Australia and Singapore to test blockchain to facilitate trade between countries

Australia and Singapore to test blockchain to facilitate trade between countries

The Australian Border Force plans to simplify cross-border trade with Singapore using blockchain. Testing of the system was launched this week.

According to a statement from the Australian Border Service, in accordance with the Agreement on the Development of the Digital Economy between Australia and Singapore, testing of a blockchain-based application was launched this week to simplify the exchange of trade documents.

The testing, which is being conducted in collaboration with the Singapore Customs Authority and the Information Technology Development Authority (IMDA), aims to reduce administrative costs and improve the efficiency of trade between the countries.

In particular, the capabilities of the digital verification platform will be tested in the intergovernmental register of the Australian Border Service and on the TradeTrust IMDA platform for the exchange of electronic documents, including certificates of origin of products.

“This initiative will include paper – free trade operations and secure digital exchange of trade information to advance the future architecture and design of the Australian Single window trading system,” Border Force Commissioner Michael Outram said.

Feedback on the testing will be provided by businesses and regulators, including the Australian Chamber of Commerce and Industry, the Australian Industry Group and Singapore’s ANZ Bank. According to the National Roadmap for the Development of blockchain, the Border Guard Service will provide a plan to launch the system in 2021.

The Digital Economy Development Agreement between Australia and Singapore, signed by the countries in August, sets out rules to reduce barriers to digital trade, as well as create an infrastructure in which businesses and consumers can participate in the digitalization of the economies of both countries.

Recall that recently the Australian Stock Exchange (ASX) postponed the launch of a clearing and settlement system on the blockchain until April 2023 due to higher requirements for the platform than previously expected.