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Open Logistics Foundation offers tamper-proof customs processes

[ July 18, 2024   //   ]

The Open Logistics Foundation is developing a Blockchain solution for transparent and tamper-proof customs clearance in the UK. The foundation, which is based in Dortmund, Germany, says that the Goods Passport ID (GPID) would be transparent and tamper-proof and help customs authorities, freight forwarders and traders ensure compliant trade.

The Open Logistics Foundation is an independent and neutral organisation that focuses on the development of open source solutions. Its Open Customs Blockchain Working Group has nine members: AEB, ALS Customs Services, Dachser, DHL, Duisport, Fraunhofer IML, IP Customs Solutions, LKW Walter and Rhenus Logistics.

A pilot project with EU and British authorities is already being planned.

The Foundation says that 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 goods shipped illegally. GPID would be a reliable passport for the secure flow of goods.

The GPID key data set would give digital, forgery-proof data processing during both the export and import process. Customs authorities, freight forwarders, sellers and buyers would receive the seller’s data record at an early stage, allowing authorities to check and prevent customs evasion directly.

The Working Group aims to promote cooperation with TAXUD, the Directorate-General for Taxation and Customs Union, and the customs authorities of EU and non-EU countries and has recently submitted proposals for a GPID pilot project to the UK and EU authorities. It has also been selected as one of the first 20 cohorts for a test case under a discussion led by the EU Commission together and Dutch, German and UK authorities and the EU’s TAXUD Directorate General.

Michael Douglas, customs technology consultant at ALS Customs Services and co-lead of the Open Customs Blockchain Working Group, said: “We are encouraging authorities to participate in a pilot project that would not require any financial investment or changes to their current systems. The concept proves that trusted, first-hand data can effectively reduce customs evasion and fraud.”

As well as GPID, The Foundation is also working on the ‘BORDER’ project, a data set for customs clearance and logistics processes.

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