The World Customs Organization (WCO) published a major report into the rising impact of Smart Security Devices (SSDs) on logistics and Customs procedures.
The Report explores the growing role of connected devices, such as smart locks, track-and-trace sensors, and smart containers, in modernising the supervision of cross-border cargo.
Although new technologies contribute to trade facilitation, supply chain security and integrity, the WCO’s Report identifies several critical challenges. These include data security, legal frameworks, and interoperability, all of which must be addressed through international cooperation to fully realize the benefits of SSDs.
SSDs – Securing cargo and strengthening the global supply chain
For Customs authorities, SSDs offer tools to strengthen cargo supervision, prioritise inspections based on real-time risk analysis, and facilitate the legitimate movement of goods, while logistics providers and shippers can benefit from improved supply chain transparency, better cargo condition monitoring, and more reliable transit times.
WCO Secretary General, Ian Saunders, said: “With increasing trade volumes, Customs administrations must be prepared to clear goods more efficiently without compromising on their commitment to protect society or disrupting international supply chains. The adoption of Smart Security Devices by Customs administrations represents a significant step forward in leveraging digital solutions to enhance the security of global supply chains – by offering a comprehensive approach to monitoring and securing cargo, providing real-time data that help prevent illicit activities, while optimizing Customs procedures.”
WCO’s Key Findings – Promising innovation but a technical and regulatory challenge
Based on an in-depth analysis of current standards, operational models, and case studies from Customs administrations and the private sector, the WCO report provides practical insights into the opportunities and challenges of adopting SSDs.
- Real-time visibility enhances security but demands power and precision
Active SSDs provide real-time tracking through satellite positioning and encrypted data transmission, enabling immediate incident response and enhanced cargo security and trade integrity. However, their reliance on internal power sources introduces challenges around battery life, energy efficiency, and performance under harsh environmental conditions.
- Universal tamper detection reinforces trust across device types
All SSDs, whether passive, semi-active, or active, incorporate mechanical seals and data chips that become inoperable if tampered with. This built-in tamper evidence strengthens supply chain integrity but varies in operational complexity depending on the device type.
- RFID as the backbone of scalable smart security
Radio-Frequency Identification (RFID) technology underpins all SSD variants, enabling automated identification and data exchange. Its low cost and flexibility support scalability, although inconsistent communication standards and varying frequency bands across regions create interoperability barriers to seamless use.
- Interoperability and standardisation are critical, but lacking
The absence of universal protocols for encryption, frequency usage, and communication hinders seamless monitoring of cross-border operations. SSDs must navigate regulatory fragmentation, making widespread coverage difficult without coordinated global standards.
- Advanced features bring benefits and complexity
High-end SSDs offer secure communication, live tracking, and two-way network control using robust encryption algorithms. While these features deliver powerful advantages, they also demand higher investment, regulatory clearance, and ongoing technical maintenance, making them less accessible to smaller operators.
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