The London P&I Club is the trading name of The London Steam-Ship Owners' Mutual Insurance Association Limited and its subsidiary The London P&I Insurance Company (Europe) Limited. The London Steam-Ship Owners' Mutual Insurance Association Limited. Registered in England No 10341. Registered Office: 50 Leman Street, London, E1 8HQ. The London P&I Insurance Company (Europe) Limited, a private limited liability company registered in Cyprus, No HE410091. Registered Office: Esperidon 5, 4th floor, Strovolos, 2001, Nicosia, Cyprus 5 February 2025 TO ALL MEMBERS AND ASSUREDS Dear Sir or Madam Electronic Bills of Lading: Notification of new process Notification to members 1. The Group is pleased to announce that from 20th February 2025, paperless trading systems will be ‘deemed approved’, if they comply with certain requirements. The requirements for ‘deemed approval’ are: i) the system permits ‘compliant’ electronic bills of lading (‘E-bills’) only, meaning E-bills which are subject to a governing law which gives legal recognition to them as equivalent to paper bills of lading; and ii) the system is reliable and is evidenced as such, as set out at paragraph 7 ii) below. 2. To assist members, going forward, any system provider that approaches the Group for approval of their system, and which meets requirements, will be listed on the Group’s website. This applies both to systems that successfully complete the existing Group approval process as referenced in paragraph 8) below, as well as those that are to be ‘deemed approved’. Further guidance in relation to the approval process for all providers, going forward, is set out below. Background 3. Club Rules provide that liabilities arising in respect of the carriage of cargo under paperless trading systems are covered, provided that the system has first been approved by the Group. The Group’s involvement in approvals has been to ensure that systems do not prejudice members’ P&I cover, given the previous lack of widespread recognition in law of Ebills. Since 20 February 2010, the Group has approved thirteen electronic systems. 4. The emergence of new technologies such as distributed ledger technology, and new legislation have acted as a catalyst for the development of E-bill systems. For example, in September 2023, the Group welcomed the UK ‘s Electronic Trade Documents Act (“the Act”), giving legal recognition in English law to electronic trade documents, including E-bills. The Act meets the requirements of the Model Law on Electronic Transferable Records (MLETR), a uniform model law adopted by the UN Commission on International Trade law (UNCITRAL) in 2018. Other countries have adopted, or plan to adopt, similar legislation. The - 2 International Chamber of Commerce (‘ICC Digital Standards Initiative’) provides information on legislative updates on a country-by-country basis here. 5. Given the above, the Group reviewed its position in 2023 and introduced a streamlined approach to approval for systems which are limited to the use of E-bills subject to laws that recognise their validity as equivalent to paper bills of lading. At the same time, the Group published a ‘frequently asked questions’ document. Impact of legislative changes 6. Under the Act, the effectiveness of an E-bill is predicated on the system being reliable, and the Act sets out a reliability test. Whilst this is strictly a legal test, it is in fact a technological one in that the law will be satisfied provided that the technology mee