The U.S. Customs and Border Protection are soon planning to install a new blockchain based system which will help them track the goods and that import certificates as well as for physical components.
CBP is ready to understand and test the blockchain technology and see how it can be used effectively to make security measures strict. The trial focuses on verifying the imported goods with the help of North American Free Trade Agreement – NAFTA and Central American Free Trade Agreement – CAFTA.
Vincent Annunziato, Director of CBP Business Transformation and Innovation Division, announces the “live fire testing” that the agency has recently started using the blockchain platform.
The objective of this Test
The main motive behind this trial is to confirm and certify claims made the imported goods about their place of origin and manufacturing. The second main objective for conducting this addition is to make sure that the foreign clients are abiding by their work according to the rules that are set by NAFTA and CAFTA.
It was in 2018 Trade Symposium that Annunziato discussed this opportunity and why there is the need for this kind of system to be in place. He says that it is important to consider this kind of intervention especially when it about the importation data entry. The matters might be simple if it is only about shipping. But for CBP it is about making sure about the authenticity of their certificates by their numerous agencies.
Even though their agencies are doing the best they can, he still believes that handling such details through a blockchain platform might be the right way to go. In this way, they can also expect support from the government as they will ensure that everything is legal and honest as it should be. Using this technology will give them the genuine surety that the industry needs, especially in the evolving times like today.
Vincent Annunziato released an official statement earlier this week to confirm that this new system relying on blockchain will implement from September 2018. With the addition of this new platform, the officials are also deciding to increase the security measures of the importation. They are also deciding to include the check for trademarks on goods and examine the physical properties of all such imported goods.
For a time-saving efficiency, CBP is looking to get the maximum results out of its alliance with blockchain by making it a mobile application to save time for checking the same information every time and going through a long scan. It will, in turn, save money and time for the agency officials.
Moreover, CBP is also collaborating with Customs Advisory Committee to work to maximize the use of blockchain technology to assess the intellectual property. For instance, the rights of grating license to a company may or may not suggest its right for the company to license out. All such details can be managed generationally with the use of blockchain technology.
So this new venture isn’t only beneficial for the government to keep records straight for the company, but it is also for the worthwhile and honest working of the rights holders.