6th August 2022

Digital Transformation in the Public Sector Week – Border Control

Guest blog written by Edward C. Cole, CEO, Founder at Katlas Technology as part of the Digital Transformation in the Public Sector Week #techUKDigitalPS

Source acknowledgement- The United Nations Centre for Trade Facilitation and Electronic Business (UN/CEFACT)

Governments globally aim for responsible resource use, reflected in open-to-interpretation regulations with hefty penalties that increase trade costs. Key issues:

  1. Measurement: Fulfillment metrics don’t account for carbon footprints or human rights (UFLPA).
  2. Verification: Lacking computer-readable rules hinders automation, relying on paper.
  3. Compliance Reporting & Audit: Export license screening, monitoring, and change management aren’t connected, missing identity and consent.
  4. Exclusion / Cost: SMEs face barriers due to limited services and expertise.

The UK government aims to reduce trade costs with Commonwealth partners post-EU membership. Reducing inefficiencies, ensuring environmental responsibility, and upholding human rights are priorities.

Cost of Trade: Nearly doubles export prices, with a third linked to non-tariff border expenses.

Trade Finance: A $1.7 trillion trade finance gap, mainly impacting SMEs, hinders cross-border trade.

Counterfeit Goods: Illicit trade is at least $600Bn (3% of world trade), causing market losses and reputational damage.

Environment: Growing consumer demand for sustainable products amid 25 billion tons of carbon emissions, 25 million in forced labor, and 400 million tons of hazardous waste yearly.

Border Control: Inspecting just 1% of 1 billion sea containers and a fraction of 100 billion parcel shipments poses challenges.

Cost of trade breakdown: About half is distribution costs, 20% is transport, and 30% relates to border barriers like tariffs, compliance, currency, language, information, and security.

SME Impact: SMEs contribute significantly to trade but need better access to finance.

Solutions: A common system for sharing verifiable credentials across international trade with three pillars on Web 3.0:

  1. Zero-Trust: Separating issuers from verifiers without human intervention.
  2. Interoperability: Open attestation without walled gardens.
  3. Secure Network: A shared public infrastructure for safety.

Leadership (Government): Collaboration across sectors, led by the public sector, is needed for efficient supply chains. Blockchain DLT on Web 3.0 promises enterprise efficiency.

Metaverse as Service Delivery: Trustless systems with decentralized authority can deliver services without central control.

Web 3.0 Vision: A blockchain-secure DLT with dispersed authority allows intermediary-free services, micro-payments, and shared information with permissions. Multiple digital personas under one entity with smartphone access can call AI for behavioral change and health.

Government Future: Governments won’t store data but access entity and individual wallets for remote, respectful reporting.

Metaverse Benefits: Monitoring regulations, predicting policy outcomes, and achieving a positive ROI become feasible.

Back to blog

Related Posts

The challenge for KATLASNET was turning a philosophical challenge in the way humans replicate and replace non-digital activities to a digital next generation society.

Here we discuss societal impact of blockchain more broadly. Please do contribute to the discussion...

See all Posts

Let's discuss your project

Wondering if KATLAS is right for your business? Looking for a demo? Just curious? We're super excited to hear your ideas and help you imagine a new future for your enterprise.