Approximately 32% of customs delays are caused by documentation errors.
This is not only frustrating; it causes financial strains.
Poor document handling, ranging from incomplete certificates to mismatched invoices, can cost businesses time, money, and trust. For customs agents, the challenge is clear: process faster, with fewer errors, and remain compliant with changing trade regulations.
Here’s where Intelligent Document Processing (IDP) comes in. In this blog, we’ll explain what IDP is, how it works, and why it’s quickly becoming an essential tool in the customs industry.
Intelligent Document Processing (IDP), at its core, is the next step up from document automation. It automates document processing by combining artificial intelligence, machine learning, optical character recognition (OCR), and natural language processing (NLP).
In contrast to traditional OCR solutions, IDP is able to comprehend the context and meaning of the data in addition to recognising and extracting text from documents.
It can understand different kinds of documents (such as invoices, certificates, and declarations), extract important data (such as HS codes, Incoterms, and EORI numbers), and even highlight irregularities or discrepancies.
Learn more about IDP with our detailed guide: Click here
It’s a fact that customs documentation is a confusing process. One missing field or misclassified item can lead to delays, fines, or even seizure of goods. Here are the usual suspects causing trouble:
Manually handling these documents increases the risk of errors, slows down clearance, and leads to poor audit trails.
In customs operations, documents don’t just pass through; they’re validated, cross-checked, matched, and audited. There’s a very thin margin for errors; that’s where Intelligent Document Processing (IDP) comes in.
Here are the top four customs document workflows where IDP delivers immediate, measurable impact:
The challenge:
Documents frequently arrive in pieces: some by email, others as scanned PDFs from logistics partners or suppliers. Pre-arrival clearance is delayed due to incomplete or incorrect data.
How IDP can help:
Automatically extracts data from documents scanned from various sources and maps extracted data into customs-ready fields. Plus, it also flags any missing or suspicious data before submission.
It extracts key data points like:
The challenge:
Manually compiling import documentation that includes dealing with commercial invoices, packing lists, and waybills is prone to errors and delays. A single incorrect HS code can lead to rejections or penalties.
How IDP can help:
It extracts and cross-verifies critical data such as:
Then, it matches extracted data against a predefined rules engine or national customs database (e.g., UK CDS, Irish AIS). It also outputs structured data formats for direct upload into customs declaration platforms.
The challenge:
Transit operations under NCTS (New Computerised Transit System) require accurate tracking of customs offices, routes, and bonded warehouse references. Errors in documentation can stall shipments at borders.
How IDP can help:
It extracts key transit data from TADs (Transit Accompanying Documents), MRNs, CMRs, and transport documentation, helping a smooth transit.
The challenge:
The Import Control System 2 (ICS2) regulation mandates that Entry Summary Declarations (ENS) must be filed before goods enter the EU. Delays or errors in security filings can lead to shipment holds or fines.
How IDP can help:
It extracts the required data for ENS from customs documents, including airway bills, invoices, and shipping documents. Then it validates completeness and accuracy against EU customs rules.
While faster document handling is a huge win, the true power of Intelligent Document Processing (IDP) goes beyond this. For customs agents, it’s transforming how compliance, risk, and operations are managed.
Here are five strategic advantages IDP brings beyond automation:
IDP can handle entire document workflows without human input, unless something needs attention. Only exceptions or anomalies (like unclear values or mismatched data) are flagged for review.
Why it matters:
Customs agents spend less time on routine data entry and more time resolving high-value issues. This also reduces error-prone manual work.
Before a declaration is submitted, IDP checks for inconsistencies in key data, such as mismatched HS codes, vague commodity descriptions, or incorrect values.
Why it matters:
Catching these risks early prevents rejections, penalties, or shipment delays. It also ensures accurate data for customs submissions and audits.
Once documents are processed, data can be directly exported into key customs and logistics platforms, such as CDS, AIS, AES, NCTS, and ENS systems.
Why it matters:
This reduces duplicate entry, simplifies integration with broader supply chain systems, and ensures consistency across.
Every document, extracted data field, and validation step is stored in a searchable archive.
Why it matters:
Whether it’s a spot check or internal QA, customs agents can instantly access any record with full traceability. No more last-minute document hunts.
The future of customs is not only faster but also smarter. IDP enables customs agents to do more than simply process paperwork. It provides them with greater control, clarity, and compliance than manual methods ever could. If you want to stay competitive in international trade, now is the time to embrace intelligent document processing.
At iCustoms, we created an IDP solution designed specifically for customs professionals. It reads, extracts, and validates data from all of your critical documents for you, saving you the effort.
Intelligent Document Processing combines artificial intelligence, machine learning, optical character recognition, and natural language processing to extract and understand data from customs documents. Traditional OCR simply recognises and digitises text, whereas IDP interprets the context and meaning of extracted data. In customs operations, this means IDP can identify HS codes, Incoterms, and EORI numbers, validate them against regulatory rules, and flag discrepancies, going far beyond basic text capture.
The most common customs document errors include discrepancies between declared values and commercial invoice amounts, incomplete certificates of origin, mismatches between packing lists and actual goods, incorrect HS code classification, and non-compliant ENS filings under ICS2 requirements. IDP addresses these issues by automatically cross-validating extracted data against regulatory rules before submission, flagging inconsistencies for agent review, and reducing the reliance on manual data entry that introduces these errors in the first place.
IDP automates pre-arrival processing by ingesting documents from multiple sources, including scanned PDFs and emailed attachments, and extracting key data fields automatically. It captures consignor and consignee details, country of origin, product descriptions and customs values, and any HS codes present in the documentation. Additionally, it flags missing or suspicious data before agents submit pre-arrival notifications, ensuring clearance is not delayed by incomplete information when goods approach the border.
IDP reduces import declaration errors by extracting commodity codes, Incoterms, customs values, gross and net weights, and importer and exporter EORI numbers from source documents, then cross-verifying them against the rules engine of the relevant customs system. For UK CDS submissions, this validation prevents rejections caused by misclassified codes or incorrect duty calculations. For Irish AIS filings, it ensures data consistency between commercial invoices, packing lists, and declaration fields before submission.
IDP supports NCTS transit operations by extracting key data from Transit Accompanying Documents, Movement Reference Numbers, CMR consignment notes, and other transport documentation. It maps extracted data into the fields required for NCTS declarations, reducing the manual effort involved in entering route information, customs office references, and bonded warehouse details. Accurate, automated data extraction helps prevent documentation errors that could stall shipments at border crossing points during transit operations.
Automate declarations, track shipments, & ensure compliance.
Automate declarations, track shipments, & ensure compliance.