Canada: The CBSA Is Piloting Blockchain Technology

Last Updated: August 7 2019
Article by Cyndee Todgham Cherniak

In October 2018, the Canada Border Services Agency ("CBSA") announced that "The CBSA Pilots Blockchain Technology". The CBSA informed the Canadian business/importing/exporting community that it is participating in a pilot project being led by IBM and Maersk to evaluate the capacity of TradeLens. The pilot project has been designed to allow the CBSA to determine what role, if any, the TradeLens platform could play in Canada's customs/border/export clearance processes.

Cision posted an announcement concerning the CBSA's pilot project. Cision indicates that on an average day, "the CBSA processes over 58,600 commercial releases, 14,400 trucks, 240,000 mail items, and 127,400 courier shipments, collecting more than $88,200,000 (CDN) in duty and taxes". These statistics demonstrate that a workable blockchain solution in the area of customs/border/export clearance clearance is important to Canada's trade future.

IBM also made an announcement concerning the CBSA's pilot project. IBM indicates that "the CBSA has the opportunity to investigate how to create a singular, trusted digital supply chain for all shipments entering Canada".

This is important because for blockchain to be successful in the context of international trade reporting, there must be acceptance and confidence by key customs agencies around the world. The CBSA must be confident that the information that it receives is accurate and that the information cannot be manipulated. If the CBSA becomes comfortable with blockchain technology, Canadian importers may benefit.

The time and cost of clearing goods for import or export adds a significant financial burden on Canadian businesses (and their international suppliers and customers) due to the numerous regulatory layers of authorizations to import or export goods, such as certificates of origin, phytosanitary certificates, health certificates, other certifications, import permits, export permits, licenses, approvals, etc.. The CBSA requires paperwork to risk access transactions and target their limited resources prior to the arrival of goods at the border (to be imported or exported). The CBSA determines whether the paperwork is complete, accurate and valid. If something is missing, the goods can be detained and the entry/exit of the goods can be delayed or halted. The CBSA determines whether the exporter or importer has complied with all applicable Canadian laws and regulations.

Blockchain technology has the potential to ensure integrity of data from inputs to finished goods to imports/exports throughout the supply chain. Blockchain technology can fundamentally change the way information about goods that cross borders is managed, transmitted, reviewed and approved. This could translate into reduced costs and risks to businesses. This could be a game changer for some businesses that operate internationally.

Because of the significant benefits to businesses, many want to know how soon can blockchain technology be implemented and work for businesses. Every one wants the cost and efficiency savings yesterday.

While the CBSA is developing and analyzing data, not much information has been revealed about the pilot project. We have been able to uncover the following information, which seems to suggest that widespread implementation is still years away.

TradeLens has a blog, which is a great resource to follow developments. On May 19, 2019, TradeLens posted an article entitled "Canadian pilot project featured in blockchain documentary". According to the blog article, the pilot project involves Livingston and and CN Rail. On April 3, 2019, Livingston issued a press release about its involvement in the pilot project and describes it's role as follows:

"Livingston will serve as the first customs broker to leverage the TradeLens platform for brokerage automation. Livingston's role in the pilot will be to enter and access information on shipments and streamline internal procedures without compromising accuracy or security. The CBSA is participating in the TradeLens pilot to determine what role the platform could play in its business processes."

"The pilot will serve to determine how Blockchain can optimize the speed and quality of customs and commercial data, while offering greater transparency into how cargo moves and streamlining the decision-making process for shipment release."

IBM is noted as saying:

"The most important aspect of the platform is the ecosystem – building trust to enable collaboration with one another through a model that benefits everyone. Livingston's participation in this initiative allows us to analyze the impact of blockchain on the logistics process by bringing in the role of customs administration, which involves the submission, examination and storage of reams of data on a daily basis..."

On April 29, 2019, the President of the CBSA, John Ossowski, (@johnossowski), tweeted as follows:

"Very pleased to report that the first transmissions for the #TradeLens pilot successfully went out last Friday. This is a big milestone for @CanBorder as it is our first time testing #blockchain technology."

We will continue to monitor blockchain developments in Canada.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

To print this article, all you need is to be registered on Mondaq.com.

Click to Login as an existing user or Register so you can print this article.

Authors
 
In association with
Related Topics
 
Related Articles
 
Related Video
Up-coming Events Search
Tools
Print
Font Size:
Translation
Channels
Mondaq on Twitter
 
Mondaq Free Registration
Gain access to Mondaq global archive of over 375,000 articles covering 200 countries with a personalised News Alert and automatic login on this device.
Mondaq News Alert (some suggested topics and region)
Select Topics
Registration (please scroll down to set your data preferences)

Mondaq Ltd requires you to register and provide information that personally identifies you, including your content preferences, for three primary purposes (full details of Mondaq’s use of your personal data can be found in our Privacy and Cookies Notice):

  • To allow you to personalize the Mondaq websites you are visiting to show content ("Content") relevant to your interests.
  • To enable features such as password reminder, news alerts, email a colleague, and linking from Mondaq (and its affiliate sites) to your website.
  • To produce demographic feedback for our content providers ("Contributors") who contribute Content for free for your use.

Mondaq hopes that our registered users will support us in maintaining our free to view business model by consenting to our use of your personal data as described below.

Mondaq has a "free to view" business model. Our services are paid for by Contributors in exchange for Mondaq providing them with access to information about who accesses their content. Once personal data is transferred to our Contributors they become a data controller of this personal data. They use it to measure the response that their articles are receiving, as a form of market research. They may also use it to provide Mondaq users with information about their products and services.

Details of each Contributor to which your personal data will be transferred is clearly stated within the Content that you access. For full details of how this Contributor will use your personal data, you should review the Contributor’s own Privacy Notice.

Please indicate your preference below:

Yes, I am happy to support Mondaq in maintaining its free to view business model by agreeing to allow Mondaq to share my personal data with Contributors whose Content I access
No, I do not want Mondaq to share my personal data with Contributors

Also please let us know whether you are happy to receive communications promoting products and services offered by Mondaq:

Yes, I am happy to received promotional communications from Mondaq
No, please do not send me promotional communications from Mondaq
Terms & Conditions

Mondaq.com (the Website) is owned and managed by Mondaq Ltd (Mondaq). Mondaq grants you a non-exclusive, revocable licence to access the Website and associated services, such as the Mondaq News Alerts (Services), subject to and in consideration of your compliance with the following terms and conditions of use (Terms). Your use of the Website and/or Services constitutes your agreement to the Terms. Mondaq may terminate your use of the Website and Services if you are in breach of these Terms or if Mondaq decides to terminate the licence granted hereunder for any reason whatsoever.

Use of www.mondaq.com

To Use Mondaq.com you must be: eighteen (18) years old or over; legally capable of entering into binding contracts; and not in any way prohibited by the applicable law to enter into these Terms in the jurisdiction which you are currently located.

You may use the Website as an unregistered user, however, you are required to register as a user if you wish to read the full text of the Content or to receive the Services.

You may not modify, publish, transmit, transfer or sell, reproduce, create derivative works from, distribute, perform, link, display, or in any way exploit any of the Content, in whole or in part, except as expressly permitted in these Terms or with the prior written consent of Mondaq. You may not use electronic or other means to extract details or information from the Content. Nor shall you extract information about users or Contributors in order to offer them any services or products.

In your use of the Website and/or Services you shall: comply with all applicable laws, regulations, directives and legislations which apply to your Use of the Website and/or Services in whatever country you are physically located including without limitation any and all consumer law, export control laws and regulations; provide to us true, correct and accurate information and promptly inform us in the event that any information that you have provided to us changes or becomes inaccurate; notify Mondaq immediately of any circumstances where you have reason to believe that any Intellectual Property Rights or any other rights of any third party may have been infringed; co-operate with reasonable security or other checks or requests for information made by Mondaq from time to time; and at all times be fully liable for the breach of any of these Terms by a third party using your login details to access the Website and/or Services

however, you shall not: do anything likely to impair, interfere with or damage or cause harm or distress to any persons, or the network; do anything that will infringe any Intellectual Property Rights or other rights of Mondaq or any third party; or use the Website, Services and/or Content otherwise than in accordance with these Terms; use any trade marks or service marks of Mondaq or the Contributors, or do anything which may be seen to take unfair advantage of the reputation and goodwill of Mondaq or the Contributors, or the Website, Services and/or Content.

Mondaq reserves the right, in its sole discretion, to take any action that it deems necessary and appropriate in the event it considers that there is a breach or threatened breach of the Terms.

Mondaq’s Rights and Obligations

Unless otherwise expressly set out to the contrary, nothing in these Terms shall serve to transfer from Mondaq to you, any Intellectual Property Rights owned by and/or licensed to Mondaq and all rights, title and interest in and to such Intellectual Property Rights will remain exclusively with Mondaq and/or its licensors.

Mondaq shall use its reasonable endeavours to make the Website and Services available to you at all times, but we cannot guarantee an uninterrupted and fault free service.

Mondaq reserves the right to make changes to the services and/or the Website or part thereof, from time to time, and we may add, remove, modify and/or vary any elements of features and functionalities of the Website or the services.

Mondaq also reserves the right from time to time to monitor your Use of the Website and/or services.

Disclaimer

The Content is general information only. It is not intended to constitute legal advice or seek to be the complete and comprehensive statement of the law, nor is it intended to address your specific requirements or provide advice on which reliance should be placed. Mondaq and/or its Contributors and other suppliers make no representations about the suitability of the information contained in the Content for any purpose. All Content provided "as is" without warranty of any kind. Mondaq and/or its Contributors and other suppliers hereby exclude and disclaim all representations, warranties or guarantees with regard to the Content, including all implied warranties and conditions of merchantability, fitness for a particular purpose, title and non-infringement. To the maximum extent permitted by law, Mondaq expressly excludes all representations, warranties, obligations, and liabilities arising out of or in connection with all Content. In no event shall Mondaq and/or its respective suppliers be liable for any special, indirect or consequential damages or any damages whatsoever resulting from loss of use, data or profits, whether in an action of contract, negligence or other tortious action, arising out of or in connection with the use of the Content or performance of Mondaq’s Services.

General

Mondaq may alter or amend these Terms by amending them on the Website. By continuing to Use the Services and/or the Website after such amendment, you will be deemed to have accepted any amendment to these Terms.

These Terms shall be governed by and construed in accordance with the laws of England and Wales and you irrevocably submit to the exclusive jurisdiction of the courts of England and Wales to settle any dispute which may arise out of or in connection with these Terms. If you live outside the United Kingdom, English law shall apply only to the extent that English law shall not deprive you of any legal protection accorded in accordance with the law of the place where you are habitually resident ("Local Law"). In the event English law deprives you of any legal protection which is accorded to you under Local Law, then these terms shall be governed by Local Law and any dispute or claim arising out of or in connection with these Terms shall be subject to the non-exclusive jurisdiction of the courts where you are habitually resident.

You may print and keep a copy of these Terms, which form the entire agreement between you and Mondaq and supersede any other communications or advertising in respect of the Service and/or the Website.

No delay in exercising or non-exercise by you and/or Mondaq of any of its rights under or in connection with these Terms shall operate as a waiver or release of each of your or Mondaq’s right. Rather, any such waiver or release must be specifically granted in writing signed by the party granting it.

If any part of these Terms is held unenforceable, that part shall be enforced to the maximum extent permissible so as to give effect to the intent of the parties, and the Terms shall continue in full force and effect.

Mondaq shall not incur any liability to you on account of any loss or damage resulting from any delay or failure to perform all or any part of these Terms if such delay or failure is caused, in whole or in part, by events, occurrences, or causes beyond the control of Mondaq. Such events, occurrences or causes will include, without limitation, acts of God, strikes, lockouts, server and network failure, riots, acts of war, earthquakes, fire and explosions.

By clicking Register you state you have read and agree to our Terms and Conditions