Author: Laura Bulmer
In the fast-paced world of global trade, the smooth movement of goods across borders is essential for businesses involved in importing, exporting, and freight forwarding. However, one of the significant challenges these businesses face is linking customs documents.
This seemingly mundane task can become a complex web of bureaucratic hurdles, technological issues, and logistical headaches. Let's delve into the difficulties surrounding the linking of customs documents and explore why this process can be so challenging for businesses.
We often get businesses asking us to help them with the data capture and the subsequent creation of new documents using that data. Crucially they also want some form of link between related customs documents that often arrive separately, and regularly have no number or reference tying them together. This can lead to a lot of very time-consuming manual effort for businesses.
Whether your business imports, exports or deals with freight in anyway, linking customs documents can be a significant challenge as we talk about below.
Every country has its own set of customs regulations and documentation requirements. These regulations can vary significantly in complexity and specificity, requiring businesses to stay up-to-date with ever-changing laws. Importers, exporters, and freight forwarders must ensure that all documents meet the specific requirements of both the exporting and importing countries.
This can include:
The digital transformation of customs processes has been both a blessing and a curse. While digital systems can streamline operations, they also introduce a new layer of complexity. Integrating various software platforms used by different stakeholders, such as customs authorities, shipping companies, and logistics providers, can be a daunting task.
Key challenges include:
Despite technological advancements, human error remains a significant challenge in linking customs documents. Errors in data entry, document preparation, or submission can lead to delays, fines, or even the seizure of goods.
Common mistakes include:
Effective communication is critical in the logistics and supply chain industry. However, language barriers, time zone differences, and varying communication practices can hinder the seamless exchange of information.
For instance:
Geopolitical events and shifting trade policies can have a direct impact on customs documentation requirements. Trade agreements, tariffs, and sanctions can change rapidly, requiring businesses to adapt quickly.
The Electronic Trade Documents Act which received Royal Assent in 2023 was one such major change that meant paperless trading became a reality for hundreds of UK businesses. Keeping up with these changes and ensuring compliance can be a significant burden.
While the challenges are significant, there are strategies that businesses can implement to mitigate these difficulties.
Adopt integrated software solutions that facilitate seamless data exchange and improve accuracy. Ensure that these systems are regularly updated to comply with the latest regulations. A system like DocuWare can accurately capture data down to line item level, reducing the manual input needed and accidental human errors. This data can then be easily pushed into any integrated software.
Provide ongoing training for employees to stay informed about regulatory changes and best practices in documentation and compliance. Training staff and working on new skills can also boost morale and loyalty to the company.
If regulations become too difficult to handle, consider partnering with customs brokers or freight forwarding experts who have in-depth knowledge and experience in handling customs documentation.
Implement standardised communication protocols and use translation services when necessary to bridge language barriers.
Regularly monitor changes in trade policies and regulations to stay ahead of potential disruptions.
Here at DocTech, we can help by accurately capturing the data from documents involved in customs processes and link them together using a feature in DocuWare called 'linked documents'. In the case of one of our customers, we have used email subject lines as a way to tie customs documents together as there was no other unifying information.
Intelligent Indexing picks up other information from the emailed documents such as shipment and MRN numbers, and securely stores them, with access only available to authorised users.
There are many options available and the preference of how to link customs documents will vary from business to business. To find out what's best for your organisation, we'll have a call to understand your requirement, test samples of your documentation to check they can be captured accurately, and then map the current process with you. We will then determine the solution needed and go from there with our recommendations.
Linking customs documents is a critical but challenging aspect of international trade. Importers, exporters, and freight forwarding businesses must navigate a complex landscape of regulations, technology, and communication hurdles to ensure the smooth movement of goods.
By understanding these challenges and implementing effective strategies, businesses can minimise risks and enhance their efficiency in global trade operations.
If you are interested in a discussion about improving the way you handle your customs documents, please get in touch.
