The World Trade Organization (WTO) and the World Customs Organization (WCO) have launched a joint publication on how emerging technologies can help customs authorities facilitate the cross-border movement of goods and improve security and revenue collection.
The publication, titled “The role of advanced technologies in cross-border trade: a customs perspective”, examines the opportunities and challenges that customs encounter when using blockchain, Internet of Things, data analytics and artificial intelligence. The report uses the results of a 2021 WCO survey, answered by 124 of its 183 members.
The document finds that the blockchain and distributed ledger technology (DLT) can help to increase transparency, immutability and accessibility of information and data quality, as well as the exchange of information on border management procedures among all stakeholders.
There have also been positive developments in the use of Internet of Things by customs. The report presents evidence that such technology is being used to fully automate border crossings and customs procedures at national ports. One initiative includes the integration of X-ray scanners into a cross-border image exchange to analyze the results of multiple scanning stations. The installation of X-ray systems and image analysis software has optimized the allocation of human resources and improved the quality of image analysis. Other projects include the use of radio frequency and identification antennas or electronic seals to ensure the traceability of goods and means of transport.
The report illustrates with data on advanced analytical technologies such as Big data, data analysis, artificial intelligence and machine learning. It notes that around half of customs offices use some combination of such innovations, as these technologies have clear benefits for risk management, profiling, fraud detection and ensuring greater compliance. However, the report highlights the need to establish a data strategy to ensure better data governance and quality. It also recommends resources to address the barriers and challenges to introducing such technology, such as cost and the need for experience and good practices.
At a virtual launch event on 29 March, the WTO and WCO, in cooperation, contributed to the debate on convergence of technology and customs. WTO Deputy Director-General Anabel González, highlighted the opportunity that these technologies offer to customs to advance trade facilitation, and noted that “blockchain could help make trade more transparent and less paper-intensive (…), reducing bureaucracy at the border.” In this regard, the Deputy Secretary General of the WCO, Ricardo Treviño Chapa, added that technologies will help the implementation of international trade facilitation rules, such as “the Revised Kyoto Convention of the WCO and the Trade Facilitation Agreement of the WTO.” Meanwhile, the panelists of Brazil, Nigeria, Singapore and the IDB They mapped the current use of these technologies to harmonize customs processes and to simplify trade; and emphasized the essential role of continuous awareness-raising, the need for interoperability and implementation of international standards, the relevance of engaging in dialogue at the international level, as well as the relevance of a strategy for innovation at the national level.WCO Press Release) (WTO Press Release) (Publication “The role of advanced technologies in cross-border trade: a customs perspective”)
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.
