BLOCKCHAIN TECHNOLOGY IMPLEMENTATION IN THE U.S. CUSTOMS ENVIRONMENT

Abstract

Blockchain technology promises to revolutionize supply chain management and may improve the international trade environment as well as compliance and enforcement capabilities. Because blockchain technology is still developing, the government has an opportunity to collaborate with the trade industry and to explore the technology’s capabilities. This thesis examines the first proof of concept (POC) blockchain implementation by U.S. Customs and Border Protection (CBP) and provides recommendations for future government involvement in the implementation of blockchain technology in the U.S. customs environment. The POC proved that blockchain technology can be implemented in the U.S. customs environment and that the technology can improve the processing and tracking of trade documents, facilitate interaction with multiple entities, enable better auditability, and expedite processing. The POC revealed that utilization of emerging interoperability specifications and standards is key for successful implementation. This research concludes that if government entities join the blockchain revolution early on, they have an opportunity to drive the change, rather than to react and adapt to systems established by others. This thesis recommends that CBP expand blockchain implementation by joining efforts with other government agencies and the trade industry. CBP can facilitate future coordination, implementation, and creation of global blockchain standards necessary in international trade.