Trade In The New Digital World – Technology – United States – Mondaq News Alerts

11 March 2021

Braumiller Law Group, PLLC

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Introduction: This article describes howdigitization of information and development of new tools andequipment is expanding to improve efficiency, productivity, safetyand almost every aspect of the movement of goods. The focusis on how international organizations, national governments andupgraded trade agreements are improving the ability to adoptinnovative technologies.

UN Suggestions for Adapting Global Value Chains toDigitization: The United Nations Centre for TradeFacilitation and Electronic Business (UN/CEFACT) proposed theestablishment of an Advisory Group on Advanced Technologies inTrade and Logistics (AGAT), in order to advise and support theUNECE secretariat and UN/CEFACT on advanced technologies in tradefacilitation and electronic business. The technologies inquestion include:

Recognition of Digitization inAgreements: The WTO legal framework lacks specificprovisions in some areas, particularly on customs procedures anddocumentation, and on transparency. The spectacular increase in theamount of goods traded worldwide in the last few years and theadvances in technology and the computerization of businesstransactions added a sense of urgency to the need to make therules more uniform, user-friendly and efficient.

Since at least 2016, the World Customs Organization is activelypromoting the adoption of digital tools. The WCO vision for thefuture includes: paperless customs clearance as the norm,supporting single window approaches to customs processing andworking with countries to develop advanced approaches in areas suchas improved compliance with sanitary and phytosanitaryrequirements.

The US-Mexico-Canada Agreement (USMCA) includes provisions ondigital trade that cover digital information and cross-bordertransfers, but there is little in the agreement that fosters acommitment to innovative digital tools.

Some of the issues with digital trade are addressed in other newregional agreements such as the Pacific Regional ComprehensiveEconomic Partnership (RCEP), the CPTPP and the African ContinentalFree Trade Agreement (AfCFTA), for example., However, theseagreements also lack commitments to innovation and use of digitaltools to upgrade the supply chain infrastructure.

Single Window Initiatives: A singlewindow is defined as a facility that allows parties involved intrade and transport to lodge standardized information and documentswith a single-entry point to fulfill all import, export, andtransit related-related regulatory requirements. Requirementsvary by country for single window filing, bank transactiondocuments, commercial docs, tracking ships and containers andspecific products, traceability, moving through multiple customsenvironments (FTZ, bonded warehouse, enter and re-export, drawback,rulings in multiple jurisdictions) and other importanttransactional steps.

The process of building out single window infrastructureis not widely adopted in many countries and there is littlemovement to integrate them globally. They are basicallycompatible at the 6-digit level in the Harmonized System, but themovement to add compatibility across more information andregulations will take years, if not decades, as each countrydecides for itself how to approach this fundamental customs processand what is included.

ITC Digital Trade Studies: Technologies such ascloud computingthe delivery of software and other computerservices via the internetare transforming the provision ofinformation and communications technology (ICT) services.Internet technologies transformed how most goods and services inthe economy are produced by helping firms lower their costs andoperate more efficiently while giving consumers improved access toa wider range of products and services. Digital trade enabledSMEs to overcome many of the impediments associated with exportingthat traditionally only larger firms could manage.

In addition, operating online allows worldwide consumerdemand to fuel demand for SME exports of products and services. Theinternet enables firms to improve logistics management, managesupply chains more efficiently, introduce more efficient businesspractices, increase market intelligence, gain greater access tomore markets and customers and develop additional channels forservice delivery.

Food Safety & Technology Trends In 2021:from https://www.sourcetrace.com/blog/food-safety-technology-trends-in-2021/

The movement to improve international trade mechanisms andsystems with digital tools has clearly become a powerful force forinnovation. International organizations need to work todevelop coherence and compatibility among the various tools andbring nations together to truly use the power of these newapproaches. There are many benefits to be derived fromdigitization, including enhanced traceability, improved records,and many others that are being built by innovative companiesglobally.

The content of this article is intended to provide a generalguide to the subject matter. Specialist advice should be soughtabout your specific circumstances.

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Trade In The New Digital World - Technology - United States - Mondaq News Alerts