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The Hashgraph Group (THG), a Switzerland-based company specializing in Web3 and AI technologies, and the Malaysian logistics company Teleport have formed a partnership to develop a Digital Customs Documentation System (DCDS). This system aims to digitize and manage the lifecycle of customs documents in cross-border trade, with a focus on eCommerce transactions.
Optimization of cross-border trade
The new system aims to enhance efficiency and security in cross-border trade in Southeast Asia. It will address issues such as incorrect package classification, documentation errors, and disputes that often lead to delays in customs clearance. According to a study by Avalara from 2023-2024, 43% of companies report that their shipments are delayed in customs, while 41% identify complex and non-harmonized customs regulations as one of the biggest challenges in the supply chain.
The system will be equipped with three key technical features. First, immutable shipping event logs will be secured using Hedera’s Distributed Ledger Technology (DLT). Second, there will be seamless integration with TradeTrust, an established framework that standardizes digital trade and provides legal certainty. This enables paperless and tamper-proof trade documents that improve customs risk assessment and reduce the necessary manual efforts for customs clearance. Third, AI-driven validation of Harmonized System (HS) codes will be integrated to further enhance classification accuracy.
Integration of technologies to improve customs processing
The Digital Customs Documentation System will be capable of capturing immutable and verifiable records of all significant shipping events. The implementation of the TradeTrust framework allows for the provision of legally recognized electronic trade documents (LRETD) and addresses challenges in traditional logistics, such as the incorrect classification of hazardous goods. By utilizing DLT, transparency is created, while LRETD offers legal certainty and AI is employed to improve classification accuracy.
Teleport, which has one of the largest and deepest air logistics networks in Southeast Asia, moved over 167 million packages in the region in 2025. The Digital Customs Documentation System will utilize the Hedera Consensus Service (HCS) to digitize and manage the complete lifecycle of customs documents, initially focusing on cross-border routes to Malaysia and high-volume domestic flights.
Milan Dhingra (right), Chief Product and Technology Officer at Teleport, emphasized the need to integrate traditional logistics with Web3 technology: “We are committed to creating a verifiable and immutable source of truth for seamless and faster customs clearance. Teleport will always be a physical company, but our way of working must be digital-first.”
Deepak Lalan (left), Head of GCC and Corporate Programs at the Hashgraph Group, added that the solution is designed to be globally scalable and to support cross-border logistics by land, air, and sea. The full integration of THG’s TrackTrace solution will enable immutable data verification, traceability, and transparency through cryptographically verified decentralized identifiers (DIDs). The proof of concept for this enterprise solution is planned for the first half of 2027 and will bring merchants and other partners in the ecosystem together on a shared Digital Customs Documentation System.
