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Emmanuelle GanneSenior AnalystWorld Trade [email protected]
Digitalization of trade documents and the use of blockchain technology in origin-requirements and
trade documentation
I. QUICK INTRO TO BLOCKCHAIN
Decentralized Peer-to-peer
Distributed
Highly secure
Tamper-proof
Time stamped
Automation
Linked
Cryptography
Digital
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DECENTRALIZED AND DISTRIBUTED
Source: Ganne E. (2018), Can Blockchain Revolutionize international Trade?
5
Blockchain
Amy sends an asset to Bob
6
Source: Ganne (2018)
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KEY FEATURES
Automation
Time-stamping
Peer-to-peer
Transfer of
assets
Greater security
Smart contracts
TRACEABILITY
TRUST
DIFFERENT TECHNOLOGIES
8
BLOCKCHAIN VS DISTRIBUTED LEDGER TECHNOLOGIES
vs
vs
9
Source: Hileman, Garrick and Michel Rauchs (2017), “Global Blockchain Benchmarking Study”, Cambridge Centre for Alternative Finance.
DIFFERENT TYPES OF BLOCKCHAINS
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DIFFERENT DEGREES OF DECENTRALIZATION
Source: Ganne (2018)
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DIFFERENT CHARACTERISTICS
Based on November 2017 data. Source: Ohnesorge (2018)
Trade is labour- and paper-intensive and involves multiple actors
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II. A GAME CHANGER FOR TRADE DOCUMENTATION?
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BCO / NVO FFW / CHB / 3PL Inland Transportation
Customs / Government Authorities Ports / Terminals Ocean
Carriers FFW / CHB / 3PL Inland Transportation BCO / NVOPorts / Terminals Customs / Government
Authorities
SHIPPING MILESTONES AND SHIPMENT DATA
STRUCTURED AND UNSTRUCTURED DOCUMENTS
TRADELENS BLOCKCHAIN BUSINESS NETWORK
TRADELENS PLATFORM
Star
t con
tain
er tr
acki
ng
Cont
aine
r tra
ckin
g en
ded
Empt
y co
ntai
ner p
icke
d up
from
de
pot
ETA
empt
y co
ntai
ner a
t stu
ffing
sit
e
ATA
Empt
y co
ntai
ner a
t stu
ffing
sit
e
Cont
aine
r stu
ffing
com
plet
ed a
t in
land
loca
tion
VGM
subm
itted
Pack
ed co
ntai
ner l
oade
d
Cont
aine
r sea
led
ATD
Pack
ed c
onta
iner
from
st
uffin
g sit
e
Estim
ated
gat
e in
for p
acke
d co
ntai
ner a
t ter
min
al e
xpor
t
Gat
e in
full
at te
rmin
al e
xpor
t
ETD
pack
ed c
onta
iner
from
exp
ort
term
inal
ATA
empt
y co
ntai
ner a
t dep
ot
Expo
rt d
ocum
enta
tion
clea
red
Cont
aine
r rea
dy to
load
ATD
pack
ed c
onta
iner
from
ex
port
term
inal
ETA
pack
ed c
onta
iner
at i
mpo
rt
term
inal
Tem
pera
ture
upd
ate
Estim
ated
disc
harg
e tim
e fo
r pac
ked
cont
aine
r at i
mpo
rt te
rmin
al
Impo
rt d
ocum
enta
tion
clea
red
Cont
aine
r sel
ecte
d fo
r ins
pect
ion
ATA
pack
ed c
onta
iner
at i
mpo
rt
term
inal
Pack
ed co
ntai
ner d
ischa
rged
at
impo
rt te
rmin
al
Estim
ated
gat
e ou
t of p
acke
d co
ntai
ner f
rom
term
inal
impo
rt
Gat
e ou
t pac
ked
cont
aine
r fro
m
term
inal
impo
rt
ETA
pack
ed c
onta
iner
at s
trip
ping
lo
catio
n
ATA
pack
ed c
onta
iner
at s
trip
ping
lo
catio
n
Seal
rem
oved
Pack
ed co
ntai
ner s
trip
ped
at
inla
nd lo
catio
n
Empt
y co
ntai
ner r
eady
for
pick
-up
Empt
y co
ntai
ner p
icke
d up
from
st
rippi
ng lo
catio
n
Packing List
Bill of Lading
Export Documentation
Advance Declaration
Pre-Paid Invoice
Certificate of Origin
Shipping Instructions
ISF
Geography Specific Certificate
Dangerous Goods Declaration
Cargo Specific Certificate
Commercial InvoiceCustoms
ClearanceImport Documentation
Not exhaustive list of milestones managed by platform
Not exhaustive list of documents managed by platform
Shipping
Source: Tradelens
14Source: Tradelens
Increase access to single source information needed to efficiently deliver and managed finance and trade insurance
Real-time visibility of inbound and outbound operations
Improve customer service and reduce network integration costs and revenue leakage
Reduce paperwork and improve risk assessment
Receive real-time and accurate updates on vessel arrivals, improve utilization of assets
Identify and proactively manage unexpected events, reduce surcharges and stockouts
Obtain access to greater death of real-time information with less work, improve customer satisfaction
PORTS / TERMINAL OPERATORS
OCEAN CARRIERS
GOVERNMENT AUTHORITIES
INLAND PROVIDERS
FREIGHTFORWARDERS / 3PL
SHIPPERS / BENEFICIAL CARGO OWNERS
FINANCIAL SERVICES
DLT projects in trade
Source: Ganne et al. (2019), Blockchain and DLT in Trade: A Reality Check
Certificates of origin
Source: EssDocs
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Certificates of origin
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United Kingdom
UAE/Dubai
Australia
South Korea
And more…
Kenya
US
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NAFTA/CAFTA Proof of Concept – To “test the feasibility of the technology for receiving CO data and conducting FTA origin certifications”
Benefits found: Almost instantaneous communications between CBP and trade, improved documentation of
receipt, and expedited processing for CBP. Other benefits included:
Eliminated manual documentation requirements and duplicative data entry;Potential issues captured early on;Full data (CO, entity data, etc.) received with initial submission of entry summary;Enhanced targeting;Easier access to importer/more direct communication; andEasier access to back-up documentation when required.
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Great potential to reduce costs
… but technology is only a toolSource: Steemit
Key issues to address
Beyond cost reductions
• Can one day Blockchain replace certificates of origin?
Would require:- End-to-end supply chain visibility- Agreement on key data elements
23
• Great potential
• Need to develop the right policy environment to promote blockchain use
• Need for an international approach
Thank you for your attention!
To know more:
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PUBLICATIONS
2018 Blockchain research workshop:https://www.wto.org/english/res_e/reser_e/workshop_blockchain_271118_e.htm
2019: Global Trade and Blockchain Forumhttps://www.wto.org/english/res_e/reser_e/workshop_blockchain_21219_e.htm
EVENTS