7 Key Factors for Assessing IDP Vendors for Customs Intermediaries
- John Hall
- Customs Specialist at iCustoms.ai
As the global Intelligent Document Processing (IDP) market is expected to grow to $4.1 billion by 2027, automation is no longer optional; it is necessary for modern businesses.
IDP provides a more intelligent approach to managing paperwork, lowering manual errors, and maintaining compliance with changing rules for customs intermediaries.
However, not every IDP solution is made equal, particularly when it comes to the particular requirements of customs procedures.
This blog will help you choose a solution that improves efficiency, accuracy, and long-term scalability by breaking down seven crucial factors to consider when assessing IDP suppliers.
7 key factors to consider when choosing an IDP solution
With numerous IDP vendors in the market, choosing the right one can be a challenge, but these 7 factors can simplify the selection process.
1. Comprehensive domain knowledge of international trade and customs procedures
Extracting text from PDFs or pictures is only one aspect of customs documentation. It necessitates a thorough comprehension of regulatory frameworks, document interdependencies, and trade-specific terminology.
For example, a commercial invoice is more than just a file; it must be consistent with the bill of lading, certificate of origin, and customs declaration to avoid discrepancies.
When assessing an IDP provider, ask:
- Does the platform understand data fields specific to a given trade?
- Can it automatically evaluate Incoterms (such as DDP vs. EXW) against shipping routes and distinguish between them?
- Does the IDP have global customs format training?
- Can it check for missing fields or incorrect information?
2. Accuracy in contextual validation and data extraction
In customs processing, accuracy is a requirement; delays, fines, or audits may result from even a little mistake in a duty calculation or product description.
Handwritten writing, poor-quality scans, and multilingual documents frequently cause problems for traditional OCR technologies. Modern IDP systems must include contextual validation in addition to extraction.
Important things to think about:
- Verify the vendor’s IDP ability by testing their capacity to manage a variety of fonts, languages, and document degradation (such as smudged ink on paper forms).
- Contextual understanding: Is it possible for the system to cross-reference information between documents? For instance, confirming that a commercial invoice’s total amount corresponds to the customs statement.
- Automatic correction systems: Does the platform handle ambiguities intelligently? For instance, distinguishing “100KGS” from “100KMS” in a cargo report.
3. Smooth integration with existing system
Customs intermediaries rarely operate in a technological vacuum. The majority use a combination of government portals (for example, ACE in the U.S.), ERP systems, and customs broking software. An IDP solution must act as a bridge, not a barrier, between different platforms.
Things to look at:
- API flexibility: Implementation times are shortened from months to weeks by using pre-built connections for common systems.
- Real-time data sync: To prevent manual re-entry, make sure that extracted data enters downstream systems immediately.
- Legacy system compatibility: The IDP must be able to communicate with customs agencies that still utilise outdated databases without compromising performance.
4. Scalability to manage volumes of international trade
The traffic at customs is unpredictable. Demands for documentation might spike unexpectedly during peak seasons (like Christmas imports), geopolitical changes (like sanctions), and pandemics. To tackle these issues, your IDP vendor must be able to scale with ease.
Things to evaluate:
- Cloud-native architecture: IDP solutions must have the ability to automatically expand resources during times of high volume.
- Processing speed: Calculate the number of pages processed per minute (PPM) while the system is loaded.
5. Security and compliance
Cybercriminals and regulators see customs data as a treasure. Any violation or lack of compliance can lead to heavy fines, legal repercussions, or license revocation.
Important security features to look for:
- Certifications: ISO 27001, SOC 2, GDPR compliance, and customs-specific accreditations (e.g., CBP ACE certification).
- Data encryption: AES-256 encryption for data at rest and in transit.
Access controls: Role-based permissions and audit trails for accountability.
6. Customisation without complexity
Not all the customs intermediaries are the same. One may specialise in the importation of automobiles to Germany, while another may concentrate on the exportation of pharmaceuticals from the UK. Your IDP solution must accommodate these workflows.
Criteria for evaluation:
- Easy configuration: Drag-and-drop tools for creating custom workflows without requiring developer intervention.
- Template flexibility: The capacity to specify unique approval hierarchies, validation criteria, and data fields.
- Multi-tenant support: For organisations that oversee customers with various compliance requirements.
7. Economical and quantifiable ROI
IDP is an investment, and stakeholders expect measurable results, such as quicker client onboarding, decreased processing times, and lower mistake rates.
Things to look at:
- Pricing models: Compare per-document costs vs subscription tiers. Watch for hidden fees (e.g., API call charges).
- ROI timeline: How quickly does automation offset manual labour costs?
Support expenses: Fees for customer service, maintenance, and training matter.
Choosing the right IDP provider for effortless customs documentation
The ideal IDP solution doesn’t just automate processes; it revolutionises the way customs intermediaries function, facilitating quicker clearances, increased client trust, and proactive compliance.
Keep the above 7 points in mind, iCustoms offers an AI-powered IDP solution designed to handle the documents of modern trade. With our IDP, clients typically see a 40–60% reduction in processing costs within six months, alongside a 90% drop in compliance errors.
You may also like:
Simplify Customs with our Powerful Customs Management Software
Automate declarations, track shipments, & ensure compliance.
About iCustoms
iCustoms is an all-in-one solution helping businesses automate customs processes more efficiently. With AI-powered and machine-learning capabilities, iCustoms is designed to streamline your all customs procedures in a few minutes, cut additional costs and save time.
Simplify Customs with our Powerful Customs Management Software
Automate declarations, track shipments, & ensure compliance.