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Open Customs Blockchain

Sector: Tertiary sector · Industry: Warehousing and logistics services · Organisation: DHL, Fraunhofer IML · Maturity level: Pilot

The Open Customs Blockchain is a European open-source initiative for digitalizing customs processing that has been under development since 2022. The project includes two main components: BORDER for supply chain focus and GPID for customs focus, aimed at reducing data discontinuities and manual processes. The system is currently in the pilot phase and is funded with 7.7 million euros by the state of North Rhine-Westphalia.

Documentation status

Description

The Open Logistics Foundation (Dortmund, founded in 2021) is a public foundation for open logistics infrastructure. Founding partners include DB Schenker, Lufthansa Cargo, Kühne+Nagel and others. Open-Customs-Blockchain is a concept for the digital acceleration of customs clearances through blockchain-secured document release.

Customs clearances are one of the last heavily paper-based processes in international trade: certificates of origin, commercial invoices, packing lists, import declarations are exchanged between exporter, freight forwarder, customs declarant and customs authority — often by email or fax. Errors and missing documents lead to delays that cause storage costs and contractual penalties. Blockchain solves this structurally: all customs documents are digitally anchored on the blockchain at dispatch; customs authorities receive authorised read access and can pre-clear shipments before the ship arrives. The EU Customs Reform (2023) aims for fully digital customs by 2028. The Open Logistics Foundation develops open-source standards to ensure interoperability of different blockchain systems. Practical experience: Singapore (TradeTrust platform) and the Netherlands (Rotterdam Port Blockchain) already operate productive customs blockchain systems.

Perspectives

B2B — organisations perspective

Exporters and logistics service providers can drastically shorten clearance times through blockchain-based customs documents: customs authorities receive immediate digital access to all relevant documents — no delays due to missing papers.

B2C — consumers perspective

End customers indirectly benefit from faster delivery times thanks to accelerated customs clearance and can better trace the origin of their products through improved transparency. The reduced susceptibility to fraud increases product authenticity and thus consumer trust.

Employees perspective

Employees in customs and logistics departments can free themselves from time-consuming manual document checks and focus on more value-adding activities. The automated verification processes of the blockchain significantly reduce repetitive administrative tasks.

Benefits

General

B2B — organisations

B2C — consumers

Employees

Challenges

General

B2B — organisations

Employees

Technology foundation

The project uses a blockchain-based solution for forgery-proof storage and transmission of customs documents and supply chain data. Blockchain technology enables all relevant trade documents to be stored immutably while granting controlled access to various parties such as customs authorities, logistics companies and traders.

Implementation examples

Open Customs Blockchain pilot project

The consortium wanted to solve the fundamental problems of paper-based customs processing, including the lack of a shared data basis, extensive manual effort, and fraud risks. The blockchain solution was intended to enable consistent data exchange and increase trust in data accuracy.

DHL and eight other partner companies are jointly developing a blockchain-based customs processing platform with Fraunhofer IML. The pilot project includes the development of the BORDER and GPID systems.

The consortium of nine member companies, coordinated by the Open Logistics Foundation, has been developing a comprehensive blockchain solution for customs processing since 2022. The BORDER system was released as an open-source solution in December 2022, while the Goods Passport ID was submitted as a pilot project to the European Commission. The project aims to eliminate data discontinuities and manual processes in international trade processing and was selected as one of the first 20 cohorts for the EBSI sandbox of the European Commission.

The project addresses data discontinuities between supply chain partners, reduces manual effort through automation, and eliminates fraud risks through immutable blockchain documentation. The solution creates a shared data basis for all parties involved in international trade processing.

Tags

Customs clearance, Supply chain, Digitalisation, Document management, Fraud protection

Sources

  1. Open Logistics Foundation: Neues Pilotprojekt für sichere Zollprozesse (Goods Passport ID)
  2. DHL Freight: Blockchain in der Logistik – Beteiligung an der Working Group Open Customs Blockchain
  3. Fraunhofer IML: Open Customs Blockchain – The missing piece to unlocking the broad application of DLT for Customs?
  4. LOGISTIK HEUTE: Open Logistics Foundation startet Pilotprojekt für sichere Zollprozesse