The Inter-American Development Bank (IDB) has published a note entitled “The pandemic as an opportunity for digital transformation in customs” It states that Latin American and Caribbean countries should take advantage of the availability of new technologies, the accelerated innovation situation and the support of the international financial organization to speed up the modernization of their customs.
The analysis, prepared by Sandra Corcuera -customs and trade specialist at the IDB- and José Martín García Sanjinés -internal consultant of the Trade and Investment Division of the Organization-, highlights the rise of e-commerce, with international net sales of 28,3% between the first half of 2020 and the same period in 2019, based on Amazon. At the same time, it highlights the work of customs and its digitalization in view of the urgency in the clearance of critical goods to deal with both the emergency and the flow of trade.
However, the IDB blog post warns that countries in the region are lagging behind in the implementation of the Trade Facilitation Agreement of the World Trade Organization, based on 2019 data. To promote this purpose and economic recovery, better logistics performance and adequate infrastructure, both physical and digital, are required., and associated transport services.
To address these challenges, the authors include the following observations:
- Countries can implement the use of new technologies. available to improve customs management.
- Usable technologies allow the traceability of goods to be tracked (radio frequency and Internet of Things) and optimize the risk management (artificial intelligence, machine learning and big data).
- The use of new technological tools must be carried out in a context of Coordinated Border Management between customs and the rest of the entities involved in border processes.
- Coordination is streamlined by interoperability between authorities and economic operators through the Foreign Trade Single Windows (VUCE) or the Port Community Systems.
- The opportunity presents itself to foster and strengthen regional value chains with interoperability initiatives between customs systems and other border entities, such as through the Central American Digital Trade Platform and the application CHAIN that uses blockchain.
- Such elements would not be effective without a functional infrastructure at the entry and exit points of goods at land borders, seaports and airports. The project of Customs Technological Integration (PITA) of the Mexican Customs it's an example comprehensive intervention in border technology and infrastructure.
Finally, the note highlights that “countries in the region should take advantage of the availability of new technologies, the need for accelerated innovation represented by the pandemic, and the support of organizations such as the IDB to speed up the digital transformation of their customs.” (Access the note on the blog Beyond the borders).
Aduana News is the first Argentine customs newspaper to launch its digital version. With 20 years of experience, its publications and initiatives aim to provide the most relevant knowledge on customs issues in order to contribute to safe trade in the region.
