Unlocking Efficiency with Data Management
Leading up to BREXIT, the automotive industry recognized that to maintain a seamless flow of inventory, they would need to plan ahead. Overnight, hundreds, if not thousands, of declarations, parts numbers, and HTS codes would all require management just to operate the normal day-to-day business. A large part of the planning process was considering how to manage the ‘heavy data entry task’ that comes with a typical Customs declaration for the industry.
The volume of declarations post-BREXIT increased to 78.3m in 2021 just for the UK [1] . One way to combat the increase was to hire data entry clerks or invest in technology to manage it.
Part of this planning included leveraging partnerships to manage the same level of accuracy, focusing on compliance with customs procedures, and identifying ways to continuously improve efficiencies when handling higher volumes of data. The World Customs Organization (WCO) acknowledged the need for “Scaling up Customs Digital Transformation," and the theme encouraged “Embracing data culture and building a data ecosystem.”
In line with the WCO’s approach, His Majesty’s Revenue and Customs (HMRC) and customs brokers were in the process of aligning with this strategy. HMRC is transitioning from a document-driven process in the outdated Customs Handling of Import and Export Freight (CHIEF) system to a data-driven customs environment, the Customs Declaration Service (CDS). This first step will drive towards a complete overhaul of the border systems within the UK. According to HMRC, “The UK to be the most effective border in the world by 2025,” made more viable with the evolution from document to data-driven processes [2] .
Customs brokers, driven by the increased volume of entries post-BREXIT, have increasingly utilized digital tools and further leveraged the output of these tools within their customs systems. These efforts are moving the needle from the heavy data entry perception of customs to a digital smart age of customs.
Digital Tools Are Being Used in the Customs World
A boom in smart devices around the home and everyday life has made manual tasks, like turning the lights on and adjusting thermostats, easier and quicker. The world of customs is no different. Optical Character Recognition (OCR) and OCR with machine learning “scrape” or “lift” data from commercial invoices instead of having to do this manually. Machine learning adds a smart element to the OCR software, remembering previously seen document formats and most used data fields, accelerating data processing and the accuracy of data extraction.
These tools enable the transfer of data captured directly into the customs software. The tools, in addition to more popular existing options such as Electronic Data Interchange (EDI) and uploading Excel sheets, reduce and, in some cases, remove the manual element of administrative tasks.
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