The global journey toward seamless customs clearance using AI is progressing, the speed with which we’re traveling down that road is increasing – and rapidly – but it’s still in various stages of development and implementation across different regions.
It was a topic that got a lot of airtime at the 2024 C4DTI Digital Trade Conference, but the reality of which has been thrown into light by the recent WCO Smart Customs Project – Smart Customs Survey.
Launched in April 2024, the Smart Customs Survey aimed to assess the global adoption of technology and has generated some interesting results recognizing the challenge of technology uptake by those working with customs.
Current adoption
When WCO members were asked about the solutions they have currently adopted it was big data and data analytics (DA) were the most frequently deployed (20%), followed by cloud computing (15.5%), biometrics (12%), artificial intelligence/machine learning and drones (11%); and geospatial mapping (10%).
The comparative adoption status of these different technologies also demonstrates the prevalence of development areas – breaking each technology down into those currently adopted, under-development, and planned. It was AI/ML that had the biggest development potential (under-development and planned), followed by big data and DA, blockchain and cloud computing. AI/ML was the technology with the highest expected impact but with a higher level of difficulty in adoption.
AI and customs clearance
While the use of AI/ML adoption hasn’t yet reached the levels of data and data analytics (DA), there is no denying the implementation of automated customs technology is improving performance, especially in trade facilitation, economic competitiveness, enforcement, and security.
Those surveyed reported:
- Smoother movement of goods
- Quality of services
- Use of technical targeting and detection
- Paperless trade
- Trust in the relationship with trade
- Fight against counterfeit goods and piracy
- Clearance and delivery in e-commerce
- Compliance with classification rules
- Fairer revenue collection
- Advanced level of integrity
Alongside these benefits, participants also highlighted technical skills; cybersecurity awareness; IT policy and governance; and strategic planning and change management as being the top four areas where capacity-building was needed; these areas were seen as critical for ensuring the successful implementation and use of technology.
The WCO’s next steps to implementation across four key areas
Technical skills I Develop specific competencies required to implement, maintain, and optimize new technology solutions effectively.
Cybersecurity awareness I Understand and mitigate threats and vulnerabilities associated with new technologies to protect data and systems from cyberattacks.
IT policy and governance I Create and enforce policies and frameworks to govern technology use in support of the administration’s strategic goals, ensuring compliance and security within the administration. These policies ensure accountability in technology implementation, guide the allocation of resources to critical technology projects, and support innovation.
Strategic planning and change management I Align technology adoption with organizational goals and manage the transition process to ensure stakeholder engagement and support.
What’s next?
Dave Robbins, CEO and Co-founder of Azarc said: “As highlighted in the 2024 WCO Customs Survey, the adoption of technology is key to enhancing customs operations; this is exactly why the world-class team at Azarc brought our award-winning automated customs clearance solution – Rune – to the market. As a solution, Rune is perfectly aligned with the findings of the WCO report which further demonstrates that the demand for support to optimize customs clearance is only growing. Integrating cutting-edge technology into customs clearance processes, Azarc can not only streamline trade but also strengthen security measures, ensuring a safer and more competitive environment for global commerce, significantly enhancing your employees’ capabilities and job satisfaction in the process.”
For the future of customs clearance, automation is certainly where it’s at. As international adoption and collaboration improves, standardization is the next milestone in achieving efficient customs processes globally.
Get in touch and book a chat with our sales team today – or book in for a demo – to find out more.
