Enhancing International Trade Security: Real-Time Risk Assessment in Brazilian Customs with Blockchain Technology

This study introduces an innovative approach by integrating blockchain technology with risk analysis methods for international trade. The practical application and tangible improvements observed in a real case study highlight the originality and value of this approach, offering a robust framework for future research and practical implementation. The security of exports presents a challenge for customs authorities, requiring the analysis of vast volumes of data from diverse sources and stakeholders. Blockchain technology offers a viable solution by facilitating the sharing of reliable and secure data among participants in the international supply chain. This study proposes a distributed risk analysis method based on Blockchain to detect and prevent fraud and irregularities in Brazilian exports. The technique aims to enhance efficiency and protection in customs clearance, providing real-time risk analysis feedback at various supply chain stages. The method includes four stages: data collection, risk classification, validation, and feedback. It employs a Model Form for Insertion into the Blockchain, the DBSCAN algorithm to identify out-of-pattern transactions (outliers) at the manufacturing stage, and a Monte Carlo simulation to analyze the volume and specific products exported from Rio Grande do Sul. We applied this method in a case study of beef exports from Brazil. Using this method led to significant improvements in processing times, operational costs, transparency, and security in the supply chain. The blockchain-based approach identified fraudulent activities, such as value tampering and undeclared goods, enhancing compliance and trust among trade partners. Implementing this method can significantly reduce operational costs and processing times in international trade while increasing security and transparency. This approach benefits customs authorities and private operators, promoting a more reliable and efficient commercial environment. Adopting blockchain technology in international trade can reduce fraudulent and illicit practices, promoting greater fairness and equity in commercial transactions. Increased transparency strengthens trust among various actors in the supply chain, fostering a sense of social responsibility.