The latest meeting of the World Customs Organization's Permanent Technical Committee (PTC) served as a brainstorming session on optimizing international trade processes through cutting-edge technologies. Beyond reviewing implementation progress of the Trade Facilitation Agreement (TFA), discussions focused on integrated supply chain management (ISCM), data analytics, blockchain, and other forward-looking areas to provide strategic guidance for customs modernization.
Trade Facilitation: Implementation and Continuous Improvement
Chaired by Mr. Rob van Kuik of the Netherlands, the session opened with remarks from Ms. Ana Hinojosa, Director of Compliance and Facilitation at WCO, who noted with appreciation the increased participation of female delegates. Ms. Hinojosa emphasized that since the WTO's TFA came into force on February 22, 2017, members have been working toward coordinated implementation. While the TFA Working Group plays a central role, numerous PTC agenda items—including transit, inward/outward processing, customs brokers, and single windows—remain closely tied to the agreement.
Beyond TFA: Strategic Vision for the Future
Ms. Hinojosa stressed that PTC's mandate extends well beyond TFA implementation. Following a council-approved decision years ago, the committee must adopt a more strategic orientation that considers both technical matters and future trends. The secretariat and chair accordingly developed an agenda reflecting these priorities.
Integrated Supply Chain Management (ISCM) exemplifies this forward-thinking approach. Though ISCM guidelines were published in 2004, the concept remains remarkably prescient. PTC will revisit this framework to ensure relevance in today's trade environment and help members operationalize this critical approach to supply chain security and efficiency.
Data Analytics: The Future of Customs Administration
With data analytics serving as WCO's 2017 thematic focus, PTC dedicated significant attention to examining data collection methodologies, IT solutions, and varying national approaches to processing large datasets. Breakout sessions allowed members to share best practices in leveraging data to enhance customs operations.
Regarding PTC's "Future Customs" agenda, Ms. Hinojosa highlighted the importance of reviewing past work while providing direction for emerging priorities—from disruptive technologies to strategic forecasting. The committee also reviewed findings from global value chain research and approved updated guidelines for inward/outward processing procedures.
Blockchain Innovation: Transformative Potential for Customs
A special presentation by IBM explored blockchain's operational mechanics and potential applications for customs and border agencies. Discussions focused on how this emerging technology could revolutionize transaction monitoring, supply chain traceability, and trade documentation verification.
E-Commerce: New Challenges and Opportunities
The third day focused exclusively on e-commerce's growing impact on customs operations. With exponential growth in cross-border parcels, members examined regulatory challenges including small package clearance, data security, and risk management. Four working groups collaborated to develop tools supporting sustainable e-commerce growth while maintaining appropriate oversight.
Customs-Tax Cooperation: Enhancing Synergies
Building on 2016 policy committee directives, members analyzed feedback regarding joint databases, coordinated risk management approaches, and post-clearance audits. Updated WCO tools will facilitate enhanced customs-tax cooperation at national levels, with particular focus on information exchange mechanisms.
Integrated Supply Chain Management: Modernizing Trade Security
The ISCM discussion highlighted how consumer demands for supply chain transparency—particularly for bio-products—are driving commercial interest in secured logistics networks. Panelists including customs officials from New Zealand and China, along with logistics experts, emphasized:
- The need to align ISCM with SAFE Framework standards
- Practical implementation guidance incorporating pilot program lessons
- Inclusion of recent project case studies
Notable innovations included China's Smart and Secure Trade Lanes (SSTL) project utilizing pre-arrival data, non-intrusive inspection equipment, and Authorized Economic Operator (AEO) programs. The potential of IoT technologies—RFID tags, GPS tracking, smart gates, and e-seals—received particular attention.
Debate emerged regarding the Unique Consignment Reference (UCR) system, with some members advocating for simplified alternatives like Customs Reference Numbers (CRN) or commercial tracking identifiers. Developing countries emphasized the need for tailored implementation support.
Terminology Standardization
The session concluded with review of the International Customs Glossary to ensure terminological consistency across member administrations.
Through robust dialogue on these interconnected issues, PTC members advanced collaborative solutions for 21st century trade facilitation while balancing security imperatives. The adopted resolutions will guide WCO's technical committees in developing practical tools for modern customs administration.