State-of-the-art customs at the forefront of global trade transformation
Trade is not just a function of supply and demand; it is a function of sound operations. Swift, secure, state-of-the-art customs systems are critical to creating global supply chains resistant to corruption and illicit activity. These two elements cause substantial revenue loss, fracture economies and threaten public safety globally. As customs administrations increasingly rely on automated systems for risk management and completion of formalities, choices and uses of technology become more important.
Advanced customs systems streamline global trade
The discussion of modernised customs systems is timely given the World Customs Organization’s 2025 theme: ‘Customs delivering on its commitment to efficiency, security and prosperity’. Single-window systems create efficiency by providing a one-stop shop for addressing entry requirements, enabling faster clearance of goods. Risk management systems are grounded in well-considered security rules that allow customs to target limited resources. The combination of these systems results in prosperity by lowering costs for compliant traders and helping remove illicit actors from supply chains, creating more space for legitimate businesses.
The WCO’s Revised Kyoto Convention foresaw the need for electronic systems. It calls for the maximum use of information technology by customs to increase transparency, predictability and simplicity of customs procedures. Understanding that customs cannot undertake this alone, the RKC encourages its contracting parties to involve the trade community in developing procedures.
With the RKC as a foundation, the WCO developed initiatives that placed it at the forefront of trade facilitation. One critical step was the adoption of the WCO’s SAFE Framework of Standards to Secure and Facilitate Global Trade. The WCO created SAFE to protect supply chains from disruption by strengthening the relationships between and among customs, businesses and partner government agencies. The framework and its accompanying documents expressly recommend deploying technology to support inspection and cargo integrity. Although conceived as a response to terrorism, SAFE has evolved to develop standards that create more resilient supply chains better able to withstand trade disruptions no matter what the cause.
Data integrity a vital aspect of technology integration
Not only does the WCO create international standards for IT; it also develops tools to support implementation. In my first year as secretary general, the WCO released version 4.0 of the WCO Data Model, the universal language for cross-border data exchange. A single language improves systems interoperability, thus creating a favourable environment for creating single windows. The WCO assists its members throughout the single-window development process via workshops, e-learning and accreditation of in-country WCO Data Model experts. This last function is particularly important, as it builds sustainability into customs administrations’ efforts.
As the trading landscape changes to account for the substantial growth in e-commerce, technology must respond. The WCO, working with industry, postal operators and partner international organisations, created the E-commerce Package to guide members through the challenges of managing this significant aspect of trade. It remains an area warranting attention.
The temptation to rely on electronic systems is a risk. It is imperative that technology strengthen – not replace – other border enforcement approaches. And we must stay mindful that a state-of-the-art system is only as good as the information feeding it. Thus, measures to improve and maintain data integrity must accompany electronic systems use.
In this context, managing artificial intelligence in such a way that it is effective in the customs environment remains a challenge. It is a technology with vast potential, but how effectively it can contribute remains to be seen. Customs administrations that use AI and other IT systems must address policy, legal and administrative questions to enable effective implementation, considering among them information security, privacy and sustainability.
G7 leaders at Kananaskis can stress the importance of customs to the global economy, recognising its role as a key steward of international trade. Customs is not about only border security or economy – it is always at the intersection of both. The leaders of the G7 can amplify this message and mobilise efforts to help customs advance the various goals to which it can contribute.
Society cannot benefit from the power of technology if it is available to only a few. The integrity of trade requires it be used in as many places as possible. The WCO stands ready to partner with the G7 to help fulfil the promise of solid technology and sound process in international trade.
