Azerbaijani Customs on prospects of using blockchain technology

Azerbaijani Customs on prospects of using blockchain technology
Azerbaijan’s State Customs Committee regularly studies various technologies and innovative methods of solution and applies them in the processes of customs control and customs declaration in the format of cooperation with other state bodies and the business community as part of various state programs, the Committee’s Chairman Aydin Aliyev said in an exclusive interview with Trend.

It is necessary to take into account that the application of any new technologies in any sphere of management, including customs, should not proceed in the form of experiments, but in the format of specific innovative projects as part of the system approach, he noted.

Aliyev said that the use of any new technologies in the customs system should be aimed at specific projects and associated with the initiatives that have been implemented in recent years.

Commenting on the blockchain technology and its possible use in the customs bodies, Aliyev noted that the studies conducted by the State Customs Committee of Azerbaijan show that the use of this technology should be tested in the management of trade and equipment, including with banking operations related to trade and in the logistics field.

"A similar example is the various joint projects implemented in this area by world’s biggest logistics companies – Maersk, and IBM. Moreover, we know that the use of blockchain technology is of great interest for the customs authorities of the United States, UK, Singapore, Korea and Japan. It should be noted that the blockchain technology promises a number of advantages – optimization of expenditures and resources, as well as transparency, which is achieved through distributed databases and cryptographic solutions,” added the chairman.

Aliyev said that in April 2017, the problems of use of blockchain technology were touched upon at a session of the Permanent Technical Committee of the World Customs Organization, where great prospects for the use of this technology in the areas of electronic business management, risk management, information turnover between customs, customs audit, as well as the formation of a culture of law-abiding.

"In recent years, the Committee has also taken a number of serious steps in this direction. The Committee actively studies innovations and various international experience in the field of customs activities, holds various international conferences, with the participation of Nobel laureates. The next similar conference will be held in the city of Mingachevir in July 2018,” noted the chairman.

The event will be titled "Automation of global trade: Analysis of "Internet of things” and "large amounts of data” when making decisions in the customs service, added Aliyev.