South Korea will complete the blockchain-based customs clearance system next month, thus shortening the time for imported foreign products to pass through the customs clearance.
The Ministry of Science and ICT and the Korea Customs Service said Monday it would complete the pilot project. Once the project is in operation, e-commerce buyers could have their foreign products delivered quicker than now.
The blockchain-based customs clearance system is one of the six pilot projects the South Korean government picked last June to upgrade public services through blockchain technology.
Currently, logistics companies and e-commerce traders must submit 28 types of documents to the customs office for imports. This process is time-consuming, labor intensive and open to bogus reporting. This method also frustrated online consumers who must wait for a longer time than they want. In addition, consumers could not trace the delivery status of their products online.
However, the blockchain technology has removed all these inconveniences as the customs office shares the 28 types of customs clearance information with logistics and e-commerce traders through the blockchain-based platform on a real-time basis. The automated customs clearance might cut the delivery time for nearly 12 hours.
The blockchain-based platform also enabled Korea Customs Service to prevent tax evasion and the influx of illegal products. Buyers can monitor where their products are now on an online portal.
The Korea Customs Service has already signed an agreement with CJ Korea Express and e-commerce traders for the operation of the system.
