Switzerland’s The Hashgraph Group and Malaysia’s Teleport are co-developing a Digital Customs Documentation System (DCDS) to digitize customs processes for cross-border trade. Initially targeting e-commerce, the proof-of-concept uses Hedera’s distributed ledger, TradeTrust for legal e-documents, and AI-assisted HS code validation. According to the source, 43% of organizations face shipment delays from customs issues, and 41% cite regulatory complexity as a top supply chain obstacle. The system will launch on select Malaysian routes and scale across air, land, and sea. Teleport handled over 167 million parcels across Asia Pacific in 2025.
According to technode.global, Malaysia-based air logistics firm Teleport and Switzerland-based Web3 & AI engineering firm The Hashgraph Group (THG) will jointly co-develop a Digital Customs Documentation System (DCDS) to digitize and manage the full lifecycle of customs documentation for cross-border trade.
Proof-of-Concept Focus on E-Commerce and Southeast Asia
The system is currently in development as a proof of concept and will initially target e-commerce shipments. Teleport stated the platform aims to improve efficiency and security across cross-border logistics in Southeast Asia. According to Teleport — established in 2019 as the logistics venture of affordable airline AirAsia — the DCDS is designed to address persistent operational pain points, including parcel misclassification, documentation errors, and disputes stemming from multi-party handling.
Data-Backed Customs Challenges
Research by Avalara cited in the source states that 43 percent of organizations report shipment delays due to customs issues, while 41 percent cite complex and inconsistent regulatory requirements as major supply chain obstacles. These figures underscore the urgency of digitization efforts in customs processes — a critical bottleneck in regional trade flows.
Three-Pillar Technical Architecture
The DCDS integrates three core technologies:
- Distributed ledger technology via the Hedera network to create immutable records of shipping events
- Integration with the TradeTrust framework for standardized, legally recognized electronic documents
- AI-assisted validation for Harmonized System (HS) codes to improve classification accuracy
Teleport highlighted that the system is expected to enhance transparency, reduce manual processes, and support faster customs clearance through tamper-proof and verifiable trade records.
Deployment Scope and Scalability
Teleport, which operates a large air logistics network in the region, handled more than 167 million parcels across Asia Pacific in 2025. The DCDS will initially deploy on selected Malaysian cross-border routes and high-volume domestic air cargo lanes. It leverages Hedera’s Consensus Service to manage customs documentation and is explicitly designed to scale across land, air, and sea transport modes. The platform will also integrate with THG’s TrackTrace solution to deliver end-to-end supply chain visibility via verifiable digital records.
Commercial Context and Momentum
Teleport reported revenue growth of 10 percent year-on-year in the fourth quarter of 2025. This expansion follows its foundational role in AirAsia’s ecosystem and reflects growing demand for integrated, tech-enabled air logistics services in Southeast Asia — a region where e-commerce freight volumes have surged amid rising consumer expectations for speed and traceability. Notably, this initiative aligns with broader industry patterns: DHL launched its AI-powered customs advisory tool in 2024, while UPS expanded digital customs integrations across ASEAN in early 2025. For supply chain professionals, the DCDS signals a shift toward interoperable, standards-based digital documentation — reducing reliance on paper-based, siloed systems and lowering compliance risk across fragmented regulatory jurisdictions.
Source: technode.global
Compiled from international media by the SCI.AI editorial team.
