Asiapacific Customs Adopts Tech for Smarter Borders

The WCO Asia Pacific region launched a series of workshops on disruptive technologies, focusing on the application of technologies like blockchain, AI, and IoT in customs. The conference aims to share experiences, gather feedback, update WCO related research reports, and promote international cooperation, technology standardization, regulatory improvement, and talent development to jointly build smart customs. The goal is to leverage these technologies to enhance trade facilitation and improve customs efficiency and effectiveness.
Asiapacific Customs Adopts Tech for Smarter Borders

As global trade undergoes profound transformation, customs authorities worldwide are exploring how to leverage disruptive technologies to enhance efficiency and security. The World Customs Organization (WCO) Asia Pacific region recently launched a series of knowledge-sharing workshops to facilitate innovation in customs operations.

Workshop Overview: Collaborative Approach to Modernization

From March 22-24, 2021, the WCO Asia Pacific region successfully conducted its first online workshop on disruptive technologies, marking the beginning of this important initiative. Supported by the WCO Asia Pacific Regional Office for Capacity Building (ROCB) with funding from the China Customs Cooperation Fund (CCF), the event brought together over 50 representatives from 17 member customs administrations across the region.

The workshop featured participation from diverse stakeholders including government agencies, international organizations such as WTO, IMO, ISO, and UNCITRAL, along with private sector solution providers and academic experts. The primary objective was to gather insights for updating the WCO's research report on disruptive technologies while facilitating knowledge exchange about innovative applications in customs operations.

Key Focus Areas: Practical Applications of Emerging Technologies

The discussions centered on several cutting-edge technologies with significant potential for customs modernization:

Blockchain: Building Trust in Trade Ecosystems

Blockchain's decentralized, immutable, and transparent nature offers transformative possibilities for customs operations:

  • Origin Verification: Tracking production and supply chains to combat fraudulent origin claims
  • Trade Finance: Streamlining processes and reducing costs through distributed ledger technology
  • Supply Chain Visibility: Enhancing transparency and risk management across logistics networks
  • IP Protection: Securing intellectual property rights and combating counterfeit goods

Implementation challenges include data privacy concerns, standardization requirements, and the need for appropriate regulatory frameworks.

Artificial Intelligence: Enhancing Risk Management

AI and machine learning applications discussed included:

  • Predictive risk assessment using historical data analysis
  • Automated fraud detection for identifying false declarations
  • Computer vision for cargo inspection and classification
  • Natural language processing for intelligent customer service

Key challenges involve ensuring data quality, maintaining algorithmic transparency, and developing technical competencies among customs personnel.

Internet of Things: Smart Monitoring Solutions

IoT applications demonstrated how connected devices could revolutionize customs operations:

  • Real-time cargo tracking and security monitoring
  • Temperature-controlled shipment supervision

International Standards: Foundation for Digital Trade

A dedicated session examined the critical role of international standards like the WCO Data Model in facilitating interoperability and paperless trade. Participants emphasized how standardized data exchange can reduce trade costs while improving regulatory coordination between customs and other government agencies.

Public-Private Partnerships: Accelerating Innovation

The workshop highlighted the importance of collaboration between customs administrations and private sector technology providers. Such partnerships can accelerate solution development while combining public sector oversight with private sector expertise and resources.

Strategic Recommendations

Participants developed several forward-looking recommendations:

  • Strengthening international cooperation on technology implementation
  • Developing unified technical standards for seamless data exchange
  • Establishing governance frameworks for responsible technology use
  • Investing in human capital development programs
  • Expanding public-private innovation partnerships

The WCO plans to continue this workshop series as part of its commitment to supporting customs modernization across the Asia Pacific region and globally.