines and OEM manufacturers. During his four years of active service in the US Army, he served as a Captain commanding a company in Vietnam, and Deputy Director of Engineering at Corpus Christi Army Depot. Mr. Dunlop graduated from the University of Notre Dame in aerospace engineering and is a recipient of an Export Achievement Certificate from the US Department of Commerce and a member of their District Export Council.
A documentary trade credit (DTC) is a trade finance substitute for a commercial bank documentary letter of credit. A DTC is issued and negotiated under the same UCP guidelines as a documentary letter of credit; except the funds supporting the instrument are available with a third party international escrow company instead of a commercial bank.
With the Covid-19 pandemic, our paper-based trade finance settlement system suddenly stopped working. It is about time businesses adopt paperless and digital workflow to safeguard trade finance operations.
There is a common miss-conception that four or five multiple banks must be involved to manage letter of credit transactions. These multiple banks include credit issuing banks, advising banks, negotiating banks, confirming banks, and reimbursing banks. What is less understood is that these “banks” are functions, not necessarily physical banks. The trade finance functions these banks perform in a transaction can be done by separate banking institutions or by one bank under UCP 600 guidelines (Uniform Customs and Practice for Documentary Credits, ICC Publication 600).
The ICC Uniform Rules for Collections (URC522) Supplement for Electronic Presentation (eURC). On 1 July 2019, the revised internet eRules and guidelines for online trade finance documentary collections came into effect for banks, importers, exporters, and freight forwarders to prepare and present electronic records for documentary collections in lieu of or in conjunction with paper documents.
On 1 July 2019, the long-awaited revised internet eRules and guidelines for online trade finance finally arrived for banks, importers, exporters, freight forwarders, chambers of commerce, customs brokers, logistics companies and carriers, to prepare and present electronic records for documentary letters of credit in lieu of or in conjunction with paper documents.
Change is not just coming; change is here today, now. The impact of using electronic trade documents instead of hard copies of bills of lading, invoices, packing lists, and certificates to settle trade transactions via the Internet will be as profound to global trade finance as the containerization of cargo was to logistics.