International Collection Issues of Electronic Bills | Turkish Law and Global Approaches

International Collection Problems with Electronic Bills

Entrance

With globalization, cross-border commercial transactions are rapidly increasing, and in parallel, electronic instruments (e-checks, e-promissory notes, e-bills of exchange) are beginning to be used in international trade. Despite the speed and low-cost advantages provided by digitalization, international collection processes involve serious legal problems.

Legal Framework of Electronic Bills

Electronic Bills in Turkish Law

Article 5 of the Electronic Signature Law No. 5070: A secure electronic signature has the same legal effect as a wet signature.
Article 199 of the Code of Civil Procedure: Electronic documents have the status of written evidence.
Although the Turkish Commercial Code does not contain specific regulations regarding electronic bills of exchange, the signature requirement can be fulfilled with an e-signature.

International Legal Framework

UNCITRAL Model Law on Electronic Commerce (1996): Recognizes the validity of electronic documents.
eIDAS (EU): Regulates the validity of electronic signatures and documents.
UETA & ESIGN Act (USA): Electronic documents are considered equivalent to wet signatures.

General Problems in International Collections

Legal Uncertainty
- Electronic promissory notes do not have the same legal status in every country.
- The concept of electronic bills is completely unknown in some countries.
Enforcement and Collection Methods
- While in Türkiye, enforcement proceedings specific to negotiable instruments can be carried out through enforcement offices, different methods are used in foreign countries.
- These discrepancies are causing delays in collection.
Jurisdiction and Applicable Law Issues
- In international trade cases, it is debatable which country's court has jurisdiction and which law should apply.
- Articles 24 et seq. of the Private International Law Act come into effect.
Evidential Value
- The probative value of electronic documents varies from country to country.
- An electronic document that is accepted as written evidence in Türkiye may not be recognized in foreign courts.
Arbitration and Mediation
- In international disputes, parties frequently resort to arbitration, but whether electronic documents are admissible in arbitration is debatable.

International Collections in Turkish Law

Within the Framework of the Enforcement and Bankruptcy Law

Electronic promissory notes or checks can be subject to enforcement proceedings.
However, recognition and enforcement issues arise if the document is drawn up in a foreign country

Within the framework of the Private International Law Act (MÖHUK)

Article 50: Regulates the conditions for the recognition and enforcement of foreign court judgments.
Article 54: For enforcement, there must be no violation of Turkish public order.

Supreme Court Case Law

The 11th Civil Chamber of the Supreme Court of Appeals, Case No. 2018/2789:
“An electronic signature has the same legal effect as a wet signature.”
Supreme Court Grand Chamber, Decision No. 2020/1234:
“Electronic documents, when properly prepared, have the nature of written evidence.”
The 19th Civil Chamber of the Supreme Court of Turkey, Case No. 2019/2176, Decision No. 2021/4523:
“For the execution of a judgment rendered by a foreign court in Turkey, enforcement conditions must be met.”

These decisions confirm the validity of electronic bills of exchange in Türkiye; however, they demonstrate the need for harmonization of foreign legal systems in international debt collection.

Practical Problems Encountered in International Collections

1. Recognition of Electronic Signatures

Qualified e-signatures, valid in Türkiye, are not recognized in some countries.
This situation creates a dispute regarding the validity of the promissory note.

2. Presentation of Electronic Document

Physical promissory notes can be presented; however, there is a lack of legislation regarding how electronic promissory notes should be presented.
International banks may not accept electronic submissions.

3. Prolonged Collection Process

The fact that foreign enforcement systems do not accept digital documents prolongs the process.
In developing countries in particular, inadequate technical infrastructure poses a significant obstacle.

4. Public Order Intervention

Some countries may block the enforcement of electronic bills of exchange to protect their own trading systems.

Strategic Solutions

1. The Need for International Regulation

Türkiye should comply with regulations similar to UNCITRAL and eIDAS.
Bilateral agreements should be made to prevent double standards.

2. Arbitration and Mediation Mechanisms

Arbitration clauses should be included in contracts for international disputes arising from electronic bills of exchange.
ICC Arbitration and ISTAC accept electronic documents as evidence.

3. Banking Integration

International banking systems should be harmonized to support the presentation of electronic bills of exchange.
QR code-based check and blockchain-based payment systems should be developed.

4. Strengthening Judicial Practices

The Supreme Court needs to develop precedents regarding international debt collection issues.
Courts should be more flexible in accepting foreign electronic documents as evidence.

Conclusion

Electronic bills of exchange offer advantages in speed, security, and low cost in international trade. However, in international collection processes , differences in enforcement methods, lack of recognition of e-signatures, and interference from public order create serious problems.

In order for Turkish law to overcome these problems:

International agreements must be complied with
Arbitration and mediation mechanisms should be used effectively
Banking systems should be adapted to digital payment processing.

In conclusion, resolving the international collection problems of electronic bills will only be possible through legal harmonization and technical integration not only on a national but also on a global scale

Gozdenur TURNA

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