From Manual to Intelligent: The AI Advantage for Customs Intermediaries
- John Hall
- Customs Specialist at iCustoms.ai
Drowning in paperwork, chasing updates, and dealing with constant delays? That’s the daily reality for many customs intermediaries.
With international trade getting more complex and fast-paced, the old manual ways just can’t keep up. Errors, delays, and compliance risks are harder to avoid when everything is done by hand.
But there’s a smarter way forward: AI. In this blog, we’ll explore how AI is transforming the customs process and helping intermediaries work faster, stay compliant, and reduce stress.
Who are customs intermediaries?
Customs intermediaries are individuals or organisations that facilitate the movement of goods across borders by managing customs formalities. Their work ensures that trade is compliant, efficient, and seamless.
Types of customs intermediaries
1. Customs Brokers
Licensed professionals or firms that specialise in customs clearance and compliance, acting as intermediaries between traders and customs authorities.
2. Customs Agents
Specialists (often overlapping with brokers) who focus on the submission and compliance side of import/export documentation.
3. Freight Forwarders
Similar to customs brokers, they assist with customs clearance and compliance, often on behalf of importers or exporters.
Read on to learn how AI is redefining customs brokerage: Click here!
The changing landscape of international trade
International trade isn’t what it used to be. It is more complex and increasingly data-heavy, demanding more precision and accuracy.
Customs intermediaries have to deal with more complex and intricate global supply chains and constantly evolving regulations. This leaves no space for any error; one delay or documentation slip can ripple through the supply chain, causing lost revenue and unhappy clients.
Operational hurdles for customs intermediaries
Let’s break down what customs intermediaries have to deal with on a daily basis:
Complex documentation
The major challenge is to get through customs and trade documents, which take a lot of time. Collecting supporting certificates or documents, filling out forms and making sure everything is up to the mark can consume hours. And the time adds up quickly when you are handling many shipments at once.
High risk of errors
Most customs intermediaries are still relying on traditional methods for documentation, which carry a high risk of errors. Entering data manually leaves space for typos, incorrect information or missing fields. These errors might seem small, but they can cause big problems such as shipment seizures, penalties or delays.
Regulatory changes
Customs regulations and trade agreements aren’t fixed; they are subject to frequent updates, requiring customs intermediaries to stay current on the latest requirements.
When running on manual processes, staying up to date becomes a full-time job; you need to train your team, keep track of the updates, and amend your operations accordingly to maintain compliance. This is a big challenge and tough to manage.
Communication
Communication is another weak spot. Without automation, sending updates between your team, your clients, and customs authorities often involves emails, calls, or manual reports. That leads to miscommunication, missed messages, and delays.
Tracking shipments
Another major challenge is to get a clear picture of where your shipment is. Tracking shipments isn’t easy when your systems are manual. When something goes wrong, you usually find out too late to fix it.
How is AI beneficial for customs intermediaries?
Customs intermediaries can use AI tools to automate the customs processes and address challenges like compliance issues, data entry errors, and delays.
Here’s how AI fixes these issues within customs operations:
Document automation and intelligent processing
AI tools use natural language processing and machine learning to read, understand and extract data from various structured or unstructured customs documents. It pulls usable data from invoices, packing lists and certificates and maps it into the right fields on the customs form.
iCustoms offers such a tool, i.e., iDP, which intelligently processes documents with lightning speed, saving 50% time and cost.
Automated HS codes assignment
Many AI tools provide accurate Harmonised System (HS) codes based on the product descriptions you provide, saving you from misclassification. These systems use NLP and ML to analyse the product descriptions and specifications to find out the most appropriate HS code.
One such tool is iClassification, which ensures 99% accuracy and also allows you to upload bulk products at one go.
Error detection and compliance checks
Many AI-driven systems are designed to detect errors and discrepancies in the customs declarations, such as missing fields and incorrect HS codes or other information. It saves you from penalties and shipment seizures.
Machine learning algorithms verify data against documentation standards and specific regulations to ensure compliance. Moreover, it can proactively flag potential issues such as fraudulent activity or sanction violations, allowing businesses to take preventive measures.
Risk assessment
AI-based risk assessment systems can analyse trade data to identify high-risk shipments and prioritise inspections, enhancing efficiency and reducing delays for low-risk consignments.
AI can detect patterns indicative of fraud or non-compliance, enabling businesses to focus on the most problematic areas.
Communication
AI-powered platforms can facilitate communication and information sharing between customs intermediaries, clients, and customs authorities, ensuring all parties are on the same page.
Furthermore, AI-driven chatbots can provide 24/7 customer support, answering queries and assisting with customs procedures.
Cost savings and efficiency
AI-powered automation can reduce operational costs by eliminating manual tasks and speeding up the customs clearance process.
Plus, AI can also help businesses identify opportunities for duty savings, such as taking advantage of trade agreements or duty deferral programs.
To bring it all together
Customs formalities are difficult to handle; they require expertise to deal with lots of paperwork, tight deadlines, and constant updates. Doing all this manually just adds more stress; that’s where AI comes in.
AI does not replace the customs intermediaries; it helps them avoid errors, work faster and stay on top of regulations. Moving from manual to smart tools isn’t just helpful, it is the way forward in this competitive world.
Ready to experience the power of iCustoms’ AI-based solutions for customs intermediaries?
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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.