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THE APPLICATION OF BLOCKCHAIN
TECHNOLOGY TO CUSTOMS PROCESS

The Customs Department is in the process of implementing Blockchain technology in customs process for maritime shipment and now
consulting IBM Thailand Co. on TradeLens system.
TradeLens is a platform, jointly developed by IBM and Maersk, which adopts Blockchain technology to track maritime shipment,
customized to meet demands of shipping community. The system relies on “Smart Contract”, which allows maritime shipping stakeholders,
which are import and export operators, shipping companies, ports, the Customs Department, to jointly and more efficiently manage data and
documents. It facilitates information sharing with document structures that each group of stakeholders are required to provide inputs or
update information – an open-standard system for maritime shipment in which all parties can access data. Data integration is supported
by Blockchain technology, used in logistics industry, to increase transparency by offering collaborative management viewpoints to
all related parties, without omitting personal details, and facilitating real-time access to information.
1. Objectives - to track shipping status, clearance will be analyzed in the customs cooperate in developing data linkage and
verify details of shipping containers as computer system and fed into TradeLens exchange with Tradelens system. To
soon as they depart the port of origin, system both for imports and exports via ensure that the Customs Department can
arrive at the destination port and are maritime shipment). support data exchange across the systems
delivered to their final destination. Relevant 3. Membership - the Customs Department efficiently, safely, and promptly, according
parties include import and export operators, will have to sign 3 agreements to become to operational standards, there will be
shipping companies, ports, and the Customs a member of TradeLens: Cloud Service expenses in this stage for provision of
Department. These product stakeholders Agreement, TradeLens Platform Network resources both in terms of hardware and
within the international supply chain will Member and TradeLens Data Sharing software and cost in developping an
be granted rights to promptly access Specification. There will be a testing application for data exchange between
shipping information, such as date of period, known as Proof of Concept (POC) the Customs Department and TradeLens.
receipt, or a particular customs procedure allowing pilot access via TradeLens 4. Benefits for Private and Public
document. In contrast to the old paper-based website with no operational fee and Sectors
operations of shipping business, information lasting for a maximum of four months. 4.1 increase efficiency of Pre-arrival
can now be added and stored in Blockchain. During this stage, the Customs Department customs clearance
2. Customs Work Process - the Customs and IBM will jointly determine the scope 4.2 facilitate trade and promote maritime
Department’s role is to verify data and of implementation to test the system; shipping system
monitor activities throughout the whole there is no cost charged to the Customs 4.3 increase efficiency of risk management
shipping route made via pilot shipping department and no data sent into TradeLens 4.4 build customer satisfaction
ports, then submit information of the system. (If the Customs Department wish 4.5 Save cost and time and create
containers’ clearance status once the to apply the data in POC stage to e-Customs transparency
containers are no longer in custody of system, the Department will have to bear 5. Pilot Implementing Agency Laem
the customs (during the go-live or the the expenses on linkage development.) Chabang Port Customs Office
actual launching, information such as During the go-live, or the actual launch,
container number or date and time of the Customs Department and IBM will

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