IDP & Document Automation – Frequently Asked Questions | iCustoms

IDP & Document Automation – Frequently Asked Questions

What is Intelligent Document Processing (iDP) and how does it differ from basic OCR?

Intelligent Document Processing (IDP) is a stack of technologies, including OCR, computer vision, Natural Language Processing (NLP), machine learning models, and artificial intelligence.

These technologies together ingest documents (PDFs, images, email attachments), recognise layout and fields, extract meaning, validate outputs, and route the structured data into the declaration system.

Basic OCR only converts pixels of text into character strings; it does not interpret what a text string means, group related fields into logical records, or apply regulatory validation.

Which customs documents can IDP process automatically?

IDP can process virtually any trade or customs-related document received electronically or scanned:

  • Commercial invoices
  • Packing lists
  • Bills of lading (house/master)
  • Air waybills
  • Certificates of origin
  • Phytosanitary and sanitary certificates
  • Export licences
  • Import permits
  • Inspection certificates
  • Insurance certificates
  • Hand-written arrival notes

How does iDP reduce errors in customs declarations?

It reduces errors at three levels:

(a) Data capture: Removes manual rekeying mistakes by reading directly from source documents
(b) Validation: Applies checks before submission
(c) Accurate form mapping: Automatically placing validated data into the correct fields of customs declaration forms, ensuring compliance with required formats and preventing rejections.

This reduces downstream rejections and audit risk, which are common causes of delays and fines.

How does document automation help in customs declaration processing?

Document automation streamlines customs declarations by removing repetitive, manual document handling tasks. Instead of physically sorting, reading, and entering data, the system automatically captures required details, validates them against customs rules, and maps them to the correct declaration fields.

This enables brokers, freight forwarders, and traders to process higher volumes of shipments faster, reduce clearance delays, and maintain compliance with strict filing deadlines.

Can IDP integrate with existing customs software?

Yes, IDP can integrate with customs declaration platforms (CDS, AIS, AES, NCTS) as well as ERP and freight management systems. Through API connections, processed and validated data flows directly into your existing workflows without requiring manual transfers.

This integration allows companies to keep their current software while adding powerful automation for document handling.

How does IDP handle different document formats from multiple suppliers?

IDP is format-agnostic. Whether a supplier sends a neatly structured Excel sheet, a scanned PDF, or a photograph of a paper invoice, IDP uses AI to identify key data fields regardless of layout.

It then converts all extracted information into a standardised format for customs submission, eliminating inconsistencies in naming conventions, units of measure, or date formats.

How does IDP improve customs clearance times?

IDP accelerates customs clearance by enabling declarations to be prepared and submitted faster, with fewer errors.

Since documents are processed in minutes instead of hours, and validation happens before submission, shipments can move through customs without delays caused by data mismatches, missing information, or rejected entries.

What role does AI play in IDP for customs documentation?

AI enables IDP to learn from document patterns, improve field recognition accuracy, and adapt to new document layouts without constant manual reprogramming.

In customs, AI can detect anomalies in declared values, flag unusual HS codes for review, and even predict potential compliance issues based on historical data patterns. This proactive approach reduces audit risks and helps maintain a clean compliance record.

How secure is the data processed by IDP?

Security is a priority in customs-related document processing. IDP platforms typically use encryption for data in transit and at rest, role-based access control, and secure cloud or on-premise hosting.

Audit trails record every data change for regulatory traceability, which is essential for customs audits and post-clearance reviews.

Can your IDP read handwritten customs documents?

Yes, iCustoms IDP (Intelligent Document Processing) is capable of reading and extracting information from handwritten customs documents. Our system uses advanced Optical Character Recognition (OCR) and AI-powered handwriting recognition to capture both printed and handwritten text.

However, the accuracy may vary depending on the clarity and legibility of the handwriting. For best results, our solution combines automation with manual validation options, ensuring that all extracted data is accurate and compliant with customs requirements.

Will IDP reduce customs fines and penalties?

Yes, iCustoms IDP helps minimise customs fines and penalties by accurately extracting and validating information from import/export documents.

By reducing human errors and ensuring compliance with customs regulations, our solution helps prevent costly mistakes and supports timely, error-free submissions.

How does IDP handle multilingual customs documents?

IDP uses advanced AI and Natural Language Processing (NLP) models capable of understanding multiple languages, including regional dialects and specialised trade terminology.

For international shipments, this means that invoices, certificates of origin, packing lists, or customs forms in different languages can be accurately read, categorised, and processed without manual translation. Multilingual capabilities also reduce the risk of misinterpretation, which is crucial for compliance with customs regulations across different countries.

Can IDP process scanned or low-quality documents?

Yes, IDP employs image preprocessing techniques such as de-skewing, noise removal, contrast enhancement, and intelligent binarisation. This allows it to extract readable data even from poor-quality scans, faxed documents, or photos of forms taken with mobile devices.

Businesses benefit by reducing manual data entry, correcting errors, and ensuring that low-quality documents do not become bottlenecks in customs processing.

How does IDP help ensure regulatory compliance?

IDP automatically validates extracted data against customs regulations, tariff codes, trade agreements, and other rules. For example, it can flag missing HS codes, incorrect quantities, or invalid exporter/importer details.

This reduces the likelihood of customs audits, fines, or shipment delays, ensuring that all documentation meets legal requirements before submission. It also helps compliance teams identify trends and address recurring issues proactively.

Can IDP learn and improve over time?

Yes, machine learning allows IDP systems to continuously learn from corrections and feedback. For example, if a customs clerk manually corrects an extraction error, the AI updates its understanding of that specific layout or terminology.

Over time, the system becomes more accurate, reducing the need for manual oversight, improving processing speed, and lowering the risk of human error.

Is IDP capable of real-time data extraction?

Absolutely, many modern IDP systems, such as iCustoms IDP can extract, validate, and classify data immediately upon document upload. This is critical for high-volume environments such as freight forwarding, where delays can affect delivery schedules.

Real-time processing accelerates customs clearance, enables faster decision-making, and allows businesses to respond quickly to regulatory or operational changes.

How customisable is IDP for different business needs?

IDP is highly customisable to match specific workflows, document types, or compliance requirements. Organisations can define rules for field extraction, validation criteria, exception handling, and document routing.

For example, an exporter dealing with both EU and US customs can set up region-specific rules for HS codes, tax calculations, and required documentation, ensuring seamless processing for multiple trade lanes.

What types of errors can IDP detect and prevent?

IDP detects a wide range of errors, including missing fields, inconsistent values, duplicates, and formatting mistakes. For instance, it can identify mismatches between the invoice and packing list, incorrect country codes, or missing shipment references.

By catching these errors before submission, IDP prevents potential customs penalties, delays in clearance, and costly manual rework.

Can IDP process both structured and unstructured documents?

Yes, structured documents like invoices, bills of lading, or customs forms follow predictable formats and can be automatically parsed. Unstructured documents such as emails, letters, or supplier notes require AI to identify relevant information amidst varying layouts.

IDP can accurately extract data from both types, ensuring that no important information is missed, regardless of the source or format.

How does IDP reduce operational costs?

By automating repetitive data entry and validation tasks, IDP reduces labour costs and eliminates the errors that often result in fines or delays. Employees can focus on high-value activities like compliance analysis, strategic planning, or customer support.

Additionally, faster document processing improves supply chain efficiency, reducing detention costs and improving inventory turnover.