CBP to Launch Blockchain Trade Pilot in FY18
CBP plans to launch a “proof of concept and/or pilot” in fiscal year 2018 on the potential applications of blockchain technology for trade, according to a document from the Commercial Customs Operations Advisory Committee’s Emerging Technologies Working Group. The agency is currently working with the trade community to develop “use cases” wherein blockchain could improve trade processes, and held an invitation-only blockchain workshop in October to discuss ideas. “There appears to be opportunity among the trade community to either track/validate goods in their supply chain to support due diligence or potentially to support verifiable claims to CBP for audit/compliance purposes,” the paper says.
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The main use of the technology is tracking events and changes in the context of trade processes, says the document, which was released in advance of the upcoming Nov. 14 COAC meeting in Washington. “Blockchain allows multiple competing parties to securely act with the same universal source of truth,” the document says. “Blockchain records events when they happen; when a stakeholder in the chain attempts to change a historical event, everyone involved in subsequent events knows. Blockchain doesn’t address process problems -- it helps address evidence problems.”
According to the report, ideas for blockchain uses that emerged at the meeting include partner government agency (PGA) certificates, licenses and permits; tracking the qualification of merchandise for free trade agreements and verifying that the necessary percentage of components were processed or assembled in a NAFTA country; bonded movement tracking; one U.S. government response; and container tracking through ports of entry. “The COAC Emerging Technologies Working Group will be leveraged to support follow on actions,” the document said.
CBP has posted the following documents for the Nov. 14 COAC meeting:
One U.S. Government at the Border
- 1 USG Subcommittee Trade Executive Summary (here)
- 1 USG FWS Issue Paper (here)
- 1 USG Technical Operational Outages Issue Paper (here)
- 1 USG ACE/Single Window Issue Paper November 2017 (here)
Exports
- Exports Subcommittee Trade Executive Summary (here)
Global Supply Chain
- Global Supply Chain Subcommittee Trade Executive Summary (here)
- Trusted Trader Subcommittee Trade Executive Summary (here)
- GSC Emerging Technologies Working Group (here)
- Trusted Trader Subcommittee Paper (here)
Trade Enforcement and Revenue Collection
- TERC Subcommittee Trade Executive Summary (here)
- TERC AD/CVD November 2017 (here)
- TERC Forced Labor Issue Paper (here)
- TERC Issue Paper Risk Based Bonding (here)
- TERC Intellectual Property Rights Issue Paper (here)
Trade Modernization
- Trade Modernization Subcommittee Executive Summary November 2017 (here)
- E-Commerce Working Group External Issue Paper (here)
- Revenue Modernization Issue Paper (here)
- Section 321 Issue Paper November 2017 (here)
- International Engagement and Trade Facilitation Working Group TFA Issue Paper November 2017 (here)