**London**: Customs Support Group is revolutionising customs clearance through AI-powered Intelligent Document Processing, aiming to streamline operations and enhance efficiency while retaining human oversight. The company targets full digital processing of customs declarations across 14 European markets by January 2025.
Customs Support Group, Europe’s largest customs clearance company, has embarked on a transformative journey, revolutionising the customs clearance process from a traditionally paper-heavy burden to a streamlined digital operation. Under the guidance of Ian Featherstone, Chief Digital Officer (CDO), the company is harnessing AI-powered Intelligent Document Processing (IDP) to enhance efficiency and offer tailored business growth advice to clients across Europe.
The shift towards digitalisation began after the United Kingdom’s exit from the European Union in 2020, which resulted in an increase in customs paperwork and associated delays. The need to adapt to these changes came with increasing pressure on trade and logistics, prompting Customs Support Group to integrate advanced digital technologies into its operations. By late 2024, the company commenced trials of AI-driven document processing solutions in its UK office, marking a significant pivot in the customs sector’s approach to handling paperwork.
“The industry as a whole was very paper driven,” Featherstone noted, expressing the challenge posed by the extensive documentation required by logistics providers, freight forwarders, and other stakeholders. The adoption of AI not only aimed to mitigate the bureaucratic burdens felt by customers but also to enhance internal workflows, allowing for a more agile response to the complexities of customs and trade regulations.
According to the 2024 CSG Strategic Radar Customer Survey, while 42% of large players in the manufacturing and logistics sectors acknowledge the potential of AI to improve efficiency, there remains hesitance among 27% of respondents who view the introduction of AI as a potential risk, given the intricate and evolving nature of trade compliance and customs regulations. This concern emphasises the necessity of retaining qualified human oversight when implementing automation strategies.
To ensure a safe and efficient transition to digital processing, Customs Support Group focused on developing technologies capable of quickly handling diverse documents, all while reserving critical decision-making tasks for qualified customs agents. The process involves AI completing initial data entry, followed by human experts who review and validate the information before declarations are submitted to the relevant authorities. This method has led to a drastic reduction in the time traditionally spent on document processing, with the hope of enhancing overall operational efficiency by up to 50% by 2025.
Featherstone shared insights into team’s initial concerns about technological integration. He stated, “Initially, our agents felt nervous…when people see tech come in and work 50% faster, they automatically assume that we will need less people.” Contrary to this belief, the efficiency gains have fostered higher job satisfaction, as employees can focus on more intricate tasks that leverage their expertise.
Moreover, the company has begun offering “Customs-as-a-Service,” expanding the role of customs agents beyond routine declaration tasks. With the assistance of AI, agents can now dedicate their time to optimising financial outcomes, such as navigating regulatory changes affecting tariffs or managing supply chain efficiencies. Featherstone elaborated that, previously, agents would only apply their knowledge in the closing stages of the processing; now, AI automates the bulk of operations, allowing personnel to consistently utilise their expertise.
Customs Support Group has set a noteworthy goal to process every second of its annual customs declarations—totalling around four million—fully digitally across 14 European markets by January 2025. The process carefully integrates various rounds of testing to refine AI accuracy, seeking to ensure minimal human intervention for low-resolution or handwritten documents. In initial tests, the AI exhibited a 99% efficiency improvement for simple tasks and a 36% boost for more complex declarations.
Future aspirations for the company involve expanding its AI capabilities beyond the UK to countries such as Italy, Sweden, the Netherlands, and Belgium, aiming to cover all 14 markets by the end of 2025. By this timeframe, the target is to process approximately 1 million customs declarations using AI technology. Furthermore, Customs Support Group envisions increasing its current digital processing rate of 50% to between 80% and 90% by 2026, with the expectation that a minority of documents will still require manual handling.
“The transformation will never be finished,” Featherstone remarked, highlighting the ongoing nature of technological evolution within the company. He stated, “Yes, there have been challenges. But the important thing is that we keep moving.” This continuous improvement approach is essential for the company, as it embraces new technological tools to enhance operational efficiency and client value.
Customs Support Group’s journey from a paper-based operation to a predominantly digital one represents a significant shift in the customs industry, reflecting the broader implications of AI adoption in enhancing business processes and service delivery without overshadowing human expertise.
Source: Noah Wire Services