Smart Customs: how technology is transforming custom management

The arrival of technologies such as artificial intelligence, Internet of Things (IoT), Big Data, Blockchain or robotics have redefined the functioning of almost every industry. As expected, the logistics sector hasn’t been left behind by this innovation wave. This has led port and customs authorities to adapt.

Customs’ new paradigm

Traditional customs were designed to physically inspect and control which goods entered and left a given territory. However, this situation has changed dramatically for several reasons:

1. Digital services and assets. Nowadays, digital goods and services cross borders in milliseconds without needing physical infrastructure or transport.
2. Data at the heart of operations. Traditional customs become inefficient if they just focus on physical cargo. The current challenge is to manage and exchange the associated information quickly, transparently, and securely.

For these two reasons, customs digitization has become a priority for ports, ports authorities and logistics operators. Port modernization remains incomplete without the digitization of customs processes as well.

What are smart customs?

Smart Customs are an evolution of traditional customs processes toward a digitalized, automated and data-driven model. It has as its main objective to reduce bureaucracy and automate part of the processes by using data and digital tools to streamline controls and improve risk management. They integrate technologies such as blockchain, AI and Big Data to optimize customs processes, facilitate commerce and strengthen security.

Among their main characteristics, we can highlight:

• Electronic declarations. The gradual elimination of paper forms through unified digital platforms.
• Non-intrusive inspection systems. The use of high-definition scanners and AI-powered image analysis to inspect containers without having to open the cargo
• In transit goods traceability. Remote monitoring of smart containers through IoT sensors to know their status and route in real time.
• Agile data exchange. Direct connections through APIs and open standards between importers, exporters, shipping companies and tax agencies.
• Transparency and fight against fraud. Immutable records of transactions through blockchain, making document forgery and value overdeclaration more difficult.

The implementation of Smart Customs offers numerous strategic advantages within the logistics ecosystem:

1. Trade efficiency. It reduces waiting times and eliminates bottlenecks.
2. Reduced operating costs. It means lower expenses related to storage, paper-based processes, and manual inspections.
3. Traceability and security. It enables continuous monitoring of risks.
4. Process transparency. It provides full visibility into the status of the process.
5. Smart risk management. It enables large volumes of data to be analyzed to identify operations that present a higher level of risk and focus controls on them.

Implementing Smart Customs isn’t just a matter of installing scanners or cameras. It requires a solid digital infrastructure capable of processing thousands of events per second.

At La lonja de la Innovación, we support the adoption of open technologies and the digitalization of the supply chain to position logistics hubs at the forefront of global trade.

Would you like to discover how to apply technologies such as IoT or data processing in the port and logistics? Visit us!