CBP to Begin NAFTA/CAFTA Blockchain ‘Proof of Concept’ Test

A “proof of concept” test set to begin in September will allow brainstorming and early stage testing on the use of blockchain technology in processes for the North American Free Trade Agreement and the Central America Free Trade Agreement, Vincent Annunziato, director of Customs and Border Protection’s Business Transformation and Innovation Division, told reporters last week at the CBP 2018 Trade Symposium in Atlanta. CBP will consider not only the technical capabilities of blockchain and any business benefits but also whether use of the technology fits with the agency’s regulatory and policy scheme. CBP will look at whether blockchain can be used in country of origin verification procedures, so the supplier can send origin information directly to CBP and the importer doesn’t have to worry about “tracking a piece of paper” from the carrier to the broker and into its own files. By the end of 2018, once the proof of concept is completed, CBP and trade community participants will put together an assessment and make recommendations based on the results of testing. CBP was planning to launch the test this fall after the Commercial Customs Operations Advisory Committee identified NAFTA and CAFTA origin procedures as a viable starting point. Annunziato distinguished the proof of concept from a pilot: proof of concept is intended to see if new technology works for specified uses, and once it’s complete the proof of concept will be taken down. Should CBP find a given use of blockchain promising, he said, it may then create a “more robust” pilot that works “within the confines” of any regulations and policies that needed to be changed and could lead to operational changes.