Verifiable Credentials for Trade

otherProject Details

Relevant SDG targets:

SDG 8: Decent Work and Economic Growth

• Target 8.2 & 8.3: The project improves trade efficiency and reduces costs, enabling MSMEs to thrive while promoting innovation and sustained economic growth.

SDG 10: Reduced Inequalities

• Target 10.2: By lowering barriers for digitally underserved regions and businesses, the project helps integrate vulnerable groups into global trade networks, reducing economic disparities.

SDG 12: Responsible Consumption and Production

• Target 12.6: Enhanced document traceability through decentralized identifiers ensures accountability and supports sustainable production practices.

SDG 16: Peace, Justice, and Strong Institutions

• Target 16.5 & 16.6: Digitally verifiable trade documents reduce fraud and increase transparency, strengthening global institutions and trust in trade systems.

Project Purpose

In support of the joint call to action

• By ICC https://iccwbo.org/news-publications/news/icc-and-unece-call-for-global-adoption-of-unified-digital-trade-standards/
• By UNECE : https://unece.org/trade/uncefact/CallToAction

And to support UN/CEFACT document standards, especially those defined by

• The BSP structure for trade finance https://uncefact.unece.org/display/uncefactpublic/Buy+Ship+Pay+Data+Exchange+Structures+for+Trade+Finance+Facilitation

This project will provide guidance, samples, and test services for the implementation of any trade document as verifiable credentials.

Portable, secure, digital, and verifiable trade documents can address many of the barriers that have prevented ubiquitous digitalisation of trade such as the those listed here.

• Cost : By keeping the trade documents simple yet extensible, the implementation cost is minimised.
• Interoperability : By using a linked data vocabulary, semantic interpretation can be automated, further reducing costs.
• Inequality : By including a human rendering template every document is both human and machine readable.
• Integrity : By issuing each document as a Verifiable Credential (W3C or IETF)  every document is verifiable and revokable.
• Complexity : By decoupling data exchange from any technical channels, documents can be exchanged by email, or attached to goods, or any other convenient method – avoiding the need for costly EDI hubs or any other intermediary services.
• Trust : In conjunction with the global trust registry project, issuer identity is assured which avoids the need for seals and signatures on paper documents.

A good analogy to understand how verifiable trade documents will work is the traveler passport. It is a paper document with an embedded digital chip so that it is readable by both by smart gates at the border and by humans at a hotel check-in. The chip data is signed by the issuing country using keys that are listed in a global register maintained by ICAO. The passport is carried by the holder and presented wherever necessary.  UN verifiable trade documents will work in a similar way to passports in as much as they are self-contained, verifiable, human and machine readable, independent of any exchange channel, and linked to globally trusted identities.

The ICC has completed a very widespread industry collaboration to develop the Key Trade Document and Data Element (KTDDE) library.  ICC is now launching a “KTDDE Implementation Guidance (KIG)” program as the next phase of KTDDE development.  The program will engage with over 140 software solution vendors to develop mappings from between KTDDE and major platforms such as SAP, Microsoft, Oracle, etc. This is a valuable exercise because it will leverage real-world systems to inform the ongoing development of KTDDE, filling gaps from the previous KTDDE phase to deliver a complete model for trade documents that is as simple as possible.

The UN/CEFACT is also running the BSP structured for trade finance project. The Asian Development Bank reports an annual $2.5 Trillion trade finance gap in a 2021 trade finance, jobs & growth survey (https://www.adb.org/sites/default/files/publication/739286/adb-brief-192-trade-finance-gaps-jobs-survey.pdf). The gap (finding requested but not granted) overwhelmingly impacts small and medium traders and is tradeable to lack of document and identity integrity. When the trade finance related documents are exchanged as verifiable credentials, the gap can be substantially reduced.

This UN Verifiable Trade Documents project will deliver the necessary guidance materials together with test services and sample credentials to support the delivery of any document standard as human and machine readable verifiable credentials. It will also facilitate automated mapping of trade documents to the participating commercial software systems.

Several customs authorities are piloting the use of verifiable trade documents as a means to improve both trade facilitation and border risk & compliance outcomes.  This project will actively seek engagement with customs authorities that will benefit from increased data and identity integrity associated with cross border cargo movements.

Project Scope

In Scope

The project geographical scope is : Global

The project functional scope is to support ICC KTDDE and UN/CEFACT BSP structures for trade finance to deliver a library of trade documents as verifiable credentials.

• Trade : invoices and orders
• Transport : waybills, cargo manifests, consignment notes, etc
• Regulatory : origin certificates, phyto certificates, CITES, carnets, etc
• Finance : Letter of credit, bill of exchange, etc

The project technical scope is aligned with W3C verifiable credentials and follows the same architectural pattern as the UN Transparency Protocol (UNTP)

• JSON Schema to define simple & extensible structure
• JSON-LD context files to map data elements to widely used semantic vocabularies including the UN/CEFACT Buy-Ship-Pay data model.
• W3C / IETF Verifiable Credentials with rendering templates for packaging and exchange.
• W3C Decentralised identifiers and digital identity anchors for identity assurance.
• Human rendering templates based on UNECE recommendation 1 – UN layout key.

The blue part of the diagram below represents the scope of this project. The grey parts represent existing projects which have a dependency on this project.

This project will deliver:

• Verifiable Credentials guidelines that define design rules for the implementation of trade documents as verifiable credentials. This includes both
  • the W3C VC 2.0, DID 1.0, and related W3C VC specifications, and
  • the IETF SD JWT/ ACDC representation of verifiable linked documents.
• MLETR guidelines that define additional rules for the implementation of trade documents such as ocean bills of lading that are transferrable records / negotiable bills.
• Guidelines for verifiable digital identity that is linked to authoritative identity registers such as national business registers and/or trademark registers.
• Guidelines that allow the same source business data models to be implemented as Open API specifications as well as verifiable credentials.
• Guidelines for the inclusion of human readable renderings for digital trade documents - following UNECE Recommendation 1 (UN Layout key) standards.
• Guidelines for the mapping of trade document data elements to reference ontologies such as Buy-Ship-Pay, WCO data model, and others (using RDF and/or JSON-LD context). 

In addition to the guidance documents, the project will deliver

• Open-source tooling and a self-service test harness to facilitate uptake and interoperability confidence.
• A suite of sample credentials

The project will leverage formal liaisons with partner organisations including ICC, WCO, GS1, and UN/ESCAP to ensure alignment and appropriate governance.

Out of scope

• Business design of trade documents.  BRS documents and ICC DSI equivalents are created by other projects.  This project will only provide the technical guidance and tools for the delivery of any business designs as digital verifiable credentials.

Project Deliverables

Deliverable 1: VC4Trade Implementation guidance documents.
Deliverable 2: Test service and implementation register
Deliverable 3: A library of sample document schemas & render templates for use with VCs or APIs.
Deliverable 4: A linked data context file with term definitions. 

Exit Criteria

Deliverable 1: Guidance documents approved by bureau after public review.
Deliverable 2: A self-service interoperability test service and implementation register exists. 
Deliverable 3: At least two different implementers have tested each document and verified interoperability. 
Deliverable 4: A context file exists which links to semantic terms for all the available types of documents. 

Impact analysis

The UN Verifiable Trade Documents Project has the potential to deliver significant improvements in trade efficiency, transparency, and inclusivity. Evaluating its success requires tracking specific measures that reflect its impact on global trade processes, fraud reduction, and participation by vulnerable groups.

Key Measures to Track Impact

1. Adoption Rates
• Regulators: The number of countries adopting UN Verifiable Trade Documents in their trade policies.
• Businesses: The number of Software systems implementing (and testing) UN Verifiable Trade Documents
• Transactions: Anonymised volumetrics of VC4Trade documents issued – reported by registered implementers that use VC4Trade testing services.
2. Trade Finance
• SME Access: Reduction the trade finance gap measures by ADB.  Qualitative assessments from lender surveys.
• Fraud reduction: Proportion of documentary letter of credit issued against MLETR compliance Verifiable Documents.
3. Cost and Time Efficiency
• Processing Time: Reduction in the time taken to process trade documents, measured through industry feedback and customs processing times.

Project Team Membership and Required Functional Expertise

Membership is open to UN/CEFACT experts with broad knowledge in the area of: 

• Linked data and Verifiable Credentials expertise.
• Data modelers capable of expressing logical data requirements.
• Business subject matter experts drawn from existing UN/CEFACT, ICC , and other expert communities.

In addition, Heads of Delegations may invite technical experts from their constituency to participate in the work.

Experts are expected to contribute to the work based solely on their expertise and to comply with the UN/CEFACT Code of Conduct and Ethics and the policy on Intellectual Property Rights. https://unece.org/trade/documents/2010/12/session-documents/intellectual-property-rights-policy 

Geographical Focus

The geographical focus of the project is global.

Beneficiaries

The UN Verifiable Trade Documents Project is a game-changer for developing and transition economies, addressing systemic barriers like lack of trust, high costs, and limited digital infrastructure. By introducing digitally verifiable trade documents, the project empowers these economies to integrate seamlessly into global trade networks. Just as mobile phones allowed developing economies to bypass extensive fixed communications infrastructure, so portable digital documents such as VCs will bypass traditional EDI networks.

For developing regions, the project’s focus on simplicity, cost-efficiency, and interoperability ensures accessible and scalable adoption. With trade documents designed to work over basic digital infrastructure, even businesses with limited technical resources can participate. This minimizes reliance on expensive intermediaries and facilitates smoother cross-border transactions.

The project directly benefits vulnerable groups, such as Micro, Small, and Medium Enterprises (MSMEs) and women-led businesses, which often struggle to gain trust in global markets. Verifiable credentials ensure that these businesses can demonstrate legitimacy and compliance, breaking down barriers to market entry. By lowering documentation costs and enabling secure digital transactions, the project levels the playing field, fostering inclusion.

For sustainable trade, enhanced traceability ensures adherence to ethical and environmental standards, promoting accountability. Additionally, by building trust and reducing inefficiencies, the project addresses global trade challenges while enabling equitable growth, aligning with broader UN Sustainable Development Goals (SDGs). This initiative catalyzes a fairer, greener, and more inclusive global trading system.

Initial Contributions

This project builds upon work already completed by UNECE and partner organisations.

• ICC Key Trade Documents and Data Elements (KTDDE) - https://www.digitalizetrade.org/ktdde
• UN/CEFACT BSP structures for trade finance - https://uncefact.unece.org/display/uncefactpublic/Buy+Ship+Pay+Data+Exchange+Structures+for+Trade+Finance+Facilitation
• UN/CEFACT Global trust registry project - https://uncefact.unece.org/display/uncefactpublic/Global+Trust+Registry
• UN/CEFACT Buy Ship Pay vocabulary - https://vocabulary.uncefact.org/
• World Customs Organisation Data Model - https://www.wcoomd.org/DataModel
• org web vocabulary - https://schema.org/
• GS1 vocabulary - https://www.gs1.org/gs1-web-vocabulary
• White paper on verifiable credentials for trade. https://unece.org/trade/documents/2023/10/white-paper-edata-verifiable-credentials-cross-border-trade
• UNESCAP/WTO White paper on digital trade - https://www.wto.org/english/res_e/booksp_e/paperlesstrade2022_e.pdf
• UNECE Rec 1 (for document layout templates) - https://unece.org/trade/uncefact/tf_recommendations and specifically - https://unece.org/sites/default/files/2023-09/Rec01-ECE-TRADE-270E.pdf
• UNTP Verifiable Credentials vocabulary architecture  - https://uncefact.github.io/spec-untp/docs/specification/VerifiableCredentials 

Resource Requirements

Participants in the project shall provide resources for their own participation. The existence and functioning of the project shall not require any additional resources from the UNECE secretariat.

Project Proposal Files