Trillions of dollars worth of goods are moving around the world on a daily basis. International trade and transportation are critical to the global economy’s health. However, the lack of visibility into a large amount of important logistical data and unanticipated supply chain threats create challenges to the market. The global trading system is vulnerable to terrorist exploitation, which would severely damage the entire global economy and the social well-being of nations. Custom agencies, therefore, have a great responsibility to strengthen supply chain security while also contributing to socio-economic growth through revenue collection and trade facilitation.
Efficiency and operational excellence
One of the challenges for customs agencies is ensuring the efficient movement of goods and reaching operational excellence. Over the years, customs agencies have heavily invested in technology to process transactions automatically. However, there still is the need for one system that efficiently processes millions of export declarations, automatically calculating taxes to be paid, quotas, checking permits, and so on, without the need for human intervention.
Wide-open door for international trade
Another challenge is to make it easier and cheaper for the logistics community to do business. Customs requirements are complicated and necessitate a great deal of information to be declared, products to be classified, paperwork to be handled, and licenses to be in place. As a result, shippers and buyers often have to rely on customs agents to do their customs work, which is both costly and time-consuming. Therefore, making it easy for firms to trade across borders makes the country more appealing to do business and boosts economic growth.
Stay efficiently compliant
Ensuring trade compliance in a timely and effective manner is yet another customs challenges. The most fundamental task in international trade is determining the correct customs tariff classifications and export control classifications for a product. Subsequently, it is critical to consistently apply these classifications once they have been established. Global classification can be a difficult undertaking but is an essential part of customs and trade compliance. Without correct classifications, it is not possible to achieve the correct customs duty calculation or preferential treatment determination.
What is the solution for customs challenges?
Customs agencies need the right digital solution that fits their processes and organizational structure. HAKOVO’s Smartariff an automated AI solution that resolves bottlenecks at customs clearance by facilitating international trade compliance. It:
- identifies dutiable shipments;
- checks additional product details to identify the correct HS code; and
- updates its database with new products that are imported frequently.
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