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Common Customs Issues Faced by Importers and Exporters in 2024

Common Customs Issues Faced by Importers and Exporters in 2024 Global trade plays a pivotal role in a country’s economy. A country’s focus on imports signifies robust local demand and a thriving economy, while a significant export volume creates numerous job opportunities. Thus, to keep the economy stable, it is imperative to maintain a balance… Continue reading Common Customs Issues Faced by Importers and Exporters in 2024

Beyond Recognition: The Significance of Our Multimodal 2024 Finalist Status

Beyond Recognition: The Significance of Our Multimodal 2024 Finalist Status Efficiency and innovation are key components of the global logistics and trade industries. Every year, the Multimodal Awards honour these same ideas by rewarding businesses that push the envelope and promote smooth international trade. We are happy to announce that iCustoms has been selected as… Continue reading Beyond Recognition: The Significance of Our Multimodal 2024 Finalist Status

All You Need to Know About Customs Import Duty and Tax

All You Need to Know About Customs Import Duty and Tax When importing items outside the European Union, you must pass through the customs import duties and taxes. However, entering this exciting world involves encountering a number of unforeseen issues, particularly regarding customs charges. A vital electronic document, an import customs declaration, provides comprehensive information… Continue reading All You Need to Know About Customs Import Duty and Tax

From Streamlined to Stalled? Solving Rule of Origin Challenges in UK Construction with iCustoms

From Streamlined to Stalled? Solving Rule of Origin Challenges in UK Construction with iCustoms The construction industry has traditionally relied on the free flow of materials across borders. The European Union customs union provided advantages to UK construction sites prior to Brexit. Projects could use steel beams from Germany, pre-cast concrete blocks from Ireland, and… Continue reading From Streamlined to Stalled? Solving Rule of Origin Challenges in UK Construction with iCustoms

Trade Compliance News – April 2024

Trade Compliance News – April 2024 New SPS Import Controls Come Into Effect There’s been some confusion amidst the new BTOM checks especially following a recent report in the Financial Times, UK port authorities were informed that health and safety checks on EU imports wouldn’t proceed as scheduled. However this has been debunked and the… Continue reading Trade Compliance News – April 2024

Import Customs Clearance Process: All You Need to Know in 2024

Import Customs Clearance Process: All You Need to Know in 2024 All the imported items must pass customs before their delivery to the customers, which is referred to as import customs clearance. By verifying that the products are compliant with the trading regulations, this procedure prevents shipment delays. This meticulous process guarantees compliance with trade… Continue reading Import Customs Clearance Process: All You Need to Know in 2024

Stuck in Customs? Build a Smoother Supply Chain for Your Manufacturing Clients

Stuck in Customs? Build a Smoother Supply Chain for Your Manufacturing Clients Global supply chains are intricate and vital to the electronics manufacturing industry. Many manufacturers find it difficult to navigate the complexities of customs procedures, even if timely delivery and high-quality components are crucial. Freight forwarders face this difficulty directly since they have to… Continue reading Stuck in Customs? Build a Smoother Supply Chain for Your Manufacturing Clients

The ROI of IDP Technology: Quantify the Value for Your Business

The major challenge in international trade is managing complicated rules and ensuring that documents are processed quickly. However, reaching this level of efficiency can take time and effort.

For trading businesses of all sizes, manual data input from customs documents continues to be a laborious and error-prone procedure that may cause higher expenses and possible compliance issues. This is where IDP technology appears as a transformative force.

This blog explores the measurable return on investment (ROI) potential that automated data capture technology provides to companies in the global trade and customs industry. We will look at how IDP technology simplifies document processing procedures, analyse its advantages, and provide an organised approach for estimating its potential ROI.

Improved efficiency across industries using IDP

Intelligent document processing (IDP) is transforming customs and international commerce procedures. Here is how:

  • Streamlined Customs Declarations: By automating data collection, IDP shortens processing times and guarantees precision in customs declarations.
  • Enhanced Logistics Efficiency: Automating customs documents such as the Bill of Lading reduces processing time, which minimises shipping and logistics delays.
  • Faster Import/Export Documentation: IDP expedites operations such as importing/export license processing and commercial invoice processing, hence accelerating clearing processes.
  • Effective Compliance Management: IDP automates data capture and extraction from customs laws and trade agreements to help manage compliance.

Advantages of IDP for customs and international trade businesses

Implementing IDP technology provides several benefits customised to the special issues of international commerce and customs operations:

  • Efficiency gains: Businesses may drastically cut down on manual labour and processing times by automating document processing procedures, which will result in more efficient operations.
  • Improvement of accuracy: IDP technology reduces human data input mistakes, guaranteeing the accuracy and reliability of vital trade documents.
  • Savings: By automating document processing, labour costs and operating expenditures are decreased, increasing cost-effectiveness.
  • Enhancement of compliance: IDP solutions reduce the likelihood of non-compliance fines by making it easier to adhere to the intricate regulatory standards regulating global trade and customs operations.

Understanding ROI analysis for IDP implementation

ROI analysis for IDP

When contemplating the use of IDP technology in customs and trade procedures, it is critical to perform a thorough Return on Investment (ROI) study. Here’s a tailored summary of the three main categories for determining ROI in this context:

Enhanced trade and customs efficiency and cost savings

IDP technology expedites trade agreements, customs declarations, and processing of other relevant documents. Businesses may save a great deal of both time and resources by automating repetitive operations and minimising human involvement. For instance, quicker processing times result in shorter wait times for customs clearance, which lowers the expenses of storage and demurrage related to delayed goods.

Enhanced compliance and risk management

Through precise and speedy document processing, IDP solutions improve adherence to trade agreements and customs laws. Businesses may avoid fines and penalties for non-compliance by decreasing mistakes and delays in documentation. Furthermore, increased compliance encourages better risk management techniques, which reduces the possibility of interruptions to global trade activities.

Capacity to adjust to changing trade dynamics

IDP technology lets businesses react quickly to modifications in tariffs, trade laws, and customs processes. By automating document processing procedures, businesses may respond to changing needs more quickly and release updated products. This adaptability is critical for being competitive in the ever-changing world of global trade.

Conducting an ROI analysis is critical for correctly assessing the financial effect of IDP adoption in customs and trade operations. By quantifying the advantages in terms of cost savings, and improved compliance, businesses can make more educated decisions about investing in IDP technology.

Quantifying benefits of IDP in customs and trade operations

To assess the potential advantages of using automated document extraction systems in customs and trade procedures, we must examine the following factors:

Time savings

Estimate how much time can be saved by automating document extraction operations. Assume that a customs brokerage company spends 15 minutes on average processing 1,000 import/export documents by hand. This time can be cut down to five minutes per document using automation.

  • Manual processing time = 15 minutes per document x 1,000 documents = 15,000 minutes.
  • Automated processing time = 5 minutes per document x 1,000 documents = 5,000 minutes.
  • Time saved = 15,000 − 5,000 = 10,000 minutes.

Labour Costs

Determine how much labour costs can be saved by cutting the processing time. Assume an average hourly wage of £15 for manual data input people.

  • The labour cost is £0.25 per minute (£15 per hour / 60 minutes).
  • Labour cost savings = time saved x labour cost per minute.
  • Labour cost savings = 10,000 minutes x £0.25 per minute.
  • Labour cost savings = £2,500

Error Reduction

Calculate the cost savings from eliminating mistakes in document processing. If the current error rate in manual data entry is 2% and can be lowered to 0.5% with automation:

  • Current error cost = 2% X 1,000 documents X £75/error = £1,500 per day.
  • Automated error cost = 0.5% X 1,000 documents X £75/error = £375 per day.
  • Error reduction = Current error cost − Automated error cost.
  • Error reduction = £1,500 – £375 per day
  • Error reduction = £1,125 per day

Increased Throughput

Evaluate how automation could boost the capacity for document processing. Suppose the automated solution allows the company to process an additional 100 documents each day:

Suppose the automated solution allows the business to process 100 additional documents in a day:

  • Additional throughput = 100 documents per day.

Considering an average value of £250 per document, the additional revenue generated is:

  • Additional revenue = 100 documents * £250 each = £25,000 per day.

Consider intangible advantages

In addition to measurable advantages, emphasise intangible benefits such as increased data accuracy, client satisfaction, and decision-making capabilities. Although difficult to quantify, these features considerably increase the total value of the solution for customs and trade processes.

Takeaway

The use of Intelligent Document Processing (IDP) technology offers a revolutionary potential for trade and customs processes. IDP provides visible benefits and a strong return on investment by optimising procedures, boosting productivity, and guaranteeing compliance. A complete ROI analysis allows businesses to measure the benefits, such as reductions in time and expenses, greater accuracy, and the ability to adjust to changing trade dynamics.

Make an appointment for a demo with our team right now to learn how iCustoms’ IDP software may significantly increase your trade company’s return on investment. See firsthand how our tailored solution streamlines workflows, lowers mistakes, and increases efficiency, opening the door to cost savings and higher production. Don’t miss out—schedule your demo today!

FAQ's

What does IDP stand for in technology?

In technology, IDP stands for Intelligent Document Processing.

What are the techniques applied in IDP?

IDP uses techniques such as optical character recognition, natural language processing, machine learning, and artificial intelligence.

What are the benefits of using IDP Software?

Using IDP software has several advantages, such as better compliance, less manual work, more accuracy in data extraction, and enhanced efficiency.

What problem do IDP tools solve?

IDP products address the issues of human data entry, slow document processing, and error-prone document handling.

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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.

Solutions

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iCustoms' Intelligent Data Capture: Industry-Wide Benefits

In the current environment of global trade, obtaining precise and effective data is imperative for customs declarations, trade adherence, and international logistics. Nevertheless, manual data capture is still common in many businesses, which leads to laborious procedures, a higher chance of mistakes, and possible delays. These inefficiencies have the potential to significantly hinder competitive advantages and operational efficacy.

The demand for automation and better data accuracy in international trade operations is becoming more and more important as the amount of trade rises worldwide. A premier supplier of trade compliance solutions, iCustoms, recognised this difficulty and introduced Intelligent Data Capture, an innovative technology driven by contemporary Artificial Intelligence (AI). Beyond the constraints of manual data input, intelligent document processing and data capture technology provide a comprehensive solution for optimising trade compliance procedures and opening up a new era of accuracy and efficiency for companies involved in global trade.

Industry-Specific Issues & Solutions: Using iCustoms IDP to Address Trade Inefficiencies

IDP in Industry-Specific Issues & Solutions

The widespread use of manual data input across industries needs a specific approach to handle the different issues that each sector faces. The Intelligent Data Capture technology from iCustoms provides targeted solutions to optimise workflows, reduce mistakes, and provide efficiency gains for the following industries:

Customs Brokers and Agents

Challenge: Manually entering data for customs declarations from different trade documents takes a lot of time and is prone to errors. This can cause delays in cargo clearance, which affects both clients and the overall efficacy of customs brokerage services.

Solution: By automating data capture from a variety of documents, iCustoms IDP removes the need for human entry and the mistakes that come with it. This expedites the declaration process and gives customs agents and brokers more time to work on other projects, such as strategy planning and customer consultations.

Freight Forwarders

Challenge: Consistent data from various supply chain participants, including shippers and customs officials, can lead to consistency and delays in shipment processing. This inconsistency can also raise the likelihood of customs officials issuing fines and penalties for inaccurate declarations.

Solution: iCustoms IDP automatically captures and streamlines data from many sources to maintain data consistency across the supply chain. This removes discrepancies, simplifies activities for freight forwarders, and lowers the possibility of non-compliance and civil penalties problems.

Manufacturing

Challenge: The major issue faced by manufacturers is bill of lading. These are often complicated documents that include detailed product information, such as quantities, descriptions, and harmonised system numbers. Manually obtaining this data is time-consuming and error-prone, which might affect manufacturing schedules and cause delays in customs clearance.

Solution: The AI-driven data capture system from iCustoms does more than just automate data entry. It makes use of sophisticated algorithms to efficiently and accurately extract data from complicated texts. This helps expedite customs clearance and guarantees accurate product information collection, preventing delays and possible production interruptions.

Retailers & E-commerce

Challenge: Merchants and e-commerce companies handle an enormous amount of international shipments, which sometimes requires dedicating substantial resources to human data entry for customs declarations. This can have a significant financial impact and a big influence on processing times, which might delay deliveries and leave customers unsatisfied.

Solution: iCustoms IDP automates data collection for high-volume shipments, saving time and resources during processing. This facilitates the reallocation of resources towards core operations, expedites processing times, and ultimately raises customer satisfaction.

Supply Chain

Challenge: Manual data entry leads to information silos, which impedes supply chain management and real-time data visibility. Ultimately, this absence of transparency can have impacts on supply chain management, decision-making, and efficiency.

Solution: The iCustoms IDP automates data collection and easily interacts with current supply chain platforms. This breaks down information silos and enables real-time data insight across all touchpoints. Businesses may optimise their whole supply chain operations by making well-informed decisions about resource allocation, logistics planning, and inventory management when they have access to fast and reliable data.

Logistics & Transportation

Challenge: Incomplete or inaccurate information in bills of lading and commercial invoices can cause delays, incorrect routing, and higher transportation expenses. These problems completely disrupt logistical operations, which affects client satisfaction and business efficiency.

Solution: By combining intelligent data extraction processes and document validation technologies, iCustoms IDP guarantees correct data collection from shipping documents. This guarantees that all relevant parties have access to full and correct information, enabling seamless and effective logistical operations. iCustoms IDP helps companies optimise transportation expenses and uphold high levels of customer satisfaction by minimising delays and misrouting.

Postal & Parcel Companies

Challenge: For postal and parcel services, processing a large number of packages with various data points, including addresses, contents, and customs declarations, can be quite difficult. In addition to taking a lot of time, manual data input raises the possibility of mistakes, which can cause delays and unhappy customers.

Solution: The iCustoms IDP automates parcel data collecting and validation. This entails obtaining addresses, customs declarations, and additional pertinent data from several sources, including shipment manifests and labels. iCustoms IDP’s automation of this process allows for quicker processing times, reduces mistake rates, and boosts overall efficiency, which results in quicker delivery and a better client experience.

General advantages

In addition to sector-specific solutions, iCustoms machine learning and AI-driven solutions provide a variety of general advantages:

  • Enhanced productivity and efficiency: Automate data collection to free up important resources for other projects.
  • Decreased errors and enhanced data accuracy: AI-driven validation guarantees reliable and correct data for more seamless operations.
  • Better compliance and less risk: Having reliable and precise information lowers the chance of violating the rules and the fines that come with it.
  • Quicker customs clearance times: Decreased delays and quicker clearance are the results of streamlining data processing.
  • Lower operational costs: Automation and enhanced efficiency help cut costs by a large amount.
  • Improved visibility and control: Access to real-time data facilitates informed decision-making and gives traders greater control over trade procedures.

Bottom line

The IDP technology from iCustoms goes across industry borders, enabling businesses to confidently negotiate the challenges of global trade. For companies looking to streamline their trade compliance procedures and obtain a competitive edge, iCustoms’ data capture automation system opens up a world of opportunities with enhanced productivity, better data quality, and quicker clearing times.

Are you prepared to unleash the power of effective data collection? Speak with iCustoms right now to see how our Ai-driven data capture software can assist you in reaching your business’s goals.

FAQ's

What is Intelligent Data Capture?

Intelligent Data Capture is a system that uses complex algorithms and machine learning approaches to extract data automatically from various sources, including documents, forms, and pictures.

How can Intelligent Data Capture help my business improve efficiency and accuracy?

Intelligent Data Capture reduces human error and manual effort in data entry operations. Automating data extraction and validation makes faster decision-making, improved accuracy, and accelerated processes possible.

What industries can benefit from implementing Intelligent Data Capture solutions?

Intelligent Data Capture systems can help transportation, import/export trade, supply chain management, customs brokerage services, and international trade compliance.

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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.

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iCustoms Receives ICC Digital Trade Award for “Best Port or Logistics Systems”

iCustoms Receives ICC Digital Trade Award for “Best Port or Logistics Systems” Leading supplier of trade compliance solutions driven by artificial intelligence (AI), iCustoms, is pleased to announce that it has won the ICC Digital Trade Awards “Best Port or Logistics Systems”. This endorsement from the International Chamber of Commerce (ICC) highlights iCustoms’ innovation and commitment… Continue reading iCustoms Receives ICC Digital Trade Award for “Best Port or Logistics Systems”

Finalist - "Customs Technology Partner of the Year" by MultiModal Awards