In its ever-increasing foray into exploring decentralized applications, the Korea Customs Service (KCS) will test an e-commerce customs clearance platform powered by blockchain technology.
In an announcement last week, Korea’s customs authority revealed it had signed a memorandum of understanding (MoU) with a number of e-commerce companies to develop, test and conduct transactions on the untitled blockchain customs platform. Participants include CJ Korea Express and Lotte Global Logistics, two shipping and logistics firms.
It said of the pilot:
Through this pilot project, we will carry out technical verification for practical and effective application of blockchain technology in the field of e-commerce customs clearance and plan to improve related laws and systems.
The blockchain platform enables mutual information sharing among participants and generates automated import customs clearance reports to authorities, the KCS added.
Notably, the authority confirmed it was conducting research and development of a dedicated customs clearing blockchain platform specifically geared to ramp up efficiency in the handling of e-commerce goods.
A full pivot to implement a blockchain solution would prevent forgery and tampering of information related to e-commerce transactions and help customs clearance authorities with real-time, transparent information sharing, the authority claimed.
As reported previously, the blockchain pilot could involve as many as 50 domestic companies on the exporting side and 10 more based in Vietnam and Singapore for imports to test the blockchain-based clearance system.
The KCS has already participated in a 7-month blockchain logistics pilot led by Samsung SDS, the IT subsidiary of electronics giant Samsung, in a consortium that also sees a number of other government authorities, logistics companies, and shipping operators.
South Korea shipyard image from Shutterstock.
Last modified: May 20, 2020 8:42 PM UTC