With the Goods Passport ID (GPID), the Open Logistics Foundation's Open Customs Blockchain Working Group is developing a blockchain solution for transparent and tamper-proof customs clearance. The GPID supports customs authorities, freight forwarders and traders alike by ensuring compliant trade. The independent organisation works closely with renowned companies and authorities to make the cross-border flow of goods more efficient. A pilot project with EU and British authorities is already being planned.
The biggest problem in customs clearance is that the processes, or rather the data set used, are neither transparent nor trustworthy for the authorities. Even if only a few key pieces of data are manipulated, customs duties can be circumvented, and illegal shipments carried out. The Open Logistics Foundation's Goods Passport ID (GPID), a reliable passport for the secure flow of goods, is now available as a preventative measure. With this blockchain development, the Foundation aims to strengthen trust in customs processes and reduce interference by authorities.
Cooperation for optimized customs processes
The Open Logistics Foundation is an independent and neutral organisation that focuses on the development of open source solutions. There are various Working Groups within the Foundation, including the Open Customs Blockchain Working Group. This consists of nine members: AEB, ALS Customs Services, Dachser, DHL, duisport, Fraunhofer IML, IP Customs Solutions, LKW Walter and Rhenus Logistics. The focus is on digital data exchange and reduced delays at borders. Two projects are already underway: BORDER, a data set for efficient customs clearance and logistics processes, and GPID, which is specifically geared towards the needs of the authorities. The GPID key data set is the project that is currently being pushed forward and enables digital and forgery-proof data processing during both the export and import process. This benefits not only customs authorities, but also freight forwarders, sellers and buyers. As they now receive the seller's data record at an early stage, authorities can check the GPID to prevent customs evasion directly.
Pilot project submitted to British and EU authorities
The Working Group would like to promote cooperation with TAXUD, the Directorate-General for Taxation and Customs Union, and the customs authorities of EU and non-EU countries. To this end, the Open Customs Blockchain recently submitted proposals for a GPID pilot project with British and EU authorities. As part of the EBSI sandbox discussion led by the EU Commission together with Dutch, German and UK authorities and the Directorate General TAXUD, the Working Group was selected as one of the first 20 cohorts for a test case. "We are encouraging authorities to participate in a pilot project that would not require any financial investment or changes to their current systems," explains Michael Douglas, Customs Technology Consultant at ALS Customs Services and co-lead of the Open Customs Blockchain Working Group. "The concept proves that trusted, first-hand data can effectively reduce customs evasion and fraud."
