SECOND CBP TEST OF BLOCKCHAIN TO FOCUSED ON IPR

At Alba Wheels Up International we are dedicated to service our customers in the apparel and consumer electronics vertical that are sensitive to IPR issues as they relate to import shipments for our customers. It was in this spirit that we participated in the CBP IPR Blockchain Proof of Concept successfully.

U.S. Customs and Border Protection conducted in September a second test of the potential use of blockchain technology, focusing on intellectual property rights.

A blockchain functions as a distributed ledger that records transactions in a verifiable way. Blockchain records are transparent to all who have access to the network but are decentralized across that network, making them difficult to corrupt. This security has made blockchain a potentially valuable technology for customs and trade-related transactions. Some supply chain and cross border management companies and organizations are testing how blockchain may add value to international trade flows, including tracking cargo containers, transferring shipping documents, and confirming cross-border payments.

In 2018 CBP tested the use of blockchain for origin certifications used to qualify goods for preferential treatment under NAFTA and CAFTA-DR. Potential benefits in the past POC were that use of the blockchain achieved much quicker communications between CBP and the trade, improved documentation, and expedited entry processing. Additional benefits included eliminating manual documentation requirements and duplicative data entry, early capture of potential issues, receipt of full data (certificate of origin, entity data, etc.) with the initial submission of the entry summary, enhanced targeting, easier access to and more direct communication with the importer, and easier access to back-up documentation when required.

Since then CBP has been working toward testing its ability to use blockchain to facilitate shipments based on known relationships between intellectual property rights holders and licensees and authorized importers. CBP discussed a “live fire” system test anticipated in September and an assessment of the associated legal, policy, technical, and operational issues will be conducted thereafter.