Trading Places

How can customs agencies secure trade in the digital world?The world of trade is being transformed. Consumers and businesses are switching from physical goods to the digital world. The traditional supply chain, how goods are made, shipped, stored and consumed is evolving fast. Customs agencies must adapt quickly if they are to continue securing borders.

Media such as books and CD have largely gone digital and now new disruptive technologies such as 3D printing are changing traditional manufacturing and supply chains. 3D printing allows people to create increasingly complex goods on site – from false teeth and hip replacements to clothing and electronic devices. Over the next decade, the 3D printing market is set to quadruple.

As the physical movement of goods evolves, customs agencies and border protection face significant challenges. To stay effective in the digital age, agencies must build partnerships with new stakeholders throughout the supply chain.

First, they must deal with manufacturers and consumers. As 3D printing technologies develop, allowing people to create illicit goods at home, agencies must develop strategies to protect intellectual property, limit illicit trade and prevent illegal weapons.

Second, agencies must work with the new logistics providers. In the digital age, ports, warehouses and traditional carriers are being replaced by servers, digital warehouses and internet service providers. Agencies must build new partnerships to help identify and intercept illicit digital goods.

Lastly, agencies must work with the new facilitators, payment networks such as PayPal and online marketplaces as they replace trade finance specialists and banks. Agencies must formalise the processing of customs duties and re-imagine borders that are now defined by the location of someone’s computer.

The range and sophistication of goods created with digital technology will continue to grow. To continue to secure trade successfully customs agencies must build links with these new stakeholders. By taking urgent action, customs agencies can set the agenda and take a leading role in how we secure the new digital supply chain—delivering public service for the future.

About Delivering Public Service for the Future What does it take to deliver public service for the future? Public service leaders must embrace four structural shifts – advancing toward personalized services, insight-driven operations, a public entrepreneurship mindset and a cross-agency commitment to mission productivity. By making these shifts, leaders can support flourishing societies, safe, secure nations and economic vitality for citizens in a digital world – delivering public service for the future.

About Accenture Accenture is a global management consulting, technology services and outsourcing company, with more than 336,000 people serving clients in more than 120 countries. Combining unparalleled experience, comprehensive capabilities across all industries and business functions, and extensive research on the world’s most successful companies, Accenture collaborates with clients to help them become high-performance businesses and governments. The company generated net revenues of US$30.0 billion for the fiscal year ended Aug. 31, 2014. Its home page is www.accenture.com.

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