Industry Mostly Pleased with CBP Blockchain Test

Some participants in Customs and Border Protection’s proof of concept (POC) for blockchain using North American Free Trade Agreement and Central America Free Trade Agreement certificates like the results. Some in the trade business say it complicated things (see 1903070014). There's consensus the POC showed the technology deserves further consideration, said Emily Beline, senior attorney at FedEx. The trade industry gave "universal support" for CBP to continue in the blockchain realm, she told a Georgetown University law school event Friday. Vincent Annunziato, director of CBP’s Business Transformation and Innovation Division, said uploading some forms makes it instantaneous to later review them: "If we put out a request" to Walmart, for example, and "Walmart sends us the information, guess who's notified? The government, the broker, Walmart, they're all notified." That’s better than a document that requires someone to "look at it," he said. "I don't have to look at anything when I have digital data." Blockchain should cut times the data needs to be re-entered, Annunziato said. The moderator, Barnes Richardson lawyer Lawrence Friedman, agreed with an audience member there's some concern "as I think about my clients" on the blockchain creating new requirements that aren’t legally mandated. CBP is still examining how to go forward when weighing the "efficiencies gained," Annunziato said. "There may be scenarios where what we can do is keep it in a situation where it's not required but it's optional if available." Data in the blockchain isn't necessarily better because it’s there, said Christine McDaniel, senior research fellow at George Mason University's Mercatus Center. "The integrity of the data is as strong as the weakest link of the participants."