Explore how the WCO 2024 Smart Customs Survey is advancing global customs technology and what it means for your operations.
What This Blog Covers:
Insights from the WCO 2024 Smart Customs Survey on technology adoption in customs.
An analysis of the IT strategies and maturity levels of customs authorities.
Why staying informed on these trends is essential for your business.
Why Reading This Blog Is Important for Import & Export Professionals
In today's rapidly evolving global trade landscape, the integration of advanced technology into customs processes is a game-changer. The World Customs Organization (WCO) conducted the 2024 Smart Customs Survey to evaluate the global status of technology adoption and to identify key areas where improvements are needed. This blog will delve into the survey’s findings, discussing how these insights can help customs managers, import/export professionals, customs agents, and consultants navigate the complexities of international trade more effectively.
Abbreviations We Use in this Blog:
WCO:Â World Customs Organization
NCP:Â National Contact Point
IT:Â Information Technology
Introduction: Aim of the Smart Customs Survey
On 17 April 2024, the World Customs Organization (WCO) launched the Smart Customs Survey, a vital initiative designed to assess the adoption and impact of technology in customs operations globally. Originally set to close on 6 May 2024, the deadline was extended to 15 May 2024, and further submissions were accepted until 24 June 2024 in response to member requests. This survey is crucial in identifying how customs authorities are embracing technology, understanding their capacity-building needs, and defining which technologies should be the focus of future projects. Additionally, a parallel survey targeted government agencies to gauge their involvement in the technological evolution of customs processes.
Survey Participation and Results
The survey received 116 submissions, representing 62% of WCO membership, with significant participation from the Eastern and Southern Africa (ESA) and Asia/Pacific (A/P) regions. This broad participation reflects the global interest in advancing customs technology. Furthermore, 63% of respondents expressed a willingness to share more detailed information and collaborate on case studies, highlighting a strong community commitment to innovation.
However, participation from partner agencies was limited, with only six submissions from various governmental bodies such as Ministries of Finance and Departments of Information and Communication Technology. This highlights a potential gap in cross-agency collaboration that needs to be addressed for more cohesive technology integration.
Assessing Global Technology Adoption
One of the key objectives of the Smart Customs Survey was to evaluate the current status of technology adoption across customs administrations worldwide. This includes understanding which technologies are in use, under development, or being considered for future implementation. Notably, 8% of respondents provided detailed insights into their current technological landscape, offering valuable data for the WCO’s ongoing analysis.
For customs managers and professionals involved in import and export, staying informed about these technological trends is crucial. Understanding which technologies are being adopted and how they are implemented can significantly impact your operations, from streamlining customs clearance processes to ensuring compliance with international trade regulations.
IT Strategy and Maturity Levels
The survey also explored the maturity of customs authorities' IT strategies, revealing a wide range of technological readiness across different regions. An IT strategy was in place for 92% of respondents, but the levels of maturity varied:
Level 1: Initial (Awareness) - 13%At this stage, customs administrations are just beginning to recognise the importance of innovation, with decision-making processes still largely reactive and fragmented.
Level 2: Experimental (Ad-hoc) - 23%Here, administrations actively pursue innovation but lack a structured approach, resulting in siloed efforts and minimal coordination.
Level 3: Operational (Established) - 30%Administrations at this level have formalised their approach to innovation, with scalable solutions and a clear transformation roadmap in place.
Level 4: Advanced (Systemic) - 27%At this stage, technological applications are supported by a collaborative environment, with robust IT governance and strategic partnerships in place.
Level 5: Transformational (Widespread) - 7%This level represents the pinnacle of technological maturity, where innovation is fully integrated into business processes, driven by a strong internal digital development capability and a culture of continuous improvement.
For import specialists and customs agents, understanding where different regions fall on this maturity scale can provide insights into the efficiency and reliability of customs processes in those areas. It also highlights opportunities for collaboration and improvement, particularly in regions that are still in the early stages of technology adoption.
Building the Smart Customs Community
A key outcome of the Smart Customs Survey is the establishment of the Smart Customs Community, facilitated by the nomination of National Contact Points (NCPs). This community aims to foster collaboration and knowledge sharing among WCO members, focusing on disruptive technologies that have the potential to transform customs operations. By participating in this community, customs professionals can gain early access to innovative solutions and best practices, helping to stay ahead in a competitive global market.
Knowledge Sharing and Case Studies
The survey also identified a strong interest in developing in-depth case studies on technological adoption. These case studies will contribute to updating the Study Report on Disruptive Technologies and will be shared via the WCO’s Community Portal. For businesses involved in import and export, these case studies offer practical examples of how technology can enhance efficiency, reduce costs, and improve compliance in customs operations.
Conclusion: Key Takeaways
The Smart Customs Survey 2024 provides invaluable insights into the current state of technology adoption in customs worldwide. From assessing IT maturity levels to building a collaborative community, the survey’s findings are crucial for anyone involved in international trade. By understanding these trends and participating in the ongoing dialogue, you can position your business to thrive in a rapidly evolving global market.
Expert Recommendations:
Engage with the Smart Customs Community: Join the WCO’s initiatives to stay updated on the latest technological trends and best practices.
Evaluate Your IT Strategy:Â Regularly assess your IT strategy to ensure it aligns with global best practices and is scalable for future needs.
Collaborate with Partner Agencies:Â Foster stronger relationships with government agencies to ensure cohesive and comprehensive technology adoption.
How We Can Help
Customs Manager Ltd offers comprehensive support for enhancing your customs operations. We provide bespoke consultancy and practical assistance for import-export operations, including public, in-house, and on-demand training tailored for customs professionals, importers, exporters, and their partners. Our services also include UK import and export customs clearance and weekly customs trade intelligence updates. For more details on our services, visit www.customsmanager.org.
Download
Download the results of the study here
Disclaimer:
The information provided in this blog post is for educational purposes only and should not be construed as legal advice.
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