Exponential e-commerce growth in recent years means that customs administrations have to deal with vast and ever-increasing amounts of data. This has led to more demand for digital technologies, which are changing the way customs works. As well as automating their procedures, customs agencies around the globe are using their valuable data and digital processes to better serve their stakeholders.
The role of customs is more important than ever before as global supply chains become more complex and the world begins to recover economically from the pandemic. In 2021, we’ve seen the impact that a disrupted supply chain can have on global trade, with congestion causing shortages of goods the world over.
The aim of smart customs mission
These disruptions bring into focus the importance of digitalisation of these processes; the goal of smart customs is to minimise the resources consumed, including customs clearance time and costs, while managing inbound and outbound goods and vehicles. The aim is to be as efficient, convenient, and economical as possible.
To achieve this, the digital transformation of customs relies on several key technologies. Data analytics is rapidly becoming more important, enabling customs organisations to glean important insights. Advanced algorithms can also be used to analyse unstructured data while predictive analytics can help to identify patterns and trends.
The role of customs is more important than ever before as global supply chains become more complex and the world begins to recover economically from the pandemic
Taking a data-driven approach is vital and the World Customs Organisation (WCO) has already initiated several efforts to promote the use of data analytics in recent years.
Another key technology is artificial intelligence (AI). The growth of cloud computing and large-scale availability of processing power has led to a rise in the use of AI in recent years. AI presents a huge opportunity in customs, enabling officials to make sense of ever-increasing amounts of data.
AI can also assist in processing x-ray images of cargo. Container shipping means that there is a need for non-intrusive inspection (NII), and x-ray scanning is a key element in this process. However, analysing the images is a demanding task and human errors caused by fatigue inevitably creep in. Research is currently underway to develop AI-based image identification and risk assessment to speed up this process and make it more efficient.
IoT technology is another area that is absolutely key to the future of smart customs as it enables the effective monitoring of cargo and tracking of journeys. Sensors can be embedded in both vehicles and containers, as well as at critical checkpoints, and can be used in a number of different ways.
The goal of smart customs is to minimise the resources consumed, including customs clearance time and costs, while managing inbound and outbound goods and vehicles
X-ray scanners can use IoT to communicate manifest data directly to e-seals on containers, while IoT sensors can also be used to enable more efficient flow of vehicles in customs control areas. What’s more, IoT can be used to detect fraud and other crimes, including tampering in containers and cargo that isn’t moving along approved routes.
Robotic process automation (RPA) is another key digital tool, involving a machine or software that performs simple, repeatable tasks at high volumes, with much greater accuracy than humans. Not only can RPA help to speed up processes such as data verification, it can also mimic a human worker by adapting to changing circumstances. It can also help to detect and resolve common errors that would otherwise take up considerable time and human resources.
Many of the digital innovations in intelligent customs are enabled by cloud computing, enabling agencies more flexibility in running collaborative and on-demand systems. It also means that new applications can be developed much faster. Not only does cloud computing allow for a more robust infrastructure, it can also be more financially efficient.
Blockchain-based technology is also set to be a game-changer for customs, particularly for smart contracts. These have the potential to improve the efficiency and speed of cross-border supply chains, while also enabling a digital paper chain of unalterable records. While a lack of governance standards and limited interoperability currently limit its widespread adoption, blockchain is rapidly becoming more appealing and is the subject of numerous pilot projects.
Smart ports in action
While many of these technologies have yet to be adopted on a wider scale, some forward-thinking ports are already embracing the future. Supported by Huawei technology, Liantang Port in China is already using digital processing, automatic operations, and intelligent devices to boost its services. Connecting the busy metropolis of Shenzhen with nearby Hong Kong, the port sees nearly 10,000 vehicles travelling back and forth every single day. The port uses a Huawei-powered one-stop information system which means that vehicles can be inspected and cleared to cross the border with a single checkpoint visit, slashing the times it takes for customs clearance.
Huawei is fully committed to supporting the future of intelligent customs, and launching its Smart Port Solution at the recent HUAWEI CONNECT 2021. Forming part of its Smart Customs Integrated Solution, the Smart Port Solution enables data management capabilities for building safe, efficient, and intelligent ports.
Customs agency leaders must continue to embrace digital transformation to boost efficiencies and effectiveness and shape the smart supply chain of the future
These world-class smart ports make cross-border trade safer and more convenient. Huawei Smart Port Solution is powered by several technologies including converged communications, advanced algorithms, big data, and cloud computing. The seamless platform enables customs authorities to focus on four key areas: intelligent customs clearance, visualised collaborative command, convenient clearance services, and efficient management.
The pandemic has highlighted the critical role that customs play in enabling global trade. Customs agency leaders must continue to embrace digital transformation in order to boost efficiencies and effectiveness and shape the smart supply chain of the future. Huawei is set to continue to innovate and develop technology to support the future of intelligent customs and smart ports. By doing this, the company will help to make cross-border trade safer and more convenient.
To find out more about how Huawei technology is helping to power the future of intelligent customs and smart ports, visit their smart customs solution page.
To achieve this, the digital transformation of customs relies on several key technologies. Data analytics is rapidly becoming more important, enabling customs organisations to glean important insights. Advanced algorithms can also be used to analyse unstructured data while predictive analytics can help to identify patterns and trends.
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