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Utilizing Blockchain Technology in Drawback for Sustainable Supply Chain Management

Utilizing Blockchain Technology in Drawback for Sustainable Supply Chain Management

Well before the implementation of the Trade Facilitation and Trade Enforcement Act of 2015, also known as TFTEA, Charter Brokerage has earned the reputation for establishing efficient duty drawback programsto maximize refunds. Utilizing the latest digital tools in combination with time-tested experience and expertise, Charter has been on the forefront of technological advances in the industry. One of latest developments has been the utilization of blockchain for effective supply chain management in duty drawback. However, many companies have used the idea of blockchainas a buzz word for enticing clients with unimpressive results. What are the real applications of blockchain technologyin the industry? How can Charter help you gain the most benefit via a blockchain drawback solution?

What is Blockchain?

 While many are familiar with the term ‘blockchain’ in the context of digital currency, such as Bitcoin, it can be applied to a variety of effective applications. Simply put, blockchainis a type of network foundation, which allows digital information to be distributed rather than copied. How is this different from other internets? It provides a more secure and reliable method of exchanging data, offering maximum transparency and quality assurance.

How Can Blockchain TechnologyBe Used to Maximize Drawback Refunds?

Managing duty drawback on blockchaincan be an effective supply chain strategy. When used to track the movement of goods, there are constant, automated records of origin, quantity, ownership transfer, payments and transactions. Not only does this ensure accuracy and traceability, but it is also cost-effective as it removes the risk of human error or tampering. Records are verified each time data changes hands, creating a traceable audit trailin which irregularities can be located at their source. In short, blockchain solutions for duty drawbackprovide a secure and reliable way of recording transactions and exchanging data, which make it excellent for verifying the validity of information and traceability of its sources.

What Are the Limitations of Blockchain Technology in Supply Chain Management?

When blockchainis improperly applied or used in the wrong circumstances, it can be an expensive and ineffective solution yielding few results. While one central point of data is effective in small-scale contexts or for individual companies, there are many carriers in a typical supply chain. However, the logistics make this nearly impossible for application within an entire system or industry. While a broker may own all the data going in and out, more testing and proof of concepts are needed before there can be certainty that this method can work as a large-scale solution.

How Does Charter Brokerage Use Blockchain Technology in Supply Chain Managementto Benefit You?

While many brokers have recently overused the idea of managing duty drawback via blockchain, Charter Brokerage has been utilizing the mechanics behind the technology effectively and efficiently in the petroleum industry for years. At Charter Brokerage, we do everything possible to protect our clients from any penalties and guarantee our work to ensure your cargo enters the US or Canada timely and compliantly and gain the maximum drawback recovery.

We understand the commodity physicalstrading space and containerized logistics and can advise you in terms of importation and exportation. To learn more about our services or to meet the high quality brokers personally committed to working in your best interests, please call Charter Brokerage today.

Sources:
“Blockchain Solutions for Duty Drawback”, Retrieved from:
https://ustr.gov/sites/default/files/enforcement/301Investigations/List%201.pdf https://ustr.gov/sites/default/files/enforcement/301Investigations/List%202.pdf https://ustr.gov/sites/default/files/files/Press/Releases/301FRN.pdf