International trade is the life blood of the global economy. The integrity of international trade depends on parties involved to comply with preexisting international trade regulations. In some cases, these rules are violated by bad actors or a simple failure to maintain proper oversight. The following are four technologies used in the area of international trade regulations that help to combat these and other problems.
With the advent of a decentralized ledger technology like blockchain, it will become relatively easy to ensure the integrity of international trade. Blockchain requires a majority consensus of agreement across all decentralized ledger holders before any kind of trade action or records alterations can transpire. This means the majority of entities involved in international trade must agree that everything is on the level before any trade actions will be able to proceed.
It can be expected that this system of doing business around the globe will only become stricter and more tightly controlled as blockchain technology becomes more involved in the process; thus, ensuring a greater level of awareness and oversight into such matters and in the smart contracts behind trade transactions.
Digitization of Trade Documents
In support of international trade regulations, the digitization of trade documents is a major improvement over the use of printed hard copies. This means that information on any trade item or shipping matter can be obtained rapidly in digital form. This in turn speeds up any legal action, tracking or monitoring of all related international trade-based transactions. This also makes it easier for businesses to look back over previous shipments for tax information and shipping volume trends.
OCR, QR and RFID Tracking
OCR has been a useful technology in helping to maintain compliance with international trade regulations by making shipping containers easy to identify and inventory. RFID and QR codes also help in the tracking of specific shipments. The end result is that it is easier to ensure that what is being shipped around the globe is allowed to be passed through specific ports of entry. This does more than help with trade regulation, however. It also makes it easier for companies to keep track of shipments as they travel and better schedule around more accurate arrival time estimates.
Governments around the world keep lists of companies, organizations and individuals whose status is restricted for being allowed to have items exported to them from third party companies or individuals. In fact, it is illegal for someone to send items to those on these lists. This is where name matching is critical to avoid unwittingly shipping packages to such entities and accidentally being found in violation of international trade regulations.
As more technologies are used to help with international trade regulation compliance, this will inevitably create more accountability in this area of the global economy. This will also make it more difficult for bad actors to commit international crimes. It will also help to ensure transparency in all international trade transactions which is good for all nations involved where regulations are being strictly upheld.
Meghan Belnap / Blogger, Researcher and Freelance Writer
Meghan Belnap is a freelance writer who enjoys spending time with her family. She loves being in the outdoors and exploring new opportunities whenever they arise. Meghan finds happiness in researching new topics that help to expand her horizons. You can often find her buried in a good book or out looking for an adventure. You can connect with her on Facebook right here and Twitter right here.