Cutting the Red Tape of International Trade

Efforts are being undertaken to streamline import and export administration, which eats up around 7 percent of the $6 trillion worth of international trade each year, according to the United Nations. A new initiative, Bolero, is intended to help reduce that paper-laden overhead.

Bolero is a joint venture between the international banking community, as represented by the SWIFT (Society for Worldwide Interbank Financial Telecommunications), and the TT Club, which represents the world's container fleet carriers, ports and terminals, and logistics companies. Their combined memberships work with almost every company around the world that buys and sells on the international market.

The new service, to be launched this fall, is designed to provide a secure, guaranteed service for the exchange of electronic trade documents, and its backers hope that in time it will become the norm for completing trades all over the globe.

A trial involving some 120 companies (including 15 of the top 100 worldwide) has already been carried out. Barry Morse, chief executive of Bolero International Ltd., says: ''The savings that we will be able to deliver will be in the millions of dollars.''

Bolero's instigators are anxious that the service should be as broad-based as possible. Its commercial director, Peter Scott, says: ''You can use any proprietary IP network or the Internet to connect. The interfaces can be developed by third parties, the business applications by other third parties. Simple user freeware will also be available on the site.''

SWIFT will guarantee the security and legality of trade done through Bolero. It already processes financial instructions for over $2 trillion per day and is responsible for global financial liquidity. All participants must agree to abide by the Bolero rule book.

Initially, users will apply for a connection from the Web site, but in time customers will be able to sign up for the service through ''Bolero-enabled'' banks, shipping companies and freight forwarders.

Web sites:

Bolero: http://www.bolero.net

SWIFT: http://www.swift.com

Annie Turner