1. Compliant trade and seamless border crossings are at the forefront of the Open Customs Blockchain Working Group

Compliant trade and seamless border crossings are at the forefront of the Open Customs Blockchain Working Group

Transparency, trust and efficiency of data exchange in customs are crucial for a seamless process. The Working Group Open Customs Blockchain has been working on ensuring that. This article explores the progress made within the Goods Passport ID (GPID) project in 2024 and the plans ahead, including a pilot trial between ALS Customs Services and UK HMRC, as well as potential future projects they want to work on next.
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The Open Customs Blockchain Working Group aims to develop open source solutions that strengthen the trust and transparency of data used in customs processes. With a focus on authority needs, they want to improve the integration of customs and logistics processes using blockchain and AI technologies. This allows authorities to verify the authenticity of the information exchanged efficiently.

“With over 40 years of experience in Customs processes and Logistics, I want to help leverage the latest technologies to reduce the burden of border delays in our sector. I am convinced that we can make borders invisible, and importantly that we can achieve this using open source processes, software, and protocols. Collaboration is the only way.”

Elaborates Michael Douglas, Senior Consultant -Customs Technology Services at ALS Customs Service

GPID project and milestones

The participants are actively working on the GPID project:
The Goods Passport ID (GPID) is a key data set provided 1st hand by suppliers that enables customs authorities to prevent duty evasion and movement of prohibited goods. As a result, interventions by authorities at the border are reduced or eliminated.

The core concept of GPID is currently part of the pilot trial between ALS Customs Services and UK HMRC at the request of the UK Govt’s Policy Department. The project aims to develop an open standard and methodology that allows supply chain actors to provide verifiably first-hand key data for customs processes to both downstream supply chain stakeholders and customs authorities. If successful, this pilot and the insights gained may lead to significant changes in EU-UK border processes.

Looking back at their progress, the Open Customs Blockchain Working Group achieved the following:

  • Selection for the European Blockchain Sandbox initiative by the European Commission, focusing on DLT and Blockchain use cases across all industries.
  • Engaging in ongoing discussions with various authorities to review and enhance the proposed solutions.
  • A pilot test run is available, ready for real-world testing of the developed solutions.

Future projects and next steps

In 2025, the Working Group plans to work on two new topics:

  • Potential trial with UK’s HMRC: To use data from cross-border trade between companies. This data would be first-hand and trusted, available before border processes begin and ahead of the physical arrival of goods at the border crossing. In some cases, this could enable seamless border crossings without delays. The project focuses on developing an open standard and methodology that allows supply chain actors to provide verifiable, firsthand key data to both downstream stakeholders and customs authorities.

  • ITEA Proposal for Trade Compliance Assistant: The TCA (Trade Compliance Assistant) is a proposed suite of tools leveraging the latest AI technologies to provide supply chain stakeholders with the ability to comply with trade and customs regulations across multiple countries and territories. Combined consortiums in the UK, NL, DE, TR, KR and FI (which include OLF members and Fraunhofer IML) are seeking funding from ITEA (part of EUREKA) to collaborate on state-of-the-art solutions for Trade Compliance. These solutions would include a “Trade Regulations Tool” that can source and interpret regulations to answer compliance queries and “origin to destination” compliance tracking and open-protocol digitised documents.

“Cross-border trade is complicated enough as it is. We want to make life easier for both sides, companies and authorities, by using technology that already exists to better distribute and utilise data we already have. Trustworthy, verifiable and, of course, open source.”

Highlights Roman Koller, Research Associate at Fraunhofer IML.

The Working Group is currently looking for authorities willing to achieve the next step in the digitalisation of border control. Customs authorities are invited to participate and give feedback. The group meets virtually every first Monday of the month.

Members of the group include the following companies as of February 2025: AEB, ALS(co-lead), BLG, Cargo Sign, Dachser, duisport, Fraunhofer IML(co-lead), Gebruder Weiss, LKW Walter, and Rhenus Logistics.

Learn more on our website: https://openlogisticsfoundation.org/foundation-projects/working-group-open-customs-blockchain/

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