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Neoflow is pleased to share a significant milestone regarding our work with U.S. Customs and Border Protection (CBP): the release of a Federal Register Notice (FRN), formally providing details about the system that enables a transparent supply chain for pipeline crude oil.
A Federal Register Notice (FRN) is an official government publication that informs of upcoming regulatory changes, a crucial part of the regulatory process. In this case, U.S. Customs and Border Protection (CBP), a division of the Department of Homeland Security (DHS), issued an FRN related to the monitoring and tracking of Canadian crude oil shipments across the U.S./ Canada border: (FR Doc. 2024-19627)
The FRN provides an overview of issues related to the current clearing process of Canadian pipeline crude oil across the U.S. border. Chiefly, the lack of visibility into origin traceability through the supply chain, required to establish Free Trade Agreement (FTA) eligibility. This often means the collection of unnecessary tariffs as Canadian crude oil crosses into the U.S. Neoflow has developed a platform utilizing Decentralized Identifiers (DID) and Verifiable Credentials (VCs) that addresses the issue. The platform has completed multiple rounds of successful user testing that included government agencies and major industry players. The platform was developed under the Department of Homeland Security’s Silicon Valley Innovation Program (SVIP). Neoflow helped shape the Global Interoperability Standards (GIS) utilized to track and trace movements of crude oil through the North American pipeline network that are embedded in the platform.
Our platform allows U.S. Customs and Border Protection (CBP) to have near real-time visibility into a complex supply chain, addressing issues of ownership verification, Free Trade Agreement (FTA) applicability, and data confidentiality. This gives CBP the opportunity to address current issues and automate and eliminate processes.
The publication of the FRN marks a significant milestone for Neoflow. Beyond the formal recognition of the platform’s digitization impact in a global market, it brings Neoflow closer to full operational status.
We are pursuing a vision of enabling greater transparency, compliance, and efficiency in some of the biggest industries in the world, so having the official buy-in of a major government is a major step forward. There are implications in using our platform they include:
1. Innovation in Trade Facilitation:
Introducing a more efficient and transparent system for managing the flow of Canadian crude oil into the United States; offering automated tracking and ownership updates in near real-time.
2. Enhanced Compliance and Data Security:
Utilizing decentralized identifiers (DIDs) and verifiable credentials (VCs), to provide a secure, tamper-proof chain of custody for pipeline commodities. This ensures data confidentiality while enabling seamless verification of FTA eligibility.
3. Potential for Broader Implementation:
Applying Global Interoperability Standards (GIS) will have significant implications for broader markets. While this FRN is mostly focused on Pipeline Crude Oil, it does mention other pipeline-borne goods. We are excited by the opportunity to expand the usage of GIS to many more products and markets.
The release of this Federal Register Notice is a significant step in Neoflow’s mission to modernize and enhance cross-industry data flows. We are grateful for the opportunity to work with CBP and DHS in both defining such standards and rolling them out. Neoflow will continue to demonstrate its ability to provide innovative, secure, and scalable solutions for the energy sector.
You can find the FRN published on federalregister.gov, and are welcome to contact us directly at info@neoflow.energy.