{"id":105331,"date":"2020-11-05T10:01:31","date_gmt":"2020-11-05T07:01:31","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/wto-blockchain-report-says-customs-remains-weak-link-of-trade-digitalization\/"},"modified":"2020-11-05T10:01:31","modified_gmt":"2020-11-05T07:01:31","slug":"wto-blockchain-report-says-customs-remains-weak-link-of-trade-digitalization","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/wto-blockchain-report-says-customs-remains-weak-link-of-trade-digitalization\/","title":{"rendered":"# WTO blockchain report says customs remains \u2018weak link\u2019 of trade digitalization"},"content":{"rendered":"

“# WTO blockchain report says customs remains \u2018weak link\u2019 of trade digitalization <\/strong>”
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The World Trade Organization and Trade Finance Global have published their latest taxonomy of blockchain projects in international trade, arranged into what they present as a \u201cperiodic table\u201d for the industry.<\/p>\n

The original rendition of the periodic table was published in winter 2019. Since then, a lot has changed: despite the pandemic, several indicators used in the table show that blockchain trade innovation projects worldwide are reaching ever greater maturity.\u00a0<\/p>\n

On a scale of one to five, projects\u2019 maturity was assessed as being 2.3 on average in Dec. 2019. As of this month, the same figure stands at 3.3. To translate it into non-numerical terms, these projects are now \u201cbetween the early stages of production and being live and running,\u201d according to the WTO and TFG.<\/p>\n

According to the report, blockchain \u2014 also known as distributed ledger technology<\/a> or DLT \u2014 has two main benefits from the perspective of international trade. First, it enhances transparency, supporting what the analysts also refer to as \u201ctrack-and-trace\u201d capacity, which is useful for ensuring products\u2019 authenticity and thereby enhancing trust on the customer end.<\/p>\n

The other benefit of DLT is trade digitalization: streamlining trade documentation, processes, and the secure exchange and monitoring of data. Here, the report identifies what it believes remains the \u201cweakest link\u201d in the chain:<\/p>\n

\u201cAny digital process will only be as strong as its least digitized link. For many international trade systems this means integrating customs. While several governments are testing or considering using DLT for their customs operations and single windows, most projects remain at a conceptual or piloting stage.\u201d<\/p><\/blockquote>\n

Latin America is a forerunner on the customs front. The report positively cites<\/a> the development of a DLT project called Cadena by ICT specialists from\u00a0Mexico, Peru, Chile and Costa Rica in cooperation with Microsoft and IDB. Cadena is targeted at customs agencies and supports mutual recognition agreements between what are defined as \u201cauthorized economic operators,\u201d all within a framework set by the World Customs Organization.<\/p>\n

Elsewhere, progress is being made with proofs-of-concept and pilot concepts for customs by the United States Customs and Border Protection Office for\u00a0NAFTA\/CAFTA<\/a>, as well as Shanghai\u2019s \u201cSingle Window\u201d project, the Korean export clearance project, and the European Union DG Taxud ATA carnet <\/a>proof-of-concept.\u00a0<\/p>\n

Aside from this, the DLT-based TradeLens project has increasingly been integrating customs authorities, and a DLT trade documentation digitalization project from Avanza Innovations has integrated with Dubai Customs. Nonetheless, the report is straightforward about the limitations to blockchain trade optimization:<\/p>\n

\u201cWhile these are significant positive developments, it is not enough. If the industry wishes to continue extending the limits in terms of trade digitalization, they need to begin to see more movement along this front.\u201d <\/p><\/blockquote>\n