For determining the correctness of an import declaration lodged by a declarant within international shipping, customs authorities rely on manual cross-validation of the declaration with other trade documents. However, the sheer volume of import declarations lodged annually makes it impossible to manually cross-validate each declaration. Smart contracts have the potential to automatically aggregate relevant information from blockchain-based ledgers for lodging and cross-validation. In this paper we explore how such smart contract could be implemented. We demonstrate that a smart import declaration can be used to automatically aggregate information from different sources (e.g., pro forma invoice data elements stored on the blockchain ledger). However, technical and organizational considerations that are inherent to blockchain technology need to be addressed for the smart import declaration to be acceptable for both customs authorities and declarants. It is therefore suggested that future work focusses on data standards required to enable automatic aggregation of relevant trade information and the generation of the import declaration and governance of the smart import declaration by customs authorities to assure correctness.
In global supply chains, information about transactions resides in fragmented pockets within business and government systems. The lack of reliable, accurate and complete information makes it hard to detect risks (such as safety, security, compliance and commercial risks) and at the same time makes international trade inefficient. The introduction of digital infrastructures that transcend organizational and system domains is driven by the prospect of reducing the fragmentation of information, thereby enabling improved security and efficiency in the trading process. This article develops a digital trade infrastructure framework through an empirically grounded analysis of four digital infrastructures in the trade domain, using the conceptual lens of digital infrastructure.
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