With technology disruption everything will change. And the landscape of global trade and compliance will irreversibly change as well.

1. The Future of Trading Across
Borders
When Automata Replace Customs Officers
Robert Zeldy
21 June 2018

2. Page 2
The Future of International Supply Chains
Automated supply chains:
► “Intelligent Packaging” for GPS tracking and unauthorized access notification
► RFID-tag identification of sensitive goods
► “Blockchain”-based transaction history in the supply chain
► Automatically created reports and declarations during interaction with
governmental information systems of customs and border agencies

3. Page 3
«Internet of Things» and global supply chains
► 96% of US retailers are deploying RFID-tags on
apparel (Auburn University RFID Lab, 2016)
► DHL SmartSensor technology monitors locations and
access to goods in packaging unit. The sensors
record any changes in levels of lighting, parameters
of environment (e.g., humidity and temperature) and
shock impacts (DHL Trend Research, 2015)
► Russian customs and tax authorities implemented
mandatory RFID-tagging of fur and footwear imports
and retail

4. Page 4
Blockchain appliactions in international supply chains
► December 2017 – Samsung SDS successfully
implemented 7-months pilot of the application of
blockchain technology. Data on location, temperature
and humidity of the food product was relayed to the
ledger through IoT (internet of things) devices
► IBM and Maersk jointly run the TradeLens global
trade platform, delivering based on blockchain tech:
► Exchange of data among shippers, ports, customs, banks and
other participants of supply chain
► Tracking of international consignments
► Replacement of paper shipping documentation with secure digital
records

5. Page 5
AI and robotics
“Blockchain-based” customs processing - Korea
► A joint project of customs authorities, logistic agents and e-
commerce actors
► Blockchain-based customs clearance system pilot
► Automatic completion and processing of customs declarations
Automated release of goods - Moldova
► Automated confirmation of customs declaration, where approval
for release of goods is granted by customs IT system without
direct involvement of a customs officer

6. Page 6
Key components of a “future” customs
Pre-arrival customs
clearance
“Single window” principle
Automated examination
and registration of
customs declarations
Automated
distribution
of customs
declarations
Multichannel
customs clearance
Automated release of goods
Centralized
customs clearance Authorized Economic Operators
Centers of excellence Risk oriented
post-clearance audit
Real-time online
monitoring of supply chain

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