Electronic Signatures in Foreign Trade

 Since the legalization of digital signatures, we have seen a significant reduction of paperwork and enhanced streamlining of document signing processes worldwide. Organizations, governments, schools, individuals, and various other domains have started appreciating and implementing digital signatures to restructure their operations. One such domain that has begun reaping the benefits of digital signatures is Foreign Trade.

When we look at the import and export of the USA, the numbers are staggering. In 2019, the net worth of trade between the U.S and other countries was $5.6 trillion — $3.1 trillion in imports and $2.5 trillion in exports of goods and services. Looking at the sheer volume of commodities being traded, there is still plenty of room for the digitization and modernization of the existing process.

The problem statement

The import-export ecosystem involves tons of paperwork. If this paperwork is forged, damaged, or tampered with, it can lead to severe repercussions. If forged correctly, chances are people or companies can intentionally conceal, destroy, or manipulate invoices to import goods illegally. Forging import-export paperwork can result in companies or individuals claiming allowances from customs and getting unlawfully paid. This is a direct hit to the economy. With paper-based processes in use, we are also looking at high chances of someone forging seals used by the customs department to bring in illegal wildlife, gold, or even arms & ammunition. Authenticating documents like foreign transactions and transport manifest online add a much-needed layer of security and transparency, with so many sensitive matters at stake.

Digital signatures becoming the new norm

Digital signatures prove to be a full-proof way to ensure the authenticity of the signing parties, documents, and transactions on the internet. Not only are we looking at convenience as the prime factor, but also the legality and security that come with E-signature platforms. Digital signatures also maintain a detailed log of document modification, making it virtually impossible to tamper without being identified, further adding accountability to domains like import-export. In this day and age, we also see E-signatures becoming the norm in financial, legal, medical, and educational sectors, as well as in some government offices. By expanding the usage of digital signatures to cover more paper-controlled processes, government bodies and the taxpayers stand to reap lasting benefits in the longer run. The future of every administrative body is digital, and with digital signatures making their way to the import-export office, we are getting one step closer.

Also read: What You Should Be Looking for in a Digital Signature Provider

Scenarios that can be avoided using digital signatures

Like any other country, the USA is home to countless auto enthusiasts. However, there is a long list of imported vehicles deemed illegal in the country, and illicit importing of such vehicles can result in severe penalties. Some of the most sought-after cars, called Japanese Domestic Market vehicles or JDM cars, are also deemed illegal. The main reason why these cars are not allowed on American streets is because they are right-hand drive cars. The penalty of owning a JDM car in America is more than that of possessing drugs or even an automatic rifle! Digital signatures can prove to be pivotal in restricting such imports.

Cases of illegal import of commodities in America range from weird to bizarre. For example, back in 2012, Homeland Security and U.S. Immigration and Custom Enforcement agents arrested a resident of Florida named Eric Prokopi for illegally importing skeleton fossils of dinosaurs from different countries of the world. Most of these cases happen due to vulnerabilities involved with paper-based processes.

Conclusion:

Illicit import & export activities involving gold, silver, or any other commodities can not only leave a severe dent in the economy but can also act as a front for far more nefarious money laundering schemes. While digital measures like E-signatures cannot directly eradicate such activities, given the right digital ecosystem, they can play a significant role in reducing these scenarios by making import & export more transparent and accountable.

Visit our site today to know more!

Sources:

https://www.criminallawyergroup.com/practice-areas/import-and-export-crimes/

https://www.ice.gov/news/releases/ice-arrests-florida-man-illegally-importing-dinosaur-fossils

https://www.thebalance.com/u-s-imports-and-exports-components-and-statistics-3306270

Comments

Post a Comment

Popular posts from this blog

10 E-Signature Stats you must know if you own a Business in USA

Image
  10 statistics that showcase how important e-signatures are From Sumerians to Egyptians, the evolutionary journey of signatures is incredible. Gone are the days when we were required to carry pen and paper to sign a document. Now we can sign any document on the go, from anywhere and anytime. For decades now, e-signatures have been helping organizations enhance and speed up their operations. The e-signature technology became widely available and legal in the U.S. in 2000. In today's competitive market, e-signature software provides a comprehensive range of benefits and features to bring convenience, efficiency, and agility to business processes. For example,  e-signature  solutions essentially automate document workflows, allowing you and your team players countless free hours to focus on more priority and revenue-generating tasks - so that you can focus on actual business without worrying about document security and faster paperwork. In addition, you can save a lot on physical sto
Read more

Digital Healthcare with Electronic Signatures | DrySign USA

Image
  Digital Healthcare with signatures   Even some of the most advanced and state-of-the-art hospitals armed with the latest medical tech fail to deliver the experience that the patients might come to expect. Especially when they are handed a clipboard full of forms and other paperwork that needs signatures. Manual, paper-based workflows can add days, if not weeks, for something that can be done in a matter of hours! In such cases, there are hidden costs that you are paying, which may not get accounted for in the long run. The solution to these problem statements is digitization. Bottlenecks that can be avoided with a digital workflow Handling large volumes of paperwork could be taxing, depending upon what your approach is. When you resort to paper-based workflow, there is a myriad of things that can go wrong. 1.    Lots of hidden costs All the paperwork generated by countless patients requires excellent storage facilities and other infrastructural costs. In such cases, a strict protocol
Read more

Prevent Signature Forgery with DrySign Digital Signatures

Image
  Keep Your Organization Safe Against Signature Fraud with eSignatures A signature is a sign of consent or approval of the user's intent on a document. Despite the digitalization of various systems and processes, signatures still hold significant standing in legal and financial procedures. The potential to misuse signatures and signature forgeries is high despite the wide use of personal identification numbers (PINs). An average organization loses 5% of its internal revenue to fraud. People think signatures are less in demand in today's digital landscape. But the truth is that most organizations have been slow in shifting to digital processes and rely on signatures to authenticate documentation. As a result, signatures are used on checks, documents, contracts, and credit card transactions, giving way to various loopholes and incentives to commit fraud. What is Signature Fraud? Another question on a person's mind is how forgeable is my signature? Did you consider it when you
Read more