The Industrial Bank of Japan plans to develop an Internet-based system that will enable companies to import and export products as well as settle payments online, sources close to the project said Wednesday.

The system, targeted at international trade in automobile parts, will allow users to order goods from foreign manufacturers, clear customs, settle payments and borrow operating funds -- all via the Internet, the sources said.

According to the sources, it is probably the first attempt in the world to create online services aimed at making the process of importing and exporting goods more efficient.

The system can be expanded to make it applicable for trade in goods other than auto parts, they said.

If the system proves successful, it is expected to be one of the main features of online settlement services to be launched by the Mizuho Financial Group, which will be created this fall by the merger of the IBJ, Dai-Ichi Kangyo Bank and Fuji Bank.

The IBJ carried out a simulation of international online trading for three months starting in October with the cooperation of Nissan Trading Co., Mitsubishi Warehouse & Transportation Co. and U.S. parts manufacturers and trading companies, the sources said.

Project members found that a database they created to enable the online exchange of information -- such as business transactions, goods transportation and customs clearance -- helped make inventory management leaner, the sources said.

The IBJ is planning to conduct more simulations, including payment settlement and operational fund loan scenarios, with the goal of putting the system into practical use by fiscal 2001, which starts April 2001. the source said.

Audio firm off keyJiji PressInternet music distributor Liquid Audio Japan Inc. has announced that it will sink deeper into the red in its fiscal year to June 30, due chiefly to heavy costs to step up business cooperation with its U.S. partner.

The company anticipates a pretax loss of 934 million yen against a loss of 284 million yen the year before. After-tax losses are likely to swell to 952 million yen from 306 million yen.

The Tokyo-based company earlier expected a pretax loss of 768 million yen and an after-tax loss of 786 million yen.

Liquid Audio Japan signed a new licensing agreement with Liquid Audio Inc., which has a 7 percent stake in the company, on software and technical cooperation in March. This led to 120 million yen in depreciation costs, Chief Executive Officer Masafumi Okanda told a press conference on Tuesday.

For the first three quarters to March 31, the company logged a pretax loss of 664 million yen and an after-tax loss of 681 million yen, on revenue of 1 million yen.

But the company foresees a revenue jump in the fourth quarter of April-June, as it began to receive commissions for its fee-based music distribution services for Avex Inc. and other companies, Okanda said.

Annual revenue is estimated to grow to 304 million yen, far surpassing the year-before result of 52 million yen and its earlier projection of 56 million yen.

Liquid Audio Japan is one of the first two companies registered for trading on the new Mothers market of the Tokyo Stock Exchange in December. Since its creation in July 1998, the firm has not turned a profit.