Former U.S. Customs Chief Endorses CustomsTrace AI™ as Critical to National and Economic Security
Rhea-AI Summary
ScanTech AI Systems (Nasdaq: STAI) announced that its CustomsTrace AI™ platform has received endorsement from former U.S. Customs and Border Protection Commissioner Ralph Basham as critical to national and economic security. The platform, expected to launch in Q3/Q4 2025, is designed to address trade compliance challenges and enhance supply chain transparency.
The system features advanced imaging technology using ScanTech's patented gantry architecture for rapid product recognition, automated validation of harmonization codes and tariffs for cost efficiency, and AI-powered algorithms for superior detection capabilities. Key features include:
- Non-intrusive CT screening technology
- Commercial goods validation against tariff codes
- Enhanced contraband detection capabilities
- Reduced manual processing time
The company has assembled a Technical Advisory Committee including former officials from U.S. Customs, FBI, and logistics industry leaders to support the platform's launch and growth.
Positive
- Development of innovative customs screening technology with potential market applications
- High-profile endorsement from former U.S. Customs Commissioner
- Strong advisory team including former government and industry leaders
- Platform designed to reduce operational costs and improve efficiency
Negative
- Product still in development phase with no current revenue generation
- Launch timeline pushed to late 2025
- No proven market adoption or performance metrics yet
Insights
ScanTech AI's CustomsTrace platform shows promise but remains in development with no immediate revenue impact despite high-profile endorsements.
ScanTech AI's CustomsTrace AI™ platform represents a pre-revenue product development still in progress with launch targeted for Q3/Q4 2025. The technology leverages the company's patented fixed-gantry CT scanning architecture to create a customs intelligence system designed to validate commercial goods against tariff codes and detect contraband without disrupting trade flow.
The platform's three key differentiators include: 1) Advanced imaging technology using their proprietary gantry architecture for rapid product recognition, 2) Cost efficiency through automated validation processes that could reduce manual handling and associated costs, and 3) AI-powered algorithms for detection and classification that supposedly outperform legacy systems.
While the announcement highlights over a decade of technological advancement underlying this platform, we're seeing a product roadmap update rather than a commercial launch. No specific technical performance metrics, accuracy rates, or processing capacities are provided to quantify the promised improvements over existing solutions. The endorsement adds credibility but doesn't change the fundamental timeline for market availability or revenue generation.
This development targets legitimate market needs in customs operations, which face increasing volume and complexity challenges. However, with no announced customers, contracts, or revenue projections, this remains a future potential rather than an immediate catalyst for the business.
The endorsement from former CBP Commissioner Ralph Basham provides third-party validation for ScanTech AI's technology, though coming from a former rather than current official. This validation specifically frames the technology as addressing both national security threats and economic security through improved tariff assessment capabilities.
ScanTech AI has assembled an impressive advisory team including former high-ranking officials from U.S. Customs and Border Protection, FBI, and logistics sectors. This roster suggests strategic positioning for government relationship-building, though doesn't guarantee procurement success.
The platform's dual focus on economic security (tariff validation) and physical security (contraband detection) aligns with enduring bipartisan priorities. The reference to supporting "updated tariff policies" indicates positioning for current administrative initiatives.
From a government sales perspective, it's important to recognize that security technology procurement typically involves lengthy certification, testing, and competitive bidding processes. Even with former-official endorsements, revenue realization timelines remain uncertain.
The national security applications potentially expand ScanTech AI's addressable market beyond pure commercial applications, but government sales cycles are notoriously long and complex. This announcement represents groundwork for potential future government engagement rather than imminent contract opportunities or revenue.
ScanTech AI's New Platform is Being Designed to Address Critical Vulnerabilities in National Security Infrastructure
Atlanta, GA, April 23, 2025 (GLOBE NEWSWIRE) -- ScanTech AI Systems Inc. (the "Company" or "ScanTech AI") (Nasdaq: STAI), a global innovator in non-intrusive, fixed-gantry CT (Computed Tomography) screening technologies, announced that the development of its groundbreaking CustomsTrace AI™ platform has been endorsed by former U.S. Customs and Border Protection Commissioner Ralph Basham as critical to both national and economic security.
Basham, who also previously served as Director of the U.S. Secret Service, stated, “As the former Commissioner of U.S. Customs and Border Protection, I can attest that this technology could be a vital tool in safeguarding our nation from a wide range of threats and vulnerabilities—whether related to terrorism or our capacity to identify and assess tariffs, which are critical to our economic security.”
This powerful endorsement comes on the heels of ScanTech AI unveiling the development of CustomsTrace AI™, a pioneering application being engineered on over a decade of technological advancement, poised to redefine customs intelligence, compliance, and supply chain transparency.
The platform's sophisticated commercial goods validation system is purpose-built to address urgent and emerging trade compliance challenges. Advanced capabilities will be designed to validate commercial goods against their respective tariff and harmonization codes, in an effort to adhere to the President’s updated tariff policies and enhance visibility into potential risks.
Beyond protecting economic interests, CustomsTrace AI™ is also designed to support national security objectives by identifying illicit contraband shipments that might otherwise slip through traditional screening methods.
ScanTech AI expects to release the product in Q3/Q4 of 2025.
Key differentiators of the CustomsTrace AI™ system include:
- Advanced Imaging Technology: Utilizing ScanTech AI’s patented gantry architecture, CustomsTrace AI™ is expected to offer rapid and precise product recognition without disrupting trade flow.
- Cost Efficiency: Automated validation of harmonization codes and tariffs is anticipated to reduce manual processing time, leading to quicker clearance, reduced demurrage fees, and lower warehousing costs.
- AI-Powered Accuracy: Highly refined algorithms are anticipated to deliver industry-leading detection and classification capabilities, outperforming legacy systems currently reliant on outdated methods like canine detection.
ScanTech AI has strategically assembled a world-class leadership team and Technical Advisory Committee to support the launch and long-term growth of the CustomsTrace AI™ platform.
Our Chief Science Officer, Dr. Alfred Forbes, will oversee the final phase of technical refinement. ScanTech AI has assembled a dynamic business development team and an impressive, high-caliber Technical Advisory Committee and Board of Directors to guide market adoption. This powerhouse team includes nationally recognized leaders in customs, border protection, and logistics:
- Ralph Basham – Former Commissioner, U.S. Customs and Border Protection
- Robert Perez – Former Deputy Commissioner, U.S. Customs and Border Protection
- Mike McGarrity – Former Assistant Director, Counterterrorism Division, FBI
- Bill Aldridge – Former Division President, Cargo Services Group; Founder, US Consolidated Limited (acquired by DHL)
About ScanTech AI
ScanTech AI Systems Inc. (Nasdaq: STAI) has developed one of the world’s most advanced non-intrusive ‘fixed-gantry’ CT screening technologies. Utilizing proprietary artificial intelligence and machine learning capabilities, ScanTech AI’s state-of-the-art scanners accurately and quickly detect hazardous materials and contraband. Engineered to automatically locate, discriminate, and identify threat materials and items of interest, ScanTech AI’s solutions are designed for use in airports, seaports, borders, embassies, corporate headquarters, government and commercial buildings, factories, processing plants, and other facilities where security is a priority.
For more information, visit www.scantechais.com and https://investor.scantechais.com/.
Forward-Looking Statements
This press release contains forward-looking statements within the meaning of Section 27A of the U.S. Securities Act of 1933, as amended (the “Securities Act”), and Section 21E of the U.S. Securities Exchange Act of 1934, as amended (“Exchange Act”), including statements regarding ScanTech AI’s management team’s expectations, hopes, beliefs, intentions, plans, prospects or strategies regarding the future, including development of the CustomsTrace AI™ platform and any subsequent future effects or events if that platform is successfully developed, possible business combinations, revenue growth and financial performance, product expansion and services. Any statements contained herein that are not statements of historical fact may be deemed to be forward-looking statements. Additionally, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words “may,” “will,” “could,” “would,” “should,” “expect,” “intend,” “plan,” “anticipate,” “believe,” “estimate,” “predict,” “project,” “potential,” “continue,” “ongoing,” “target,” “seek” or the negative or plural of these words, or other similar expressions that are predictions or indicate future events or prospects, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking. The forward-looking statements contained in this press release are based on the current expectations and beliefs made by the management of ScanTech AI, in light of their respective experience and their perception of historical trends, current conditions and expected future developments and their potential effect on ScanTech AI, as well as other factors they believe are appropriate under the circumstances. There can be no assurance that future developments affecting ScanTech AI will be those that it has anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond the control of the parties) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements, including product and service acceptance, regulatory oversights, research and development success, and that ScanTech AI will have sufficient capital to operate as anticipated. Should one or more of these risks of uncertainties materialize, or should any of the assumptions of ScanTech AI prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. Additional factors that could cause actual results to differ are discussed under the heading “Risk Factors” and in other sections of the filings of ScanTech AI (and its predecessor, Mars) with the U.S. Securities and Exchange Commission (the “SEC”), and in the current and periodic reports filed or furnished by ScanTech AI (and its predecessor, Mars) from time to time with the SEC. All forward-looking statements in this press release are made as of the date hereof, based on the information available to ScanTech AI as of the date hereof, and ScanTech AI assumes no obligation to update any forward-looking statement, whether as a result of new information, future events or otherwise, except as may otherwise be required under applicable securities laws.
Contact:
ScanTech AI Systems Inc.
James White, CFO
jwhite@scantechibs.com
Investor & Media Relations Contact:
International Elite Capital Inc.
Annabelle Zhang
+1(646) 866-7928
annabelle@iecapitalusa.com
FAQ
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