29 Feb Use of Blockchain in Single Window Customs Clearance in Air Cargo
Air Cargo is one among the most complex industries in the world. Well, this is given when it involves cross-border trade. Over the years, the airline industry was subject to abduction and security was at stake at several instances. Hence, it is essential that processes get complex and well documented. Anyhow, these documentations are manual and they in turn add burden to the stakeholders involved in the process. Especially, when it comes to customs clearance and issuance of Certificate of Origin, there is a high chance of document misplacement, malpractice and so on. Therefore, digitizing these operations are mandatory and at the same time ensures transparency. Over the years, we have seen the use of Artificial Intelligence, Machine Learning and recently we have seen the upcoming of Blockchain.
Blockchain is quite a robust technology and its robustness is taking it to places. Initially it was used to build Bitcoin, then it found its importance in healthcare and now it is becoming more relevant in Logistics and supply chain. The way ahead so far has been so promising,and experts have suggested Blockchain for several reasons. Overcoming long processes is a challenge all stakeholders in logistics industry face. Also, lack of end-end visibility, longer processing time, data inaccuracies and several other issues are involved. But with the use of Blockchain in a single window system, they can quite easily overcome all these issues. Here are some use cases for blockchain in developing tech systems forcustoms logistics single window.
Inaccuracy of data is an issue which haunted every stakeholder in the air cargo industry. Digitization not only simplifies processes but also ensures all this information fed in the system stays accurate. Also, it shows which stakeholder fed the specific information, at what time etc. Also, it shows different iterations made in the given information by different people.
Big Data is the key phrase which every single industry is leveraging today. Compared to all of them, logistics has the biggest scope of leverage. In manual operations, everything goes in paper from one stakeholder to the other. In this case, the next stakeholder in the funnel will act only when the current one passes on the baton. If in case, one stakeholder delays, the whole process will go for a toss. Going data driven will help the logistics industry. With this, all the documents present in one system is shared with all stakeholders. Hence, the upcoming one can improve capacity by performing risk analysis.
Embedded within Trade
Accurate data sharing is of utmost importance in the logistics sector. Especially when it comes to customs operations, accurate data sharing is quite essential. Infact, several operations get stalled at the customs side due to inaccurate data. Tamper proof data will help customs validate submitted data against their own database.
Crime is a major issue in logistics sector. Blockchain comes handy in identifying and reporting crime. Money laundering and illicit financial flows can be identified without much efforts as the digital ledger shows the operations performed by each entity. Hence detecting frauds is much easier.
Easy Revenue Collection
By ensuring data authenticity and solving inaccuracies, revenue collections will become much simpler than before as the system shows clear and robust information. As a result, revenue collection happens much faster and leads to 100 percent process improvement.
Digitization is scripting a new course of growth for several stakeholders in the air cargo industry. Blockchain, AI, ML and several other technologies are penetrating the growth achieved due to the same. Apart from this, know the impact of Corona Virus on air cargo logistics.