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The software provider AEB SE and the Fraunhofer Institute for Material Flow and Logistics IML are working together on a blockchain-based customs solution. The aim of the project, which is part of the Blockchain Europe research initiative, is to develop end-to-end digital and largely automated customs processing.

The partners want to make all customs documents available in digital form and render the paper form obsolete. The blockchain technology used should make it possible to securely store digital processes and documents for all parties involved and - linked to the physical flow of goods - to update them. This means that their content can be traced at any time by exporters (consignors), importers (consignees), logistics partners, transport companies, customs brokers and customs authorities, for example.

First step: digitization of the export accompanying document

The first step of the project focuses on the export accompanying document. With this document, the responsible customs office confirms that the export is permitted and sends it to the exporter as a PDF. The exporter prints out the document and encloses it with the export shipment. The recipient of the goods in the third country is usually not digitally involved in the export process and only receives much of the relevant information with the goods, often in paper form. They often have to enter the data again digitally for their import declaration.

"Due to the numerous parties involved in the customs process, the previous paper-based procedure for the export accompanying document often causes a great deal of effort," explains Dr. Ulrich Lison, foreign trade expert and member of the AEB Board of Directors. "This is exactly where our project comes in and aims to digitalize the export accompanying document throughout the entire process." This will give all parties involved transparency about the handling process, reduce manual effort and allow time-consuming on-site checks to be moved to the digital space.

Interactive development process

The project is still at a relatively early stage. In order to achieve initial results quickly, the partners are relying on an agile approach. "We want to digitize an initial prototype customs process using an agile SCRUM process," explains Roman Koller, sub-project manager for customs at Blockchain Europe.

For further implementation, Blockchain Europe is looking for other companies that want to participate - including companies affected by Brexit. The UK's exit from the EU and the resulting need for export and import declarations has drastically increased the importance of customs in the movement of goods with the UK.

"We are pleased to welcome both customs clearance professionals and companies that are coming into contact with the challenges of customs clearance in foreign trade for the first time as a result of Brexit, for example," explains Roman Koller. "Together with Blockchain Europe, companies can make a contribution to end-to-end digital customs clearance and test the planned prototype processes in practice as validation partners. Perhaps Brexit will provide an additional impetus for a digitalization push after all."

The first opportunity to gain more insights into the concept and discuss the blockchain-based approach will be at the online event "Get Connected" on June 22, 2021. AEB and Fraunhofer IML will jointly present the Blockchain Europe project in two sessions.