A perspective between different actors
The use of technology in foreign trade has proven to be a vital element for the creation of new business opportunities for the private sector through improved efficiency and consequently a reduction in costs in the long term.
In the case of the public sector, it has also favoured its modernisation in various spheres such as improved management and distribution of human resources employed in control tasks and improved risk management. In this sense, the identification of patterns that can be assessed for the subsequent detection of infractions or crimes meant that these human resources were directed directly towards the risk areas.
The WCO and the WTO have examined the operation of different types of technologies used in foreign trade, which can be listed as: 1) blockchain technology; 2) distributed ledger technology (DLT); 3) the Internet of Things (IoT); 4) big data and 5) the much-named Artificial Intelligence (AI). The main interest that these organizations have maintained is in determining how these technologies can promote trade facilitation, as well as fulfill the mission of Customs in the world (1).
An Agreement with a vision for the future
In Art. 7, paragraph 4 of the Trade Facilitation Agreement we observe that in terms of “Risk Management” it states that “Each Member shall adopt or maintain to the extent possible a risk management system for customs control…”. In turn, at the national regulatory level, Art. 179 of the CAROU (2) in conjunction with the above establishes that “The National Customs Directorate will develop risk analysis systems using data processing techniques and based on criteria that allow the identification and evaluation of risks and the development of the necessary measures to address them..”This risk management will be carried out using computer procedures in order to allow “an automated processing of information".
Thanks to the presence of these regulatory instruments, it was possible to develop and implement new technologies in favor of the automation of customs controls, simplifying and directing the performance of resources towards the detection of high risk, thus facilitating the movement of low-risk goods. The fact that the way in which the aforementioned regulations were written was somewhat “general” and did not specify this or that type of technology, may suggest that the spirit of these is to leave the door open in some way so that in the event that in the future the advance of technology implies the use of technologies different from those currently used, they can already be put into practice according to regulations, without prejudice to compliance with certain requirements necessary for their implementation regulated by each country.
In the case of Uruguay, the CAROU regulates in its Chapter V the “Computer Systems” their use, security measures; the means equivalent to the handwritten signature and the admissibility of records as a means of proof (3). In this sense, I will emphasize the use of these systems.
Although in its numeral 1 it indicates that they will be used in the registration of customs operations; in the event that they are not available "Alternative means will be used in accordance with customs legislation.”. Once again, emphasis is placed on the use of other means, but ones that comply with the regulations. Regarding security measures, these are directed not only at customs officials, but also at persons linked to customs activities who are authorized in the country.
Innovation applied to customs
Thanks to the Internet of Things (4) it is possible to expand the automation of border posts and customs procedures in ports.
In turn, through non-intrusive inspections of goods carried out using X-ray scanners, the results of these images can be analyzed together, also promoting cooperation between countries. However, this "automatic" exchange of images is not so simple since the different customs management systems should be compatible in their interfaces while maintaining the privacy of the information and the security of the data exchanged (5).
The issue of information security is always present when dealing with sensitive information. To this end, it is important to develop confidentiality mechanisms, generating the necessary guarantees between all parties.
Risk analysis is carried out throughout the entire cargo traceability process, i.e. prior to the arrival of the goods, prior to customs declaration, during clearance and after clearance. Applying intelligence to this analysis has served to improve selectivity at the time of control. However, the use of technology in risk management has brought many shortcomings to the table, which must be overcome for efficient implementation.
Nowadays, there are different tools that allow for the automated analysis of certain attributes that are almost impossible for humans or would lead to inefficiency in terms of man-hours. One of these tools is the so-called “OCR”, which was developed from Artificial Intelligence (hereinafter AI), which allows images to be converted into text and thus analyze information more easily.
Knowledge about what AI represents today has become widespread through the media, and it is very useful when it comes to generating tools that facilitate the work of analysis. As an example, we can mention the development of a tool that allows you to have a more diligent first “opinion” regarding certain daily tasks for both customs and private individuals. In this sense, there has been worldwide talk about the usefulness of its use in classifying merchandise. In this sense, the private company CONCEPTO is working on an intelligent system for managing tariff measures, which supports the correct classification of merchandise in the national subheading (6).
This type of tool, which could be used as an additional opinion to the analysis carried out, could also be useful for companies since it would improve compliance by avoiding discrepancies in their declarations and costs, given that incorrect payment of taxes can generate fines and delays.
Along with AI, blockchain has revolutionized schemes since its appearance. This technology, commonly associated with cryptocurrencies, has spread to multiple uses in international trade, one of which is also risk management and traceability in supply chains.
Various pilot projects have been carried out, which have also been possible thanks to the quality and authenticity of the information shared and/or exchanged between the different parties involved in the chain. In this way, this type of technology can avoid biases or alterations in the data provided, thus ensuring the traceability and integrity of the document.
Another very important aspect is the real-time availability of the information to be exchanged: characteristics that greatly favor transparency and prevent falsification and alteration, contributing to compliance.
An example of this type of technology is the implementation of the Digital Certificate of Origin, where progress has been made in some countries, such as in Singapore, where all the relevant information can be accessed through a QR code.
The implementation of these technological advances requires not only a digital infrastructure, the development of specialized human resources and economic resources, but also a legal framework that allows their implementation.
In times when technology advances faster than regulations, it is necessary to have legislation of such a nature that allows adaptation to the needs and automation, favoring the facilitation of trade and allocating resources, which are often scarce, for the detection of threats. Addressing weaknesses, seeking to generate compliance in the administered and using innovation in pursuit of an improvement in the organization, are premises to consider in favor of an effective alignment to the constant technological change at the level of international trade.
- “The role of advanced technologies in cross-border trade: a customs perspective”. WTO and WCO, 2022 https://www.wto.org/spanish/res_s/publications_s/wcotech22_s.htm
- Customs Code of the Eastern Republic of Uruguay. Law 19.276 of 2014
- Arts. 180 to 183 of Law 19.276 Customs Code of the Eastern Republic of Uruguay.
- The Internet of Things (IoT) refers to the collective network of connected devices and the technology that facilitates communication between devices and the cloud, as well as between devices themselves. A common IoT system works by collecting and sharing data in real time. https://aws.amazon.com/es/what-is/iot/#:~:text=El%20t%C3%A9rmino%20IoT%2C%20o%20Internet,como%20entre%20los%20propios%20dispositivos.
- Conclusions reached in the WTO-OMA report https://www.wto.org/spanish/res_s/booksp_s/wcotech22_s.pdf
The author holds a degree in International Relations from the University of the Republic of Uruguay. She specialized in Comprehensive Logistics from the Catholic University of Córdoba, Argentina. She has been involved in Foreign Trade since 2011 and has worked in the Inspection Division of the Control and Risk Management Area of the National Customs Directorate in Uruguay since 2014. She received training in Post-Clearance Control from the World Customs Organization in 2016 and has been a speaker on the subject in various workshops and seminars for countries in Latin America and the Caribbean. From 2022 to 2023, she participated in WCO Missions, providing technical assistance in Post-Clearance Audit. She has also been a speaker on risk matters at other Customs authorities, such as SUNAT in 2021, presenting "Commercial fraud according to the WCO and its most significant manifestations","New challenges in risk" before the Secretary of Strategic Intelligence of the State of Uruguay (SIEE) and recently in 2025 regarding "Activities of the National Customs Directorate. Risk Control and Management Area. Inspection Division" within the framework of the Cooperation Project for Economic and Financial Security and the Fight against Organized Crime (SEFILAT).
Current events and constant technological advancement have also motivated her, so she has trained in the use of new technologies that promote trade facilitation, participating in various workshops on innovation in trade facilitation organized by the Global Alliance for Trade Facilitation.
