CBP to Pilot Blockchain for NAFTA and CAFTA Certificate of Origin Processes

CBP will launch a two-to-four-week pilot program of blockchain technology this fall related to NAFTA and Central America Free Trade Agreement certificate of origin processes, a CBP spokesman said. NAFTA and CAFTA origin procedures were chosen for the pilot because it's an instance where CBP needs to reach further back into the supply chain than just the exporter and can "message multiple partners via blockchain at the same time." It was also appealing because it has a small, defined scope with potential for reducing paper processes, he said.

CBP and the Department of Homeland Security's Science & Technology Directorate will be examining how much the blockchain system reduces duplicative data and whether multiple blockchain programs can communicate simultaneously. The pilot also has a goal of evaluating "the usefulness of blockchain for a law enforcement agency," the CBP spokesman said.

After the pilot concludes, there will be a three-tiered assessment of legal, policy and technical lessons learned. Imports across all ports of entry will be included in the pilot. Commercial Customs Operations Advisory Committee members helped to choose NAFTA/CAFTA rules of origin as the subject of the blockchain pilot (see 1802210034).