Electronic Bills of Lading and Functional Equivalence

Merchants are increasingly using computers to facilitate international transactions, and many observers believe that full-fledged electronic commerce is nearing reality. At present, the business community uses a system known as electronic data interchange (EDI). Because EDI is both quick and efficient, the shipping industry is expected to benefit greatly from its adoption, particularly in the areas of bills of lading. Unfortunately, numerous technical and legal obstacles have slowed the introduction of EDI, with the chief impediment being the law's insistence on paper-based documentation.

Recently, however, several significant steps have been taken to promote the use of EDI. The purpose of this paper is to briefly describe these developments.