Digital & toolsen
Blockchain and customs
Application of blockchain technology to customs procedures to improve traceability, security and efficiency of trade.
Blockchain applied to customs explores the use of distributed ledger technology (DLT) to improve the transparency, security and efficiency of customs procedures and international trade.
Use cases under development:
- Certificates of origin: automatic issuance and verification of tamper-proof certificates of origin (WCO pilot project)
- Electronic bills of lading (e-B/L): secure paperless transfer of title (TradeLens, although discontinued, paved the way)
- Goods traceability: end-to-end supply chain tracking
- Illicit trade control: combating counterfeiting and smuggling
- Mutual recognition agreements: automated verification of AEO status between countries
Limitations and challenges:
- Scalability: public blockchains struggle with global trade volumes
- Interoperability: absence of a universal standard between platforms
- Legal framework: legal recognition still incomplete in many countries
- Adoption: need for a critical mass of participants to create value
The WCO published a study in 2022 on the potential uses of blockchain in customs, identifying certificates of origin and AEO status as the most promising use cases.