Blockchain Technology
Blockchain is a digital ledger that provides a secure, tamperproof and permanent record of transactions. CBP believes this technology has the potential to become a major component in the supply chain for the movement of goods and facilitation of entry into the United States.
As projects are developed to assess the application of blockchain technologies, CBP focuses on these business goals:
- Develop a transparent supply chain from beginning to end
- Identify legitimate actors using verifiable credentials
- Reengineer and rethink outdated business processes
- Adopt a team mentality to collect data directly from the source
- Replace paper processes with digitized data
CBP’s goals for every blockchain project are to:
- Obtain data earlier in the process
- Enhance safety and facilitation
- Improve reporting, targeting, and predictive analysis
CBP has demonstrated promising results, including accelerating cargo processing, expediting communications, and supporting enhanced enforcement activity.
See updates from Next Generation Facilitation, COAC Quarterly Meeting, March 17, 2021 Washington, DC
Current Status
Together with the DHS S&T, CBP is working to test and deploy production-level programs using blockchain technology.
- Under the DHS Silicon Valley Initiative Program (SVIP), CBP is pursuing pre-arrival/pre-release data for steel and pipeline commodity imports.
- Three of the SVIP projects – food safety, natural gas imports, and e-commerce – kicked off in late September/early October 2020.
- Following successful interoperability demonstrations on May 6 and 7, 2020, Phase 2 of the steel and pipeline project also kicked off this fall. This phase will feature a steel and pipeline “Teams” under the Emerging Technologies Working Group to get feedback.
- Through these commodity-focused projects, CBP seeks to achieve these objectives using blockchain technology:
- Automation of paper processes
- Introduction of interoperable standards
- Data receipt earlier in the process
- Increased transparency, security, and facilitation of supply chain
- Enhanced entity identification
- Increased security and facilitation
