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Applying Industrial Revolution 4.0 of customs administrations in the world

09:57 | 11/09/2021

VCN – The customs administrations of developed countries such as the US, Japan and South Korea are strongly applying the achievements of the 4.0 industrial revolution.

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Applying Industrial Revolution 4.0 of customs administrations in the world
Adjacent to the International Border Gate No. II Kim Thanh, Lao Cai (Vietnam),Chinese Customs applies new scientific and technological achievements to customs control Photo: T.Binh.

General trend

According to the General Department of Vietnam Customs (GDVC), customs administrations of some developed countries have accelerated the application of the achievements of the Industrial Revolution 4.0 like artificial intelligence (AI), blockchain, Internet of Things (IoT), big data, and Open API.

For example, the US Customs and Border Protection (CBP) uses advanced technologies to the customs management and control including the Automated Targeting System-Global (ATS-G), the Unmanned Aircraft System (UAS), the Advance Passenger Information System (APIS), and Non-Intrusive Inspection Systems.

The CBP also applies the technologies of the Industrial Revolution 4.0 such as AI, fingerprint biometric technology, sensor devices, surveillance camera system, infrared devices, and other radiation detection equipment to detect offences at the border.

Japan Customs authority applies advanced technologies, like AI to smart scanning and risk assessment for shipments.

Currently, Japan Customs is organising the implementation of the initiative by 2030 to adapt to the change of the operational environment, the rapid increase of trade and tourism, and the Industrial Revolution 4.0.

South Korea is the Asian country pioneering in applying the achievements of the Industrial Revolution 4.0. Since 2018, Korean Customs has used the achievements of the Industrial Revolution 4.0, such as: AI, blockchain and big data in customs operation and offered research to establish a new platform of the Electronic Clearance System (UNI PASS) based on blockchain technology.

China has early accessed to new technologies. China Customs applies modern technologies like traceability, robots, unmanned aircraft, big data, data sharing, integrated intelligent management, optimised human resource management, and controlled internal risks, as well as applied early warning system, logistics chain management and risk assessment.

Vietnam Customs timely follow new trend

The World Customs Organisation (WCO) offers 10 pillars of customs administration in the 21st century.

These pillars include global customs cooperation; integrated border cooperation; risk management based on intelligence; customs-business partnership; application of modern methods, procedures and techniques; the use of modern devices and tools; improving competency of customs administration to combat organised crime and ensure the safety of customs officers; knowledge-based professional service culture; capacity building, and integrity.

Per the WCO Strategic Plan for 2021-2025, the promotion of Digital Customs is one of key tasks of customs administration, including integrated border management and information exchange between stakeholders and orientation to build tools for information technology solutions; domestic and foreign cooperation and information exchange, digital customs and increasing use of technology and data.

Vietnam Customs is using resources to implement the Digital Customs System and Smart Customs model.

Smart customs is a model with a high degree of automation, applies new and modern scientific and technological achievements on a digital, paperless platform, ensuring transparency, fairness, effectiveness and efficiency, and can forecast and adapt to fluctuations of international trade and management requirements of customs administrations, information exchange and connection with ministries and branches, in line with international standards.

The model includes basic functions such as smart border management; digital ecosystem and supply chain, providing optimal service; smart connection and processing; transparency, fairness, and consistency.

By Thai Binh /Ngoc Loan