Here's how progressive customs clearance is

While the other verticals of the logistics sector are mostly in the news, the customs clearance is the least talked about vertical. However, that doesn’t necessarily mean that the vertical is stagnant. There is a lot happening in the arena. Let’s take a close look at each factor contributing to the vertical’s progression.

Technology boost – Emerging technologies have been dominating the space and are expected to bring a radical shift in the way customs clearance generally works. Due to the incorporation of the latest technology in the operations, the customs clearance process has become faster. For instance, if a process used to take 12 hours earlier, will now take only 12 minutes. This looks achievable due to process automation. Automated facilities have the potential to slash the time it usually takes for customs clearance at Indian ports. If we consider the scenario in Mumbai, India, the government has started acknowledging the role of blockchain, machine learning, and artificial intelligence in reducing the clearance time. The implementation of these state-of-the-art technological advancements will also eliminate physical documentation.

IT integration – Efficient management of customs clearance operations largely depends on IT integration between customs brokers and customers. This would not only accelerate the customs processes but also largely cut down on the risks of liability of importers and exporters for errors made by their service providers. IT integration would also increase the possibility of identifying and analyzing discrepancies, if any.

Leveraging regulations – Different countries have different regulations. As making through the global trade market comes with its associated risks, therefore, to seize maximum opportunities, it’s wise to leverage regulations. Talking about futuristic reform, customs clearance would be seen leveraging the potential of country-wise regulations to make the most out of the opportunities.

Personalizing public services – In order to make life of the trading community, customs staff, and border agencies easier, it’s important for the customs agents to personalize the services and offer more engaging user experience. Eventually, the customs agents have recognized the importance of personalized public services and are striving to re-design, measure, analyze, and automate the trading experience around the end user.

Incorporation of smarter hardware – Low cost hardware with greater processing power such as smart seals or trafficking sensors can be of great help for customs agencies. They will be able to detect if a seal on a cargo item is tampered with and locate the container well before it reaches the customs official. Customs clearance has actually taken a cautious step forward due to this trend.

Just like the other areas of logistics and supply chain, customs clearance has a huge room for improvement. Logistics and supply chain experts are constantly on the lookout for new trends and emerging technologies that can enhance the customs clearance processes.