US Customs Agency Hopes to Evaluate Blockchain Pilot by December

Representatives from U.S. Customs and Border Protection say they hope to evaluate its blockchain tech trial and produce recommendations by December.

AccessTimeIconOct 11, 2018 at 8:00 a.m. UTC
Updated May 9, 2023 at 3:03 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global hub for everything crypto, blockchain and Web3.Register Now

The U.S. Customs and Border Protection (CBP) plans to evaluate its foray into blockchain technology by the end of the year.

Members of a government advisory group, the Commercial Customs Operations Advisory Committee (COAC), met on October 3 to advocate for regulatory reform around different trade-focused areas, with "emerging technologies" coming up as a point of conversation.

  • What South Korea's Latest Election Means for Crypto Adoption in the Country
    00:38
    What South Korea's Latest Election Means for Crypto Adoption in the Country
  • Hong Kong Approving an Ether ETF Could Be a 'Surprise,' Analyst Says
    00:52
    Hong Kong Approving an Ether ETF Could Be a 'Surprise,' Analyst Says
  • What South Korea's Elections Mean for Crypto; The Potential for Spot BTC and ETH ETFs in Hong Kong
    19:02
    What South Korea's Elections Mean for Crypto; The Potential for Spot BTC and ETH ETFs in Hong Kong
  • Would You Get Paid in Crypto?
    00:57
    Would You Get Paid in Crypto?
  • In particular, U.S. Customs and Border Protection (CBP) representatives said the agency has concluded its latest round of testing blockchain technology for supply chain management, according to a press release published Tuesday.

    CBP is working to determine if a blockchain-based platform can streamline the agency's efforts to track shipments around the world as part of the soon-to-be-replaced North American Free Trade Agreement (NAFTA) and the Central American Free Trade Agreement (CAFTA), as previously reported.

    Celeste Catano, global product manager at BluJay Solutions, a supply chain software company working with the agency, said CBP is currently evaluating its proposed use of blockchain technology, adding that "we hope to have some recommendations by the December meeting."

    "We just completed our testing last week on the blockchain solution for NAFTA and CAFTA verifications," Catano told the meeting's attendees.

    Members of the project met after last week's meeting to assess the test, including what can be improved and whether blockchain "is ... the right technology for these types of projects," she said.

    Testing underway

    CBP is one of a number of U.S. agencies looking at possible applications of blockchain, having detailed its "live fire" testing in August.

    Vincent Annunziato, director of the CBP's Automated Commercial Environment Business Office, explained during the October meeting that the agency is currently in the "proof-of-concept" phase, adding:

    "We've produced a hybrid system that allows public sharing of data and also maintains the security of that data. It's particularly important for keeping trade secrets and that's what this architecture is designed to do."

    That being said, the agency is proceeding cautiously and is only looking to provide a small level of funding at the moment.

    "If we find something that doesn't work, we don't invest anymore. If we find that it does work, then we move forward with confidence. This is new ground for us, so it's exciting," he said.

    Shipping image via Shutterstock

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.