Trade facilitation and customs valuation
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WTO/WCO Study Report on Disruptive Technologies
So-called disruptive technologies such as blockchain the Internet of Things artificial intelligence and machine learning have the potential to transform border management and the conduct of international trade. This publication explores how these advanced technologies can be used to improve the efficiency of Customs processes and to ease the flow of goods across borders.
Holistic use of technologies for Smart Customs of the future
2021 has highlighted the critical role that Customs play in enabling global trade. To make the global supply chains of the future more efficient Smart Customs have to minimize Customs clearance time and costs while intelligently managing inbound and outbound goods and vehicles. Disruptive technologies such as IoT devices are enabling autonomous equipment to drive effective monitoring of cargo and tracking of journeys.
Foreword by the WTO Director General
We live in a time of rapid technological change that has the possibility of profoundly altering the conduct of international trade. For many people keeping up to date with the latest technology and fully understanding its implications can be daunting. This report will help illuminate the so-called “disruptive technologies” that are most relevant to border management as well as assist governments to better understand the challenges and benefits of their use by Customs.
Recommendations
This section provides a set of recommendations regarding the introduction and scaling up of technologies by Customs. These recommendations were provided by Customs the private sector and academia in discussions held on different occasions in the last four years including at the October 2017 Permanent Technical Committee the annual dialogue held between the Private Sector Consultative Group and the Policy Commission in June 2018 the WCO technology conferences and regional workshops on disruptive technologies held in 2021 and 2022 the WTO 2018 research workshop and the 2019 and 2021 Global Trade and Blockchain Forums.
Acknowledgements
The updated Study Report on Disruptive Technologies (2022) is the result of the collective effort of the World Customs Organization (WCO) and the World Trade Organization (WTO) Secretariats working closely with the Member Customs administrations private sector representatives and other stakeholders. The Report was prepared by Milena Budimirovic Özlem Soysanlı Vyara Filipova and Lesego Mmolai from the WCO and Emmanuelle Ganne and Sheri Rosenow from the WTO. Research assistance was provided by Zakaria Imessaoudene from the WTO.
Background
Based on the proposal submitted by the WCO Permanent Technical Committee (PTC) delegates the Future of Customs topic was launched at the 207th/208th Sessions of the PTC in March 2015. This came as a result of discussions on the role of the PTC where it was agreed that the Committee would take a more active role in discussing strategic matters and future-oriented topics.
Introduction: “disruptive…” or (just) “emerging” technologies?
When we talk about “disruptive technologies” what exactly do we mean? According to the Cambridge Dictionary a disruptive technology is a new technology that completely changes the way things are done. Even though we cannot be certain which technologies will accomplish this in the future the public has over the past years broadly accepted “disruptive technologies” as a term which refers to blockchain the Internet of Things artificial intelligence virtual reality drones 3D printing and other cutting-edge technologies which are the subject of this Study Report.
Conclusion
The findings from the Study Report and the case studies provided in the Annex reflect a high level of Customs interest and activity in the testing and implementation of three groups of technologies in particular. Over half of the Members that responded to the WCO’s 2021 ACS are already using IoT AI and ML while only two respondents are currently deploying blockchain technology. Information on numerous pilot projects and PoCs shared by the Customs administrations and other stakeholders show the interest in expanding the use of these technologies as well as the confidence in the benefits they will bring to Customs in achieving its objectives and supporting cross-border trade.
Foreword by the WCO Secretary General
Understanding the need to keep abreast of developments in the field of disruptive technologies and to seek to understand the challenges and opportunities they bring to Customs and border management we are presenting an updated version of the Study Report on Disruptive Technologies. In the three years since it was first published it has served as an important source of information. However considering the numerous pilot projects and progress that has been achieved in the meantime we believe the time is right to provide an update to ensure that Members the trading community and other stakeholders are well informed about the latest developments on the ground that can further support implementation of WCO standards such as the Revised Kyoto Convention.
Cross-border Paperless Trade Toolkit
Using electronic documents and transactions can speed up and increase trade. Electronic messages can eliminate the need to enter data into a computer manually at each supply chain checkpoint and can provide opportunities for the potential reuse of data. This toolkit aims at raising awareness of the technical and legal tools to be called upon to adopt cross-border paperless trade systems and national single windows.
How to use this toolkit
This toolkit aims at raising awareness of the technical and legal tools to be called upon to adopt cross-border paperless trade systems and national single windows (NSWs).
Introduction
Using electronic documents and transactions can speed up and increase trade. Electronic messages can eliminate the need to enter data into a computer manually at each supply chain checkpoint and can provide opportunities for the potential reuse of data.