Smart Security Devices in Customs Operations: Opportunities and Challenges in the Context of Trade Globalization
On June 10, 2025, the World Customs Organization (WCO) released a detailed report highlighting technological advancements in Smart Security Devices (SSDs) and their impact on global supply chains. The report outlines how these devices — such as smart locks, tracking sensors, and smart containers — are revolutionizing customs control and risk management, while also pointing out technical and regulatory challenges that hinder their full potential.
Smart Security Devices: Definition and Classification
Smart Security Devices are connected devices, such as smart locks, sensors, trackers, and smart containers, that modernize cross-border cargo monitoring, thereby facilitating trade and enhancing supply chain safety and security.
SSDs are classified into three main types based on their technological complexity and functionalities:
Passive SSDs
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Features: Rely on Radio-Frequency Identification (RFID) technology and do not require an internal power source.
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Advantages:
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Low cost.
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Minimal maintenance.
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Disadvantages:
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Limited tracking capabilities (no real-time data).
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Commonly used for low-risk shipments.
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Semi-Active SSDs
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Features: Equipped with small batteries that activate in response to changes (e.g., container opening).
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Advantages:
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Wider tracking range (5–10 meters).
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Energy-efficient.
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Disadvantages:
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Do not support continuous tracking throughout the journey.
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Active SSDs
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Features: Include GPS, real-time connectivity, and advanced data encryption.
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Advantages:
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Real-time shipment monitoring.
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Remote control capabilities.
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Disadvantages:
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High cost.
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Battery management challenges and cross-border regulatory compliance issues.
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Potential Benefits of Smart Security Devices
For Customs Authorities
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Enhanced Risk Management: Identifying high-risk shipments via real-time data analysis.
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Streamlined Procedures: Faster clearance for low-risk goods.
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Combating Illicit Activities: Detecting tampering and smuggling through smart seals.
For Trade Operators
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Supply Chain Transparency: Accurate tracking of shipment location and condition.
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Cost Reduction: Fewer unnecessary inspections.
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Improved Reliability: Better delivery timing accuracy.
Key Challenges
Technical Challenges
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Interoperability:
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Variations in RFID standards and frequency bands across countries.
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Difficulty integrating devices with legacy infrastructure.
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Data Security:
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Risks of system hacking or data falsification.
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Regulatory Challenges
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Lack of Global Standards:
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No unified protocols for encryption or data exchange.
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Fragmented Legal Systems:
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Data privacy laws differ across jurisdictions.
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Operational Challenges
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Battery Life: Especially for active devices used in long-haul shipments.
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High Costs: May hinder adoption by small and medium-sized enterprises (SMEs).
Report Recommendations to Encourage Global Adoption
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Establish International Standards:
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Unify communication protocols and data formats.
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Strengthen Public–Private Cooperation:
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Partnerships between customs authorities and logistics service providers.
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Invest in Digital Infrastructure:
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Modernize customs systems to accommodate real-time data.
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Training Programs:
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Train customs personnel on using these technologies.
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Conclusion
While Smart Security Devices represent a breakthrough in securing and streamlining global trade, realizing their full benefits requires coordinated international efforts to overcome technical and regulatory hurdles. As the report emphasizes, smart customs are not merely a technological option but a strategic necessity in an increasingly complex and high-volume global trade environment.
