Azerbaijan Government Inks a Deal with IBM to Use Blockchain Technology for Customs Processes


Azerbaijan’s State Customs Committee and IBM are set to sign a new agreement that will see blockchain technology being used in customs processes. The new deal signifies the developing cordial relationship between IBM and Azerbaijan government.

In October last year, Azerbaijan’s central bank inked an agreement with IBM which will effectively mean the bank can use blockchain technology in different areas for a period of five years. The new says that IBM will deploy its blockchain technology targeting cargo transportation.

The deal was made public by State Customs Committee chair, Safar Mehdiyev, during a press meet that was held to update the country about the ongoing IT/TI Conference and Exhibition of the World Customs Organization (WCO) that is being held in Baku, Azerbaijan.

Mehdiyev told the reporters that IBM blockchain technologies will be used to manage cargo transportation in the country and will be implemented before the end of the year. He explained that blockchain technology will permit sending of information about container shipments to the database. He explained:

“It will be possible to obtain the necessary information from the database online, without outside interference,” Mehdiyev stressed. “It will be useful for both entrepreneurs and customs authorities, as it will improve the quality of customs services provided.”

Blockchain For Seamless Custom Procedures

Majority of governments across the world are acknowledging the advantages of blockchain technology in customs processes. One of the governments implementing blockchain technology in its customs is the US which unveiled a trial scheme that is custom built on blockchain technology in August 2018.

Meanwhile, Azerbaijan looks forward in advancing blockchain technology outside its borders with an immediate target on its neighbors. Mehdiyev added that his committee was working on agreements to boost bilateral cooperation that will allow the use of the technology with different countries. The chair said that Moldova, Ukraine, and Georgia are under consideration presently.

“In this direction, we are implementing a project with Ukraine with the support of Georgia and Moldova,”

Cointelegraph quotes the chair.

Azerbaijan is proving to be friendly to blockchain based technologies with key government departments embracing the technology. Notably, Justice Ministry of Azerbaijan has also conveyed its interest in using distributed ledger technology to carrying out its day-to-day proceedings. It will be interesting to see whether other key governmental departments will embrace the technology in efforts to offer seamless services to the public.

Do you think adoption of blockchain technology by government agencies will improve service delivery? Share your views with us in the comments section.

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Author: Joseph Kibe

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