Block Chain

White Paper
Windows of Opportunity:
Facilitating Trade with
Blockchain Technology
July 2019
Contents
Preface 3
Introduction 4
State of single windows 5
Benefits 5
Pain points 7
Potential use-cases with blockchain 10
Challenges 11
Use-cases 11
Guidelines for operationalizing use-cases 15
Next steps 19
Appendix 20
Acknowledgements 21
Endnotes 22
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2019 – All rights reserved
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REF 180118 - case 00040020 entirety of its Members, Partners or other stakeholders.
Preface
The Fourth Industrial Revolution, driven by rapid technological change and

digitization, is having a profound impact on global trade. By applying innovative
new technologies to trade, “TradeTech” promises to increase efficiency,
drive economic development and grow inclusivity. However, challenges and
uncertainties remain on the policy governance of TradeTech. Public-private
partnerships are needed to maximize the benefits and mitigate the potential
downsides of applying new technologies to global trade.
Building on global developments and aspirations for TradeTech, the World

Ziyang Fan, Economic Forum’s Centre for the Fourth Industrial Revolution, through its Digital
Head of Digital Trade team, collaborated with the Inter-American Development Bank (IDB) to
Trade, World launch a new project. This project aims to guide public-sector stakeholders to
Economic Forum make informed decisions about using emerging technologies to facilitate trade,
drive economic development and improve competitiveness – particularly in the
case of blockchain deployment in trade single windows. Given its prioritization
of emerging technologies and having worked closely with Latin American and
Caribbean (LAC) governments, the IDB has valuable experience and knowledge
to help co-design and shape the trade agenda.
Within trade facilitation, trade single windows serve as the single electronic point
for exporters and importers to submit regulatory and commercial documents to
respective government ministries and agencies. However, promises of increased
efficiency are hindered by pain points and challenges, such as the lack of
Pablo M. Garcia,
interoperability among agencies, persistence of outdated processes and limited
Director of the
visibility and traceability of shipped goods.
Institute for the
Integration of
By exploring the application of new technology – blockchain – in the trade single
Latin America and
windows network, this White Paper outlines the current obstacles governments
the Caribbean,
face in implementing and maintaining single windows, and the potential for
Inter-American
blockchain to address those issues – while understanding the experimental nature
Development
of the technology. The White Paper draws on the expertise of more than 80
Bank
project community members globally across various industry sectors, government
agencies, intergovernmental organizations and academic institutions as well as in
civil society. The policy framework laid out in this White Paper is also intended to
be applied in a proof of concept with the support of the IDB.
This project reflects the mission of the World Economic Forum’s Centre for the
Fourth Industrial Revolution: to provide an international platform of expertise,
knowledge-sharing and public-private collaboration and to co-design and pilot
innovative new approaches to policy and governance in the Fourth Industrial
Revolution. This project will encourage proofs of concept within and outside of the
project community, share and scale lessons learned using the World Economic
Forum’s platform on international trade and investment.
Windows of Opportunity: Facilitating Trade with Blockchain Technology 3

Introduction
Trade costs – the costs of moving cargo from one country The purpose of this policy framework is to help
to another – are a leading constraint for companies wanting governments in these explorations by focusing on the
to engage in trade. A significant share of these costs potential for blockchain in single windows. Blockchain,
stems from the time and money that companies spend a database that retains information on all transactions
on paperwork and in multiple submissions of the same on a ledger visible to all stakeholders, is already being
information, as required by various government border considered and piloted in various areas of world trade
agencies to release goods for export and allow them to – such as trade logistics, supply-chain management,
enter the importing country. Trade single windows have customs and border regulatory processes, cross-border
considerably improved this process, acting as one-stop payments and trade finance. This policy framework (1)
electronic platforms for registered users to lodge the analyses the main pain points in single windows around the
required import and export trade documents. Studies world; (2) assesses specific use-cases where blockchain
suggest that electronic single windows have helped halve might alleviate some of these pain points; and (3) develops
document processing times in border agencies, cut guidelines for governments to consider and apply
trade compliance times to one-third, increased adopting blockchain in trade single windows. The policy framework
countries’ exports and gross domestic products (GDPs) is aimed at government agencies involved in border
and encouraged an overall improvement in transparency clearance; however, private-sector organizations engaged
and user experience for border clearance. in trade can also use this report to consider how best to
encourage governments to use this technology.
Single windows have proliferated in recent years; as of
2017, 27 countries had a full electronic single window The following section discusses the importance of trade
and 36 had a partial single window. All 164 signatories single windows in trade facilitation and reviews the main
to the Trade Facilitation Agreement (TFA), which entered pain points experienced by single window operators and
into force in 2017, are encouraged to adopt an electronic users. The next section assesses the value propositions
single window. Their benefits notwithstanding, single of blockchain and analyses how these are best applied
windows leave a good deal of room for improvement. to remove the main pain points experienced by single
Implementation has been challenging, especially for window operators and users, while also developing a
many developing countries; surveys have revealed such series of use-cases for blockchain in single windows.
problems as agencies’ long response times, a reliance on The section thereafter focuses on the considerations for
paper-based documents and a requirement to submit the operationalizing blockchain use-cases in single windows.
same data multiple times to different authorities. The final section discusses what steps can be taken next.
Such challenges undermine government progress in

facilitating trade and enabling small- and medium-sized
enterprises (SMEs) to engage in trade. It is also a good
time to address such issues: Companies are digitizing their
trade operations and thus demand automated processes,
including those provided by governments. There is also
a compelling case for improving single windows due to
the growth of e-commerce: whereas previously border
agencies mostly dealt with a limited number of large
companies doing regular, container-based transactions,
now they have to contend with an avalanche of parcel-
based shipments and new traders with whom they are less
familiar. In response, governments around the world are
considering using new methods and the technologies of
the Fourth Industrial Revolution to improve the operation,
data quality, risk management and user experience in
single windows.
4 Windows of Opportunity: Facilitating Trade with Blockchain Technology

State of single windows
Exploring blockchain’s usefulness in single windows fisheries, environment, energy and mining, and enables
requires an understanding of the essential challenges traders to submit 127 different types of documents
facing single windows and their users. This section required by the various border agencies.
discusses the gains and pain points single windows have
created, based on academic literature and structured Single windows have delivered a notable return on
interviews with single window operators in various investment in a wide range of countries, facilitating trade
geographic regions. considerably and lowering companies’ international trade
costs (Table 1). Their benefits have been compounded by
Benefits the digitization of trade documents: such “paperless trade”
obviates the need for exporters and importers to spend
Introduced in the late 1980s in Sweden and Singapore, time filling out paper documents, re-entering the same data
where they reduced border clearance times from four multiple times and visiting government agencies in person
days to 15 minutes, trade single windows have become a to secure signatures and stamps.3 Many governments have
centrepiece of trade facilitation efforts around the world. digitized customs clearance and duty payments; research
The TFA encourages signatories to adopt electronic suggests this has cut border compliance time for imports
single windows – single windows powered by information by one-third, and significantly reduced corruption in the
technology. The United Nations Economic Commission customs process.4
for Europe has been instrumental in developing definitions,
guidelines and standards for single windows, and several Such efficiency gains can be even greater when trade
entities including development banks and the World Customs single windows are combined with port community
Organization have helped countries build and finance them. systems (PCS) that enable the exchange of information
among players in port environments. For example, in
By 2017, trade single windows had been adopted in full Benin, Togo and Democratic Republic of the Congo,
or in part in 63 countries (Figure 1). They typically bring traders receive a “single invoice”, where all costs at the port
together dozens of government agencies in charge of (such as terminal handling charges) and regulatory costs
such areas as health, agriculture, quarantine, immigration (for instance, duties and taxes) are combined into a single
and technical standards. For example, in Uruguay, the invoice that is automatically sent to the importer or relevant
single window brings together 27 agencies such as tax party. Once the full invoice is paid, the bank pays all of the
and customs authorities and ministries of agriculture and individual stakeholders and goods are released.
Figure 1: Trade single window adoption among 120 analysed countries, 2017
Source: Author processing from the UN Paperless Trade Database, 2017

Table 1: Selected impacts of digital technologies in border processes
Digital Countries that have

General objectives Selected impacts
approaches adopted by 20175
In Kenya, the average time spent on

processing applications dropped by 50%, the
number of documents required for processing
halved and traders saved time previously
spent on visiting various agencies.6
Improve and accelerate
trade compliance by In Cameroon, the time to import used cars
enabling traders to submit fell from seven to two days, the time to lodge
all documents required shipping manifests from seven days to one
for border clearance in minute and the time to obtain import licences
Digital single one “window”, typically from eight hours to 15 minutes.7
windows 27
electronically
In Colombia, the time to import a container fell
Enable agencies to process from 48 to 13 days and the time to export a
trade documents faster, container from 34 to 14 days in 2006–2011.8
thereby accelerating the
clearance of cargo at borders Costa Rica reaped $16 in economic gains
from every $1 invested in the single window.
Without the system, exports would have been
on average 2% lower than they were between
2008 and 2013, or 0.5% of GDP.9
Exporters and importers in countries with

paperless trade spend far less time on
paperwork for border clearance: Sub-Saharan
Reduce re-entry of same African importers spend on average 98 hours
information on multiple on paperwork for a consignment, as opposed
paper-based documents to only four hours in Thailand and one hour in
Canada and Sweden where traders use digital
Lower processing times for documents.10
Digital trade traders and staff at trade
documents, agencies that process In Costa Rica, exporters became able to fill 6712
“paperless documents out a single form online, which the single
trade” window distributed automatically across trade
Improve legibility of trade
agencies to issue permits; trade in this channel
documents traditionally filled grew 1.4% faster than exports processed via
out by hand traditional methods.
Reduce probability of error
Paperless trade has facilitated global supply
chains, such as by enabling just-in-time
delivery.11
Reduce invoicing times by

automating computation of
duties and fees
Digital
Reduce corruption in customs In Tanzania, digitization of customs clearance
payments of
and duties cut import clearance times from 53
customs duties Reduce time for importers to nine days to less than one day.13
and fees make payments online
Accelerate reconciliation and
thus customs clearance
Make trade requirements Small and remote firms accelerating their

Information
easily accessible, including for access to trade requirements, information
on export and
new exporters and importers, and documents in a single place reduces 64
import processes
and promote transparency of processing time and enables them to work
available online
trade operations without intermediaries.

Pain points developing country border agencies and customs
demand traders submit paper documents – by 2017,
While they have delivered significant gains, single windows only 28 countries had adopted electronic application
in many countries have yet to be implemented in full and protocols for export permits, 25 had adopted electronic
thus work as seamless one-stop shops for traders to submit issuance of preferential certificates of origin and 45 had
trade documents and accelerate border clearance. Research adopted electronic submission of both sea and air cargo
and interviews reveal several pain points in single window manifests.20 The persistence of paper is caused by sheer
systems related to interoperability among the stakeholders, inertia, limited budgets and staff concerns about the
paperless trade, traceability of goods, document and impact of digitization and automation on jobs.
payment processing and trustworthiness of data (Table 2). – Businesses are unfamiliar with digital processes and
The following section details some of the main challenges. lack information and communications technology
(ICT) skills to perform digital filings. Companies
Limited interoperability can also impede paperless trade. Even in advanced
countries, some companies are set in their ways and
– National single windows are disconnected from one continue to use paper-based documents; in developing
another. The TFA calls for countries to coordinate their countries, companies can lack confidence in the
border procedures to facilitate trade. Such coordination security of data submitted online and ICT skills or IT
is, however, still very limited – in the UN survey, only infrastructures to use digital interfaces – even though
seven European countries and Canada reported full digitization of trade processes in principle should help
engagement in “trade-related cross-border electronic especially small firms that have limited staff capabilities
data exchange” while 48 had some partial exchanges.14 for trade compliance.21
For example, the ten members in the Association of
Southeast Asian Nations’ (ASEAN) single window enable – Unstructured data embedded in trade documents
electronic exchange of preferential certificates of origin, are not converted into more easily analysable
while the four members of the Pacific Alliance share structured data, and data formats are not
phytosanitary and origin certificates.15 The reasons for harmonized. Governments have enormous amounts
the fragmentation of national single windows include of useful data on traders and shipments that can be
disparate national databases, lack of platforms for used for sophisticated predictive analytics, such as
efficient exchange of data and differing regulations, such risk management. Yet this data cannot be efficiently
as tax secrecy, data privacy, transfer laws and different analysed because it remains in unstructured formats,
document formats. As a result, every country is worse embedded in paper documents that have yet to
off: Traders have to enter the same data on export and be converted into digitized, structured databases.
import declarations, risking mismatches and longer Moreover, data formats are not harmonized, limiting the
processing times; governments “fly solo” in interpreting scalability of data analytics.
data, managing risks and detecting anomalies; and each
importing country has a more limited window to conduct Inefficient manual processes and lack of automation
pre-arrival processing that would otherwise accelerate
the release of goods.16 – Manual document processing and reconciliation
– Border agencies operate with isolated data. The of databases. Errors are legion in trade documents,
main value proposition of single windows to their users because many are still often handwritten and simply
is that they aggregate trade processes in one window.17 illegible, and because the same data is being re-
However, single windows are not that single: Border entered manually multiple times into new documents
agencies that form part of a single window still often and databases, a process prone to error. Even in more
operate in isolation with regard to their respective data, digitized settings, updates to agencies’ databases can
struggling to share data and coordinate actions such require manual interventions, which wastes staff time,
as risk management and inspections with each other.18 increases the odds of error and stops agencies from
Single windows in some Latin American and Caribbean allocating resources to more value-adding work such as
countries are also disconnected from customs, so that sophisticated risk management. Even in countries with
traders inherently need to deal with a “double window”. low labour costs, the inefficiencies of manual processes
Part of the problem is technical, with legacy databases can raise personnel costs far above those with digitized
impeding the sharing of data, while part is political, with documents and shared databases.
agencies keen to protect their turf and modus operandi.19 – Inefficiencies in making and reconciling customs
In some countries, corruption remains a problem: Players duty and fee payments. While 53 countries have
who monetize delays at the border have little interest in enabled electronic payments for customs duties
facilitating trade. and fees, the costs of making and reconciling these
payments can be surprisingly high.22 One reason is
Persistence of paper that, while invoicing based on a customs declaration
is typically automated, customs payments in many
– Border agencies still demand that traders file paper- countries require importers to first pay the sum in the
based documents and visit agencies in person. invoice, and even physically present a document to
Despite pledges to introduce paperless trade, electronic customs to prove the duty was paid. In Sri Lanka, the
single windows are not always that electronic: Many customs platform computes the fees, taxes and duties

automatically, but traders still need to visit customs to Solving these pain points can have significant payoffs;
submit paper documents that agents then process.23 for example, the dramatic difference in the number of
Furthermore, direct deposits and wire payments contain hours spent on regulatory paperwork between countries
limited data, and customs then has to manually match that have implemented paperless trade and countries
an electronic payment to a given shipment, which that are still using paper-based documents. But even
decelerates customs clearance rates. countries that have the world’s most digitized single
windows and are the top performers in trade facilitation
struggle with lack of interoperability and inefficient
Limited traceability of goods in supply chains
processes; they are still seeking to further reduce
border clearance times and gain new capabilities.
– Limited sharing of data across trade networks
among border agencies and the private sector.
Digitization and sharing of data among border agencies
themselves and with the private sector has increased
visibility and advance knowledge about incoming
shipments. For example, in the United States, the Air
Cargo Advance Screening (ACAS) enables customs
access from airlines’ advanced air cargo information
regarding shipments arriving in the United States.
However, sharing of data among governments and the
private sector is still limited, impeding agencies’ ability
to trace goods to their origin, verify certificates of origin
and recognize anomalous patterns and manage risks,
ultimately resulting in potential risks to end users of
shipped products.
Concerns about data trustworthiness and security

of data
– Limited trustworthiness of data entered on single

windows. Border agencies and traders’ processes
involving the re-entry of the same data multiple
times while reconciling different agencies’ databases
undermine the trustworthiness of data in single windows.
Data trustworthiness diminishes if data provided by the
agencies and trader differ.
– Companies are concerned about the security of their
sensitive commercial and financial data submitted
online. This problem is exacerbated in countries where
the government has misused corporate information,
and/or has limited cybersecurity protections, electronic
signature laws and centralized management of data.24
There are no contracts between firms that use single
windows and border authorities. Thus, the former has
little control over how their data may be used or shared
and by whom. This contrasts with port community
systems where parties enter into a contract and have
recourse if their data is misused.
– Companies are unable to access and reuse their
identities and data in single windows. Companies
that use single windows often need to enter their identity
and other datasets multiple times to access government
and commercial services, as well as being forced to
use a variety of identifiers when dealing with different
stratas of government. They are unable to use data, such
as their records of compliance, authorized economic
operator (AEO) certifications and trade transactions, in
single windows. This level of data could be very useful
for commercial purposes, such as enabling banks
that provide trade finance to carry out due diligence or
insurance companies to offer better rates to companies
with a strong record of trade compliance.

Table 2: Selected pain points in electronic trade single windows
Main pain points Selected reasons Main impacts
Duplication of efforts, delays and lack of end-

to-end visibility of shipments: traders have
to enter the same data on export and import
Limited National single windows disconnected from declarations, risking mismatches and longer
interoperability each other processing times; each government “flies
solo” in interpreting data, managing risks and
detecting anomalies; each importing country
has more limited opportunities to conduct pre-
arrival processing.
Increases data re-entry, probability of

Border agencies still demand traders file paper- errors and mundane, repetitive processes
based documents and visit agencies in person that consume traders’ and agencies staff
resources.
Persistence Businesses are unfamiliar with digital processes Perpetuates use of paper in regulatory filings,
of paper and lack ICT skills to perform digital filings wastes firms’ time in mundane processes.
Unstructured data embedded in trade Limits opportunities for sophisticated data

documents are not converted into more easily analytics to detect anomalies and fraud in
analysable structured data; and data formats are shipments, and scalability of data analytics.
not harmonized
Increases overheads as staff in each agency

Manual document processing and reconciliation
need to reconcile respective databases with
of databases
Inefficient those of others.
manual
Wastes customs staff’s time in mundane
processes
Inefficiencies in making and reconciling customs reconciliation processes; decelerates the
duty and fee payments release of goods from customs, costing traders
time and money.
Limits agencies’ ability to verify origin of goods,

Limited trace goods in supply chains and detect
traceability Limited sharing of data across the trade network anomalies and fraudulent patterns in multi-
of shipments among border agencies and the private sector country supply chains, resulting in possible
risks to end consumers of shipped products.
Limited trustworthiness of data entered on Undermines the credibility and usefulness of

single windows data held by any one border agency.
Limited Makes companies reluctant to use single

Companies are concerned about the security
trustworthiness windows and electronic documents and filings,
of their sensitive commercial and financial data
and portability where these are optional; process devolves
submitted online
of identities back to paper.
and data Forces companies to re-enter data across
Companies are unable to access and reuse their government services and forego opportunities
identities and data in single windows to use valuable transactional data for other
commercial purposes.

Potential use-cases with blockchain
Blockchain has several useful properties for settings that “blocks” of data that are visible to all stakeholders – and
characterize single windows – multistakeholder systems thus enables disparate parties in a network to access the
in which users struggle to share data with each other are same data in real time, reducing all parties’ transaction
forced to continue performing manual processes and costs and enabling stakeholders to share data and
question the trustworthiness of their data. For example, interact more fluidly.
blockchain can help diverse stakeholders interoperate by
enabling them to access the same data at the same time Why is blockchain useful?
(hence the term “distributed ledger”); smart contracts built
on a blockchain can automate stakeholders’ compliance Blockchain also holds promise for authenticating data
with various contractual obligations; and blockchain data and improving the trustworthiness of data. Shortly after
is a stream of reliable information on past transactions each transaction occurs, it is put into a block on the
as they are immutable once entered (Box 1). This section blockchain. These blocks are mathematically “chained”
assesses potential use-cases to alleviate the pain points in together. The blocks are verified and managed by the
single windows using blockchain.25 network nodes (computers or users participating in a
blockchain network) via a shared governance protocol;
Box 1: What is blockchain? each node contains a complete record of all of the
transactions ever recorded in that blockchain. No single
There are a great many definitions and descriptions of node can change or delete a block – which means data
blockchain. For the purposes of this paper, blockchain on blockchain is immutable and tamper-evident. With
can be defined as a shared, distributed ledger of records immutable blocks of data, blockchain also enhances a
or transactions that is open to inspection by every party’s ability to trace transactions, such as shipments in
participant, such as countries’ trade agencies that form world trade.
part of single windows.
Blockchain can also automate the fulfilment of contractual
To understand blockchain’s various properties, it is obligations via smart contracts built on a blockchain, and
useful to think of a typical trade transaction. It involves thereby reduce intermediation costs.
several documents and bilateral interactions, such as
between importers and trade finance banks, exporters Who can use blockchain?
and shipping lines and exporters and importers and
their countries’ regulatory authorities. These interactions Often, blockchain is thought of as a database anyone
amount to a significant waste of time: Parties fill out can use – and it is the case that blockchains can be
numerous documents, often entering the same data “permissionless” like bitcoin, where anyone can join the
multiple times; they email and call each other to verify network of users. But in most commercial applications,
and often correct information that was entered; they they are permissioned, meaning that users need
check on each other’s processing times, often bilaterally permission to join.26 Though permissionless networks
in each individual transaction. are open, transparent and decentralized, they are also
anonymous, unregulated, usually crypto-based and
Each of these bilateral messages and interactions holds have high transaction fees. Meanwhile, permissioned
its own version of “truth” about the product’s journey blockchains are not decentralized or open to all, but they
from seller to buyer. The multiple bilateral “truths” often have low transaction costs and identifiable participants,
lead to error, fraud, delays and inefficiency, including in and they can be regulated. This paper focuses on
border clearance. permissions ledgers – bearing in mind that there is a
continuum of blockchain applications falling between the
Blockchain can reduce the number of steps and permissioned and permissionless models, with different
processes among the network of players involved in governance and revenue models.
any one trade transaction and give every player a bird’s
eye view of any one shipment. As a distributed ledger
technology (DLT), blockchain can slash the number of
bilateral communications and informational linkages
and leakages by providing a single ledger that records
the transactions as they occur and enables all parties,
such as trade agencies, to access this data in real time.
Blockchain enables transactions to be recorded in

Challenges
Before going further to assess blockchain’s value added,
it is important to consider some challenges in analysing
blockchain’s potential in single windows.
First, data on blockchain’s impact is still very limited: Piloting

and testing is needed to understand blockchain’s full
potential. Governments have been adopting digital single
windows and paperless trade over the past 30 years, and
by now there are significant amounts of data and analysis
data on the impacts of digitization of single windows, trade
documents and payments. However, no systematic data
currently exists on blockchain’s impacts: We essentially
know the “digitization premia” but we still cannot, in a similar,
rigorous way, capture the “blockchain premia” in border
clearance.27 However, blockchain pilots in trade and other
domains are compelling enough to suggest that it could have
significant new value and thus merits exploring and piloting.
Secondly, it is premature to determine blockchain’s unique

potential with regard to other technologies in border
clearance. This report does not claim that other digital
technologies could not solve many of the pain points in single
windows: Digital documents, payments and data sharing
via application programming interfaces (APIs) have already
done a great deal of good. Many developing countries would
score enormous gains if they implemented single windows as
successfully as Singapore, Korea or Mexico have done. This
report is not a “battle of technologies” intended to compare
technologies side-by-side or seek to persuade governments
that blockchain is a superior technology. The evidence is
still much too limited to make such claims, since blockchain
technology (like many other technologies) is maturing, and
fierce debates persist.
What can be said is that blockchain is not a silver bullet that

cures all ills in world trade –what it can and cannot do well
can be defined only through further testing and piloting.
Many governments that have been successful in automating
their border processes – such as the United Kingdom,
Korea, Singapore, Mexico and the United States – are today
the most avid experimenters with blockchain in customs
and single windows, precisely to assess the technology’s
potential in offering new efficiencies and capabilities. Also,
many leading logistics companies and banks are exploring
blockchain for streamlining their operations.
This report seeks to help governments consider where

and how to apply blockchain in border clearance, and to
operationalize blockchain use-cases in single windows.
Use-cases
Table 3 and the following discussion lay out several potential
use-cases to address selected pain points in single windows
for which blockchain could be a particularly useful solution,
along with further complementary technologies and policy
measures.

Single windows
Table 3: Single use-cases
windows and
use-cases and blockchain’s
blockchain’s potential
potential
Main pain Selected reasons Use-case Blockchain’s potential Alternative/

point complementary
technologies and
actions
National single windows Interoperability and Improve all national single windows’ visibility Big data and AI;
disconnected from each data share among two into supply chains, ability to manage risks harmonization of
other or more national single and recognize patterns and conduct pre- national documentation
windows arrival processing; share data on Authorized requirements, agreements to
Economic Operator certifications share data across borders
Limited Distrubuted database

interoperability
Border agencies that form Interoperability and Improve all border agencies’ ability to Inter-agency collaboration
part of a single window coordination of actions share data and coordinate actions, gain and APIs to share data; big
operate in isolation among agencies making 360-degree visibility of transactions and data and AI
up the single window manage risks, improve user experience
Distrubuted database
Limited sharing of data End-to-end visibility into Enable more complete data on shipments Internet of things
across the trade network shipments and supply and supply chains and audit trails on traders applications; agreements
among border agencies chains by bringing together single windows and/ to share data with private
and the private sector or private-sector trade intermediaries on a sector and across borders;
Limited common blockchain with immutable streams machine learning to detect
of data anomalous patterns in data
traceability
of shipments
Distrubuted database Immutability
Inefficiencies in making Automation of processes Automate payments and their reconciliation; Robotic process automation;
and reconciling customs to make and reconcile accelerate revenue collection deferred duty payments;
Inefficient duty and fee payments duty and fee payments
Auditability
information-rich electronic
manual payments
processes
Smart contracts Auditability
Limited trustworthiness Improved reliability of Make data entered into single windows Data standards; data-
of data entered on single data entered on single immutable and unauthorized modification to security protocols; AI to
windows windows the data traceable detect fraudulent and
erroneous data entries
Limited
trustworthiness Distrubuted database Auditability Immutability
and portability
of identities Companies are unable Authentication of Provide single window users with a unique Development of a unique
and data to access and use identities and portability identity and enable users to apportion relevant ID such as Global Trade
their identities and of identities and data parts of their identities and transactional data Identity (GTID); government
data included in single across service providers, to third-party service providers regulations to encourage or
windows including for commercial demand portability of data
purposes (e.g. access
trade finance)
Digital identity Auditability Immutability
Pillars for blockchain in single windows: electronic signatures and transactions laws, solid IT Infrastructures,
mobile-enabled interfaces

Interoperability among national single windows.
Box 2: CADENA: Blockchain in AEO mutual
Interconnected, interoperable national single windows
recognition agreements in Latin America
would have various benefits. They could enhance national
border agencies’ oversight of traders and transactions;
During 2018, the IDB, together with the customs
help countries tackle fraud, such as the undervaluation of
administrations of Mexico, Peru, Costa Rica and Chile,
shipments by the importing country’s customs; and reduce
and with technical support from Microsoft, designed a
the number of data entries and document submissions from
solution using blockchain technology called CADENA
exporters and importers. Governments adopting blockchain
v.0.33 It facilitates the sharing of the data associated with
to connect their single windows would need to integrate
Authorized Economic Operator (AEO) certificates among
processes within their own single windows, build trust with
customs administrations as specified in their mutual
each other, standardize data elements,28 align blockchain
recognition agreements (MRA). While AEO programmes
implementations with their respective cross-border data-
enable companies to facilitate their trade and save time
transfer regulations and establish robust collaboration with
and money in their trade transactions, CADENA helps to
the private sector.29 One novel solution is Infocomm Media
secure and facilitate supply chains globally.
Authority of Singapore’s effort to develop an interoperability
framework, TradeTrust, for the secure exchange of electronic
CADENA has been designed, first, to find a solution to
trade documents in cross-border trade.30 Piloting can help
a customs and border management challenge – the
countries work together while discovering mutual benefits.
sharing of cross-border data – and secondly, to enable
For example, with IDB’s support, Latin American customs
customs to learn about blockchain in order to consider
agencies have successfully piloted a blockchain scheme to
possible further use-cases. Blockchain enables different
share data from their respective AEO programmes (Box 2).
national customs authorities to access the same verified,
tamper-proof and real-time data. This ensures that
Interoperability among border agencies that form part
traders can receive MRA benefits both at the countries
of a single window. One of the main pain points facing
of origin and destination of their exports as soon as they
single windows is the friction in sharing data among trade
are granted their AEO certification.
agencies that form part of that window. Blockchain can
make a significant difference in this setting: Used in a
During the pilot project, customs validated the benefits of
way analogous to Google Drive, blockchain can enable
the technology for sharing cross-border data, providing
the myriad trade agencies to access the same data at
timely information about the level of compliance of
the same time, gain greater visibility of shipments and
traders to feed risk-management systems. Furthermore,
manage such critical issues as food safety and intellectual
they found that CADENA could next be expanded to
property compliance while reducing staff time spent on
automate the entire AEO certification process, and to
reconciling agencies’ respective databases. It could also
other customs functionalities that require engagement
be used to drive interoperability between a single window
with different stakeholders, both public and private.
and PCS. However, operationalizing data-sharing among
agencies will take serious political leadership for agencies
To build on the findings made during CADENA and to
to work together – yet this work is already being done.
incorporate new developments in blockchain technology
For example, the UK government has piloted a blockchain
in 2018, a new phase is proposed to develop CADENA
scheme to share data and coordinate actions among the
v.1 during 2019. CADENA v.1 will scale to other
country’s 28 border agencies.31 A recent proof of concept
countries, such as Colombia, and will benefit from the
established that blockchain can be used to securely share
synergies of LACChain (see Box 5) to address further
the results of sensitive risk checks involved with granting
issues related to governance, administration, data
firms AEO status.32
privacy, sustainability and scalability.
End-to-end visibility of shipments and supply chains. Automation of workflows and customs duty and fee
As changes are made on the blockchain, new blocks payments. Smart contracts can be built on a blockchain
are added over time, forming a chain of data that can to do x when y happens and thus automate what, in
serve as an audit trail for border agencies to detect fraud many cases, are still manual processes involving costly
and suspicious patterns, manage AEO certifications and intermediaries. Smart contracts could be applied in single
possibly also establish new categories of trust, such as windows to automate customs fee, duty and tax payments.
“trusted e-trader” programmes for small firms that have a For example, smart contracts could trigger advance
solid track record of compliant trade transactions but which payment from the importer when customs authorities
do not necessarily qualify for traditional AEO status.34 The have completed pre-arrival processes for the importer’s
end-to-end visibility will be even greater as a larger set of consignment. Automating payments would reduce
players in the trade networks, such as lines and logistics importers’ shoe-leather costs of making payments and
firms, adopt blockchain. More generally, blockchain could presenting paper-based proofs that payments had been
help agencies move from a transactional (shipment-based) made and reduce customs’ payment reconciliation costs.
risk-management approach to an entity-based approach, It could possibly also reduce legal disputes and litigation
thereby enabling audit trails of companies and allowing costs and increase trust and confidence in the supply chain.
companies themselves to better reuse their data included in
single windows. Improved trustworthiness of data entered into single
windows. Once entered into blockchain, the data cannot
be modified. Data records on all entries and transactions
are timestamped and any changes and additions will Box 3: Technologies to complement blockchain in
be visible on the chain to all stakeholders, as the one single windows
and only version of the “truth”. As such, blockchain can
improve the trustworthiness of data entered into single Blockchain has several potential use-cases for single
windows and used by border agencies. Granted, like windows – and can also be usefully complemented by
any database, blockchain is only as useful as the data other technologies. For example, machine learning can be
included in it; the veracity and quality of data can be a powerful complement to blockchain in border agencies’
increasingly assessed with AI-driven tools – and by making risk management and fraud prevention, helping agencies
machines rather than humans impute data on ledgers predict risks and invest resources in high-risk shipments
when possible.35 Blockchain’s security is also still debated. while facilitating licit trade. Artificial intelligence (AI) can
The companies developing blockchain technologies are help agencies transform unstructured data in trade
strongly encouraged to improve blockchain’s security. Much documents into structured data that enables data and
ultimately depends on the security architecture built around information on trade documents to be used for pattern
blockchain implementations. recognition and risk analysis.
Authentication of identities and portability of identities Robotic process automation can further streamline well-
and data across service providers, including for functioning single windows’ workflow by automating
commercial purposes. Blockchain can help users mundane and repetitive processes, enabling agency staff to
to authenticate and control their identities and data. invest their time in serving users and performing other higher-
Blockchain-based identities can be “self-sovereign”, value work, and reducing the odds of human error. Internet
administered by the identity holder and based on the of things (IoT) applications can further border agencies’ and
decentralized identifiers (DIDs) that are much like a secure single window users’ visibility of shipments end-to-end –
website. Each DID can be assigned to different parts of for example, IoT-enabled physical tamper detection with
a user’s identity; one DID could be a company’s name; edge-computing and sensors can enhance the integrity and
another, its federal identification number; still another, availability of data for border agencies on the blockchain and
its Harmonized System (HS) codes, and so on. Single enable ledger updates and payment transactions.
window users could be encouraged to access and carry
these pieces of their digital identity and use their DIDs and Single windows can gain when blockchain is adopted
transactions authenticated by blockchain for commercial in the broader trade ecosystem. Gains from blockchain
purposes. For example, companies that have managed in single windows can also expand as blockchain becomes
to secure an AEO status could use that data point to more widely adopted in the trade network, and as banks,
negotiate better cargo or corporate insurance rates, and ports, terminal operators, logistics providers and tax
small companies could use their blockchain-based trade authorities adopt blockchain solutions to streamline their
compliance data to better access trade finance.36 operations. Bringing the various players that “touch” a trade
transaction on a common blockchain could drastically
The concept of a Global Trade Identity (GTID) – to reduce reduce re-entry of data in trade transactions, enhance
supplier and customer risk in supply chains by enabling any intermediaries’ visibility of shipments end-to-end and enable
supply chain partner to validate the trustworthiness of a border agencies to access more diverse and reliable supply-
legal entity with which it looks to do business – can, in the chain data – which can help optimize their risk-targeting and
blockchain environment, offer a commercially and politically verify the origin of products, for example. Multistakeholder
neutral identity infrastructure.37 It would help develop the blockchains will have a critical need for common
concept of a trade data pipeline, in which commercial, understandings on governance and data, and IP rights.
logistics and regulatory trade data associated with an
operation “travels” through a pipeline that could be read Such multistakeholder solutions are already being
and used by public and private stakeholders according to developed, including the Maersk-IBM TradeLens platform
their level of access to the data. for logistics, the we.trade platform for trade finance and
a range of national initiatives. For example, Mexican
customs, customs brokers, Hutchison Ports, and the Port
of Veracruz are together piloting a blockchain solution
that provides them with common, real-time data on the
location and documents associated with a given export
shipment. The Korean Customs Service has worked with
the logistics community to explore blockchain’s usefulness
in the accuracy and transparency of data on certificates
of origin; more than 50 Korean companies on the export
side, alongside five working groups and ten companies
based in Viet Nam and Singapore on the import side,
have participated in pilots.38 The European Commission’s
Directorate-General for Taxation and Customs Union
(DG-TAXUD) recently tested blockchain’s value added in
temporary admission and excise domains, finding that
blockchain has significant potential in these specific areas
of trade and revenue collection.39
Guidelines for operationalizing use-cases
Blockchain has the potential to generate new efficiencies

and provide new capabilities, both for the agencies that
form part of single windows and the businesses that use
them. The biggest question mark for border agencies
is to what extent blockchain adds new value in single
windows, and what it actually takes to effectively pilot and
operationalize blockchain. For staff at border agencies
to champion blockchain requires compelling answers to
these questions.
There are at least six key steps and considerations when

introducing blockchain into single windows (Table 4).
Table 4: Guidelines for operationalizing blockchain use-cases in single windows

Create vision and Create governance Build technology Manage user Measure impact Iterate
business case structure, including architecture and identities and report on it
for data, and integrate technology and data
implementation plan
Ensure political support Establish a governance Develop the technology Test a single, Develop and track Assess the pilot and
exists for trade facilitation structure with mandate, architecture, acquire interoperable identity for KPIs, e.g. time release consider ways to
scope, responsibilities blockchain technologies single window users and indicators; operational improve and scale it
Establish a “grand and data-share rules and integrate blockchain enable them to make efficiency in border
vision” for blockchain with existing databases their data portable agencies; and trade Consider blockchain’s
in the single window Standardize data entered and technologies facilitation and SME emerging capabilities and
Actions and a business case for on blockchain and data- Possibly develop a new trade growth rethink its governance
stakeholders security protocols Retrain agencies’ IT identity for blockchain
staff and acquire new users, e.g. GTID Reward agencies’ staff Assess governance
Adopt blockchain in Define reward systems capabilities with technical for meeting targets structure built into step 2
pilots and iterating to for staff in agencies to knowledge of blockchain Communicate technology defined in steps 1 and 2
improve outcomes implement blockchain improvements to users Consider range of
applications in other
Bring together a Define data-storage niche areas in single
multidisciplinary team needs windows
to pilot and apply
blockchain Assess compatibility of
blockchain with existing
Define how to cover regulations; consider
costs and how to regulatory sandboxes
engage development to fuel blockchain’s
banks and donors development
Who Head of state, agency Agency heads, IT leads Agency IT leads, experts Agency heads, IT leads Agency front-line staff, Implementors, private-
drives heads, private-sector and users; international report to head of state sector users
users, focus groups experts
Level
of effort
needed
What is the outcome Where is blockchain How does the new Could users make their What is the improvement How to improve on the
to be attained by using managed from? solution integrate data portable and for from baseline and last process and outcomes in
blockchain? with the current what purposes, and how measurement? steps 1-5?
Key What are the solutions (process and is off-chain data shown
questions What is in it for each responsibilities of the technology)? to outsiders certified as What are the weakest What new properties of
to address stakeholder? different stakeholders and “real”? links in implementation blockchain technology
what are stakeholders Can IT create a and why? and other technologies
How are costs covered? rewarded for? functionable “digital twin” Are data-storage needs could be employed?
of a trade? an issue? How does my country
How could development How are data and compare to others that What is the optimal
banks and donors best document-sharing Does blockchain provide How to best are also working on trade governance structure
support via technical governed among a trusted interaction layer communicate the facilitation, before and if pilot is scaled or
advice and funding? stakeholders? for sharing events and benefits of blockchain after blockchain was replicated?
information/data? to firms that use single adopted?
How to define and windows? In which other areas of
differentiate access Does blockchain also trade facilitation could
privileges? need to account for and blockchain be tested?
support wider supply
Which international data chain business models?
standards should be
considered?

1. Create a ‘grand vision’ and make the Box 4: Lessons learned from piloting blockchain in
business case Korean customs and trade ecosystem
Ensure high-level political support exists for trade The Korean Customs Service (KCS) has been highly
facilitation. Single windows work best in countries in which active in piloting blockchain. In 2018, KCS conducted
the leadership is firmly committed to trade facilitation. The three pilot projects: the E-clearance Blockchain
same is true for blockchain applied in single windows: It has Project; the Blockchain Cross-Border Project with
a fighting chance to work if its adoption and implementation Viet Nam, aimed at enhancing the reliability of shared
are supported by the highest levels of government.40 certificates of origin data via blockchain; and the
Export Logistics Blockchain Project with Samsung,
Establish a “grand vision” and make the business case Hyundai Glovis, Busan Port Terminal, Shinhan Bank and
for stakeholders. The decision to use blockchain requires more than 60 Korean companies, aimed at exploring
a vision of the benefits that it can generate for border whether blockchain could enhance the accuracy
agencies and trade facilitation. This initial vision will inform and transparency of data generated by the logistic
further steps, such as specific key performance indicators community.
(KPIs), blockchain’s governance model and technology
architecture and agencies’ reward systems. Since the main To pave the way for the pilots, KCS created a dedicated
impediment to blockchain’s adoption tends to be defining a division for blockchain’s adoption, and selected as
business model in which all stakeholders perceive benefits, project managers staff with a strong understanding
blockchain champions need to spend time and energy to of blockchain technology. These staff had gained the
develop compelling value propositions for each stakeholder necessary knowledge through training, participation in
group – in this case, border agencies and the private forums and seminars and capacity-building provided by
sector (Box 4). Focus groups are a useful way to quickly blockchain service providers. To develop the pilots, KCS
understand players’ pain points and preferences. Activities worked extensively to interact and engage stakeholders,
and games in which players are encouraged to work holding many meetings and workshops at which the
together can also be useful – such strategies have been stakeholders could define the data that could be shared,
used to train agencies to use customs software and for port and share information related to export logistics and
ecosystem actors to use a PCS. their respective business processes.
Adopt blockchain in pilots and iterating to improve KCS’s ICT Development Division led the technology’s
outcomes. It is useful to define the initial steps towards the adoption; the blockchain platform was developed by
grand vision as pilots that enable stakeholders to test the Samsung and KCnet. It was geared to generating and
blockchain technology and explore its benefits in various sharing information such as trade documents, export
specific use-cases, rather than being locked into using declarations, bills of lading and letters of credit among
it indefinitely. Experimentation is also important in that others. The platform minimized manual work in the trade
blockchain is a nascent technology in which the benefits process and greatly improved the transparency and
have yet to come to full view, and stakeholders need to be reliability of data, as the data is collected from multiple
socialized into using it. sources and is immutable.
Bring together a multidisciplinary team to implement The main driver of success behind KCS’s effort was its
pilots. Implementing blockchain in single windows will early realization that the most important challenge in
require multidisciplinary teams of technology experts and using blockchain is not the adoption of the technology,
domain experts in trade facilitation, as well as input from but (1) consensus-building on the need for, and
private-sector users. benefits of, blockchain with internal staff and external
stakeholders; and (2) extensive dialogues on how
Define how costs are covered. Questions related to blockchain will be applied – especially how stakeholders’
funding and burden-sharing should not derail a blockchain business processes ought to be updated to best
project before it gets started. It is important to define early facilitate trade when blockchain is used.
on how the blockchain project is paid for and articulate that
to stakeholders.
2: Create a governance structure, including
Partner with development banks for technical advice for data, and an implementation plan
and funding. Developing countries can tap development
agencies to bring valuable technical knowledge and Establish a governance structure around blockchain.
financial resources into blockchain pilots. Multilateral Blockchain’s governance architecture needs to be
development banks and donors are starting to increase sorted out early on, as many subsequent decisions
their experience in blockchain implementation and can also flow from it. This includes the mandate, scope and
help developing countries learn from each other, cooperate responsibilities of each participating stakeholder, as well as
and measure blockchain’s effects on trade costs and trade understanding how data is shared and which technologies
flows. For their part, development organizations could are used. It is also important to define from where the
condition their support on recipient governments’ actions to blockchain application will be managed, a particularly
digitize trade documents and processes and report on KPIs important question in multi-country and/or multi-ledger
from the blockchain pilots. implementations. Important approaches include standards
and solutions such as IDB’s LACChain where countries Box 5: Enabling blockchain development in Latin
can plug the blockchains in their single windows as nodes America and the Caribbean
into an interoperable regional blockchain architecture (Box
5). Governments that are interested in making their single Over the past five years, different blockchain-based
windows interoperable with each other will also need to solutions have been attempted in the LAC region. Even if
review the interoperability of their regulations and standards. some of them have been successful at a pilot stage, few
have scaled. In 2018, IDB Lab, the innovation laboratory
Standardize and secure data. The use of standardized of the Inter-American Development Bank, launched
data (data semantic, data format and data access protocol, the Global Knowledge Alliance for the Development
perhaps as in the WCO Data Model) ensures that any of the Blockchain Ecosystem in Latin America and the
stakeholder’s systems interface seamlessly with the Caribbean (LACChain).
blockchain network.41 Blockchain’s governance structure
should inform how data on a blockchain is secured; for LACChain is aimed at accelerating the development of
example, agency staff’s access to review the data on a the blockchain network in LAC. It solves several specific
blockchain is a vulnerability to be managed. Encryption challenges to blockchain’s scalability in the region:
techniques used today may be compromised in the future, limited coordination among network stakeholders in
and thus the security management needs to continually exploring an alternative to governance structures; limited
evolve. Implementations will also need to consider how infrastructure capabilities; lack of standards for scalable
stakeholders’ off-chain data is integrated with on-chain and interoperable solutions; and high transaction costs.
data in a secure manner. Mitigating these types of risks LACChain works in four areas: (1) partnerships between
will introduce some moderate cybersecurity costs. The public-private stakeholders, (2) the technological
ISO 27000 series of standards regarding the security of IT infrastructure, (3) the marketplace of applications, and (4)
systems can provide general guidance.42 data analytics to measure social impact.
Define reward and accountability systems for blockchain LACChain is creating a hybrid public-permissioned
adoption. Blockchain pilots need to be co-owned by network that combines the features of public and
stakeholders in the agencies that are responsible for their permissioned blockchains. It offers networks that
implementation. In particular, a sense of co-ownership are decentralized, while requiring that users are
among two IDB departments and beneficiary customs was authenticated and comply with the law, as the
vital to CADENA’s shift and successful implementation. blockchain will be regulated and there are no transaction
Primary staff need to coordinate work through weekly fees. In late 2018, LACChain launched its first public-
meetings, and be rewarded when meeting milestones and permissioned test-net using the software Quorum, and,
KPIs, and for transparently measuring impacts. in 2019, will release a second test using Pantheon.
Define needs for data storage. Whether data is stored architecture and to integrate existing systems with the
directly on the ledger or off-chain with hashes on the ledger, newly developed blockchain system. However, these fixed
the storage costs will need to be covered. Data storage upfront costs may be offset by the increased efficiency
costs can be roughly based on typical data storage costs. and lower variable costs over time, comparable to
conventional IT systems.
Consider blockchain’s compatibility with digital
regulations and establish regulatory sandboxes for Train IT staff and acquire new technical capabilities to
blockchain. Ultimately, legal frameworks on electronic operationalize blockchain in agencies’ day-to-day work.
signatures, data privacy and transfer, and internet Optimizing blockchain in single windows takes both
intermediary liability need to be made compatible with domain expertise and technical know-how. It requires
aspirations for digitization and use of technologies such as the training of agencies’ existing IT personnel – Korea
blockchain. For example, smart contracts, if used, need Customs Service set up a dedicated team that had to
to be embedded in laws that make digital signatures and undergo training to manage blockchain pilots. For non-IT
smart contracts enforceable in courts and, if used among personnel and businesses that use single windows, the
players from two different countries, are understood in impacts are minor, as front-end interfaces can remain the
the same way in these countries’ legal frameworks. It will same or show little change.
also be useful to consider a regulatory sandbox approach
to blockchain, for companies to bring new blockchain 4: Manage user identities and data
applications to market without having to comply with the
gamut of regulations that might otherwise apply.43 Test a single, interoperable identity for single window
users and enable them to make their data portable. A
3: Build technology architecture and blockchain pilot can enable a government to test, perhaps in
integrate technology partnership with various public- and private-sector entities,
the concept of a single digital identity for single window
Develop the technology architecture, acquire blockchain users. Enabling companies to make their transactional data
technologies and integrate blockchain with existing portable and use it for commercial purposes, such as for
databases and technologies. Blockchain deployment securing insurance or trade finance, could be tested as a
requires unique upfront costs to develop the IT standalone use-case or in the context of any one use-case
to understand how the stakeholders respond.
Communicate technology improvements to users and
ask about their user experience. Single window users
need to be educated about the benefits of blockchain, and
their views need to be included in assessments of pilots
and implementations.
5: Measure impact and report on it

Develop and track KPIs of single windows powered
by blockchain. Blockchain’s impact on single windows
and trade costs needs to be measured for governments
to identify improvements enabled by blockchain, make
the business case for scaling the solution, harvest lessons
learned and keep agencies and blockchain champions
accountable. Important KPI measures should at least
include impacts on border agencies’ operations and
expenditures and a range of second-order economic
outcomes, such as impacts on trade facilitation, SME trade
and trade growth. They could also include the granular
indicators in the WCO Time Release Study.44 Baseline
measures should be established before blockchain is
adopted, and investment in KPI management and reporting
needs to be made upfront, not after blockchain has
been piloted. To the extent that several countries adopt
blockchains in single windows, it is useful to collect similar
data points – development banks can produce such
common data.
6: Iterate
Assess the pilot and consider ways to improve
and scale it, including by considering blockchain’s
emerging capabilities and rethinking its governance.
Often, blockchain models and governance discussions
are “frozen in place”, anchored in a certain understanding
of the technology when it was first tested – even though
blockchain and its user base are rapidly evolving, offering
and demanding different functionalities. As they experiment
with blockchain and other technologies, single windows
need to keep up with how the technology is maturing, what
new providers are emerging and which new players are
adopting blockchain – and ask themselves whether the
governance and IT architectures that were initially put in
place continue to optimize outcomes.

Next steps
This policy framework has presented real-life problems in

single windows, taken a sober look at how and whether
blockchain could solve them, and offered useable guidelines
for governments to adopt blockchain in single windows.
This framework has found that blockchain has the

potential to solve various pain points facing single windows
and bring new efficiencies and capabilities to border
agencies. For example, it can be useful in enhancing
interoperability of national single windows and of agencies
within a country’s single window, automating contractual
obligations such as payment of customs duties and fees,
enabling traceability of products across supply chains, and
attenuating agencies’ concerns about the trustworthiness
of data at their disposal.
However, blockchain’s benefits, just like the benefits of

single windows, will critically hinge on the rigour of its
implementation. Governments that want to pilot and test
blockchain in single windows should have a clear vision
of how blockchain can advance the attainment of trade
facilitation objectives; understand stakeholders’ pain
points and develop a compelling value proposition for
each stakeholder to adopt blockchain; build a governance
structure and an enabling legal environment and
technology architecture while providing clear targets and
KPIs for blockchain implementation; be flexible to change
course and iterate to improve outcomes; and, in particular,
secure high-level political support and collaboration with
the private sector.
This framework is intended to pave the way for blockchain

pilots around the world. The World Economic Forum and
the Inter-American Development Bank will be working
to implement proofs of concept with a subset of LAC
governments to pilot blockchain use- cases, use the
implementation guidelines discussed here and build
LAC governments’ capacity to understand and apply
new technologies on border clearance while sharing the
lessons learned.

Appendix
The graphic below walks through an example of how the

guidelines for operationalizing use-cases (see the earlier
section on this subject) can be applied. The example refers
to the Inter-American Development Bank’s CADENA project.
Create vision and Create governance Build technology Manage user Measure impact Iterate
business case structure, including architecture identities and report on it
for data, and and integrate and data
implementation plan technology with
other systems
In early 2018, the IDB The pilot project was Together with the Data privacy and user Approach developed in The pilot project resulted
staged a workshop crafted collaboratively selected technological identities were managed phases 1 and 2 allowed in a globally innovative
to identify three Latin during the workshop, vendor, an ad hoc to control access to for a fast and measurable customs management
American countries’ by first learning about blockchain architecture and functions in the pilot over the pilot system and in several
customs pain points blockchain as the was adopted for blockchain, thereby project. Among gains: lessons learned related
when sharing data with proposed technology, validating the exchange preventing the deletion to the governance, data
AEO-certified companies and then developing of data or alteration of data and Accelerated process privacy and additional
common understandings enabling audit trails of granting benefits functionalities of the
Together with these of the business Beneficiary customs to new AEO-certified solution. These will be
countries’ customs, the challenges to be tackled opted out of integrating Portability of user firms in the countries addressed during the
IDB drafted a vision and CADENA with legacy identities and data is of destination for their second phase, CADENA
business case; the aim This resulted in the systems during the pilot, explored in future cargo operations v.1
was to contribute to the definition of the to keep the focus on the
facilitation and securing functionalities, technical exchange of data Increased transparency CADENA v.1 will
of trade through the requirements and and traceability of catalyse synergies with
sharing of each other’s data management Customs agreed that cross-border data LACChain, a region-wide
AEO certification data in requirements for the CADENA would be initiative facilitated by the
a secure fashion in real solution, and were enhanced with a Power Strengthened security IDB to develop a regional
time included in RFP App to enable customs of supply chains by blockchain ecosystem
specifications officials and AEO- facilitating access to in Latin America and the
Blockchain was identified certified companies to data of new AEO- Caribbean
as the technology to An ad hoc governance access the platform certified companies
be validated to create structure was defined through mobile devices and also to AEO CADENA v.1 will evolve
efficiency and security in for the pilot project, suspensions and towards a model of
the exchange of data consisting of a private cancellations in real autonomous and
blockchain ecosystem time across countries’ sustainable governance
The project was branded of the customs customs and to one for data
“CADENA” (“Chain”) administrations with privacy provisions, by
the initial support and Increased knowledge benefiting from the
The IDB funded the pilot participation of the IDB of the application of technology architecture
project and created an and the technological new technologies provided by LACChain.
interdisciplinary team vendor among customs and This will further enable
with IDB’s trade and the broader trade CADENA’s scalability to
technology experts Interaction and constant community further customs such as
and beneficiaries – the feedback among the that of Colombia
customs administrations IDB, countries and the
of Costa Rica, Peru and technology vendor
Mexico. Chile joined were established
afterwards during the design and
implementation phase
throughout 2018

Acknowledgements
The World Economic Forum’s Centre for the Fourth Nicolas Buhmann, A.P. Moller-Maersk A/S
Industrial Revolution and the Inter-American Development Pandey Pashupati, World Customs Organization (WCO)
Bank would like to acknowledge the valuable contributions Philippe Isler, World Economic Forum
from the individuals below. Rebecca Liao, SKUchain
Richard Morton, International Port Community
The Global Trade Single Window project involved a global, Systems Association (IPCSA)
multi-industry and multistakeholder community to co- Saverio Puddu, Linklaters
design and pilot proofs of concept and then share lessons Sean Doherty, World Economic Forum
learned in implementing policy frameworks. This report is Soichi Furuya, Hitachi
based on numerous discussions, interviews, workshops Solomon Anzagra, United Nations Conference on Trade
and webinars – and the combined effort of all involved. and Development (UNCTAD)
Opinions expressed herein may not necessary correspond
Stuart Davis, Latham & Watkins
with those of everyone involved with the project.
Theodore Waddelow, Visa
Tomás Deane, Ministry of Production and Labor
of Argentina
Project Team
Virginia Cram-Martos, Triangularity Sàrl
Inter-American Development Bank Young-Mi Kim, Korean Customs Service
Alejandra Radl, Integration and Trade Specialist Yves Jobin, Jobin Consult
Sandra Corcuera-Santamaria, Customs and Trade
Facilitation Senior Specialist
Lorena Cano, Open Knowledge Senior Associate Interviewees
World Economic Forum Aurelio Garcia, Center for International Private Enterprise (CIPE)
Ziyang Fan, Head of Digital Trade Avi Dutt, Ministry of Shipping of India
Jesse Lin, Project Specialist, Digital Trade Beth Frisher, Port of Oakland
Carmen Ivonne Gómez Díaz, Ministry of Commerce,
Nextrade Group LLC Industry, and Tourism of Colombia (MINCIT)
Kati Suominen, Chief Executive Officer Cecilia Fernandez Ruiz, Everis
Cecilia Valenzuela, Inter-American Development Bank
Eduardo Rodriguez Apolinario, Customs of Dominican
Contributors Republic
Emmanuelle Ganne, World Trade Organization (WTO)
Ady Beitler, Inter-American Development Bank Frank Heijmann, Customs Administration of the Netherlands
Agnes Budzyn, ConsenSys AG John Bescec, Microsoft
Avi Dutt, Ministry of Shipping of India Marco Antonio Siqueira, Federal Revenue Service of Brazil
Barbara Kotschwar, Visa Rodrigo Contreras Huerta, Inter-American
Cecilia Fernandez Ruiz, Everis Development Bank
Cuitlahuac Baños, Inter-American Development Bank
Tomás Deane, Ministry of Production and Labor of Argentina
Emmanuelle Ganne, World Trade Organization (WTO)
Vincent Annunziato, United States Customs and Border
Erin English, Microsoft
Protection
Gadi Benmoshe, Israel Ports Development
& Assets Company
Henrik Hvid Jensen, TrustWorks
Jaime Granados, Inter-American Development Bank Contacts
Jan Hoffmann, United Nations Conference on Trade
and Development (UNCTAD) For questions about the World Economic Forum’s work
Jens Munch Lund-Nielsen, IOTA Foundation in Digital Trade, please contact:
John Bescec, Microsoft
Krista Lucenti, Inter-American Development Bank Ziyang Fan, Head of Digital Trade,
Michele Nati, IOTA Foundation [email protected]
Luca Castellani, United Nations Commission on
International Trade Law (UNCITRAL) Jesse Lin, Project Specialist, Digital Trade,
Nadia Hewett, World Economic Forum [email protected]
Endnotes
1. http://www.unece.org/uncefact/tfrecs.html and the technical note at http://www.unece.org/fileadmin/DAM/cefact/cf_plenary/2017_Plenary/ECE_

TRADE_C_CEFACT_2017_10E_TechnicalNoteSW.pdf (links as of 18 June 2019).
2. https://untfsurvey.org/world (link as of 18 June 2019).
3. For example, http://www3.weforum.org/docs/WEF_36073_Paperless_Trading_How_Does_It_Impact_the_Trade_System.pdf (link as of 18 June 2019).
4. http://www.doingbusiness.org/~/media/WBG/DoingBusiness/Documents/Annual-Reports/English/DB17-Chapters/DB17-CS-Trading-across-borders.
pdf (link as of 18 June 2019).
6. https://www.slideshare.net/Africanalliance/implementation-of-the-kenya-national-single-window-systemkentradeswc2016 (link as of 18 June 2019).
7. https://www.slideshare.net/Africanalliance/the-single-form-for-foreign-trade-operators-guce-gie-cameroon (link as of 18 June 2019).
8. World Bank’s “Doing Business”, various years.
9. https://blogs.iadb.org/integration-trade/en/how-does-trade-respond-when-borders-are-simplified-via-one-stop-systems/ (link as of 18 June 2019).
10. World Bank “Doing Business” database, http://www.doingbusiness.org/en/data (link as of 18/6/19).
11. http://www3.weforum.org/docs/WEF_36073_Paperless_Trading_How_Does_It_Impact_the_Trade_System.pdf (link as of 18 June 2019).
12. Acceptance of paper or electronic copies of supporting documents required for import, export or transit formalities.
13. https://btca-prod.s3.amazonaws.com/documents/237/english_attachments/Tanzania-Case-Study.pdf?1515010379 (link as of 18 June 2019).
15. To be sure, governments have sought to exchange information in certain regions: They have exchanged information in the ASEAN, as well as some
data from customs declarations; Australia and New Zealand share electronic information on SPS certificates; and the ministries of transport of Japan,
China and Korea have a common cargo status to track and query requirements. Some good strides have been made. For example, Nordic and Baltic
countries have shared data to gain a fuller picture of such patterns as Chinese supplier networks of wood products, to better enforce the EU’s timber
regulations.
16. https://www.unescap.org/sites/default/files/CROSS-BORDER%20SINGLE%20WINDOW%20INTEROPERABILITY.pdf (link as of 18 June 2019).
17. This is not a new theme: One-third of countries in the UN paperless trade survey have a national legislative framework and institutional arrangements to
ensure border agencies cooperate with one another.
18. National single windows do not necessarily have the same level of integration. See UNECE recommendation and guidelines on establishing a single
window: https://www.unece.org/fileadmin/DAM/cefact/recommendations/rec33/rec33_trd352e.pdf (link as of 18 June 2019).
19. Interviews with customs and single window operators in the Americas; and https://www.slideshare.net/Africanalliance/challenges-for-an-implementation-
of-an-electronic-single-window-guichet-unique-de-la-cte-divoire, https://www.researchgate.net/publication/276605029_Study_on_the_Challenges_
of_Implementing_Single_Window_Concept_to_Facilitate_Trade_in_Sri_Lanka_A_Freight_Forwarder_Perspective, http://www.joebm.com/papers/302-
BM00027.pdf and https://commons.wmu.se/cgi/viewcontent.cgi?article=1648&context=all_dissertations (links as of 18 June 2019).
21. These challenges are quite common in developing nations. See, for example, https://commons.wmu.se/cgi/viewcontent.cgi?article=1648&context=all_
dissertations and http://www.joebm.com/papers/302-BM00027.pdf (links as of 18 June 2019).
23. http://www.joebm.com/papers/302-BM00027.pdf (link as of 18 June 2019).
24. https://www.slideshare.net/Africanalliance/challenges-for-an-implementation-of-an-electronic-single-window-guichet-unique-de-la-cte-divoire (link as of
18 June 2019).
25. For excellent analyses of the use of blockchain in single windows, see https://www.unece.org/fileadmin/DAM/cefact/cf_plenary/2019_plenary/
CEFACT_2019_INF03.pdf and https://www.wto.org/english/res_e/booksp_e/blockchainrev18_e.pdf. For broader analysis of blockchain and
technologies as enablers of trade, see https://www.amazon.com/Revolutionizing-World-Trade-Technologies-Opportunities/dp/1503610713/ref=sr_1_1?
qid=1559683158&refinements=p_27%3AKati+Suominen&s=books&sr=1-1 (links as of 18 June 2019).
26. For a good review, see https://www.weforum.org/whitepapers/inclusive-deployment-of-blockchain-for-supply-chains-part-1-introduction (link as of 18
June 2019).
27. Granted, blockchain’s security is still debated: Some argue that blockchain is a more secure database than others; others claim that it is increasingly
susceptible to hacking; and still others think that risks could arise if the blockchain network were to be outsourced by the government to a private third
party or if on-chain data is exported to an off-chain database that then is no longer immutable. Companies developing blockchain technologies are
strongly urged to improve the security around blockchain, so the security is evolving and improving; much ultimately rests with the security architecture
surrounding blockchain implementation.
28. For example, in line with the World Customs Organization (WCO) Data Model.
29. See also https://www.bakermckenzie.com/en/-/media/files/expertise/fig/br_fig_blockchainsandlaws_jul17.pdf (link as of 18 June 2019).

30. https://www.imda.gov.sg/-/media/imda/files/industry-development/call-for-proposals/trade-trust-rfi_002_final_march21.pdf?la=en (link as of 18 June
2019).
31. https://www.csis.org/blogs/future-digital-trade-policy-and-role-us-and-uk/blockchain-accelerate-transatlantic-trade (link as of 18 June 2019).
32. https://cryptoslate.com/uk-customs-service-halts-blockchain-border-project-with-brexit-looming/ (link as of 18 June 2019).
33. https://mag.wcoomd.org/magazine/wco-news-87/cadena-a-blockchain-enabled-solution-for-the-implementation-of-mutual-recognition-arrangements-
agreements/ (link as of 18 June 2019).
34. https://docs.wixstatic.com/ugd/25efdb_ddca049eff6b45bcaab793f8b20223c1.pdf (link as of 18 June 2019).
35. For example, https://csis-prod.s3.amazonaws.com/s3fs-public/publication/181101_Suominen_Blockchain_v3.pdf (link as of 18 June 2019).
36. Such portability of data across domains would be akin to the open banking practices whereby small companies can access and carry their various
transactional data, such as from online platforms and financial services, to help lenders underwrite their loans, thus opening access to finance for the
long tail of “thin-file” users. Trade single windows could also become the first-movers and incubators of new national blockchain-based corporate
identities, simplifying companies’ interactions with national, state and local governments.
37. GTID could as such be recognized across the whole government-business network and eliminate the need for intermediaries’ services providers to
certify and recertify a business or individual. It would also make it more feasible to designate full data ownership to the trader, which could then share all
or some relevant information on a transaction to selected stakeholders, such as share the invoice with the buyer and the bank, packing list with freight
forwarder, compliance documents with government agencies and so on. See https://www.weforum.org/agenda/2019/05/global-trade-identity-can-be-
the-cornerstone-of-paperless-trade/ (link as of 18 June 2019).
38. https://www.ccn.com/korea-customs-authority-to-test-blockchain-clearance-system-for-imports-exports/ (link as of 18 June 2019).
39. https://www.wto.org/english/res_e/reser_e/session_2c_4_zahouani_saadaoui_dg_taxud_blockchain_v1.0.pdf (link as of 18 June 2019).
40. This may paradoxically mean that successful implementation of blockchain may be most feasible where its value add is quite low – single windows
that are already digitized and where players are already interoperating well, as it is in those single windows where players have summoned the political
wherewithal to overcome the problems that need to be solved for blockchain to be adopted and useful.
41. http://www.wcoomd.org/en/topics/facilitation/instrument-and-tools/tools/data-model.aspx (link as of 18 June 2019).
42. For encryption-related concerns, see existing discussions in the context of bitcoin, such as https://bitcoin.stackexchange.com/questions/88/is-bitcoin-
future-proof (link as of 18 June 2019).
43. For example, https://csis-prod.s3.amazonaws.com/s3fs-public/publication/181101_Suominen_Blockchain_v3.pdf (link as of 18 June 2019).
44. The Time Release Study is an internationally recognized tool to measure the actual time required for the release and/or clearance of goods, from the
time of arrival until the physical release of cargo, with a view to finding bottlenecks in the trade-flow process and taking the corresponding necessary
measures to improve the effectiveness and efficiency of border procedures: http://www.wcoomd.org/en/topics/facilitation/instrument-and-tools/tools/
time-release-study.aspx

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What are the benefits of trade single windows?

What are the benefits of trade single windows?

What are some of the pain points of current trade single windows?

What are some of the pain points of current trade single windows?

White Paper

State of single windows 5

Potential use-cases with blockchain 10

Guidelines for operationalizing use-cases 15

© World Economic Forum

2019 – All rights reserved

No part of this publication may be reproduced or

The views expressed are those of certain participants in

The Fourth Industrial Revolution, driven by rapid technological change and

Building on global developments and aspirations for TradeTech, the World

Windows of Opportunity: Facilitating Trade with Blockchain Technology 3

Such challenges undermine government progress in

4 Windows of Opportunity: Facilitating Trade with Blockchain Technology

Source: Author processing from the UN Paperless Trade Database, 2017

Windows of Opportunity: Facilitating Trade with Blockchain Technology 5

Digital Countries that have

In Kenya, the average time spent on

Exporters and importers in countries with

Reduce invoicing times by

Make trade requirements Small and remote firms accelerating their

6 Windows of Opportunity: Facilitating Trade with Blockchain Technology

Windows of Opportunity: Facilitating Trade with Blockchain Technology 7

Concerns about data trustworthiness and security

– Limited trustworthiness of data entered on single

8 Windows of Opportunity: Facilitating Trade with Blockchain Technology

Main pain points Selected reasons Main impacts

Duplication of efforts, delays and lack of end-

Increases data re-entry, probability of

Unstructured data embedded in trade Limits opportunities for sophisticated data

Increases overheads as staff in each agency

Limits agencies’ ability to verify origin of goods,

Limited trustworthiness of data entered on Undermines the credibility and usefulness of

Limited Makes companies reluctant to use single

Windows of Opportunity: Facilitating Trade with Blockchain Technology 9

10 Windows of Opportunity: Facilitating Trade with Blockchain Technology

First, data on blockchain’s impact is still very limited: Piloting

Secondly, it is premature to determine blockchain’s unique

What can be said is that blockchain is not a silver bullet that

This report seeks to help governments consider where

Windows of Opportunity: Facilitating Trade with Blockchain Technology 11

Main pain Selected reasons Use-case Blockchain’s potential Alternative/

Limited Distrubuted database

Distrubuted database Immutability

Digital identity Auditability Immutability

12 Windows of Opportunity: Facilitating Trade with Blockchain Technology

Blockchain has the potential to generate new efficiencies

There are at least six key steps and considerations when

Table 4: Guidelines for operationalizing blockchain use-cases in single windows

Windows of Opportunity: Facilitating Trade with Blockchain Technology 15

5: Measure impact and report on it

18 Windows of Opportunity: Facilitating Trade with Blockchain Technology

This policy framework has presented real-life problems in

This framework has found that blockchain has the

However, blockchain’s benefits, just like the benefits of

This framework is intended to pave the way for blockchain