Customs clearance is integral to any international movement of goods, implying that all goods and merchandise exported are subject to some form of customs process.
In the US alone, goods worth an estimated $3.35 trillion were imported in 2022, on which duties of $111.8 billion were collected.
Given the criticality of the customs process, these customs inspections and associated documentary requirements and filings are quite comprehensive and complex, with stringent penalties prescribed for violations.
To accurately assess the value of imported merchandise and ensure that the duties levied thereupon are correct, Customs regulations stipulate that they be provided information regarding the goods, such as the value, details of the parties to the transaction, pricing and costing data, insurance, personal information of the importer and exporter, and financial records of the entities involved.
To provide this completed and error-free information, employees in importers’ and freight forwarders’ offices will have to compile and collate requisite data from various sources.
Considering the sensitivity of this information and that it is handled by numerous persons, it is imperative that the data be stored securely and that utmost care be taken to ensure that it is not misused or leaked to unauthorized persons.
The storage and security of data thus becomes an important responsibility, with the onus lying on the importer and freight forwarder.
Cloud platforms: a secure medium to store and share data
Cloud platforms are software applications hosted in the cloud, which users can access from anywhere using the internet.
Cloud computing gained rapid popularity as companies realized that cloud-based solutions offered more flexibility and were reasonably priced in comparison to the traditional physical IT infrastructure.
Amongst the many advantages of cloud platforms is the ability to store information securely, thus eliminating the need for local storage.
Cloud storage is therefore being used by more and more businesses., as companies look to digitize their data and streamline documentation handling.
Advantages of Cloud Platforms for Customs Clearance
From the perspective of customs clearance, cloud platforms are especially well-suited to meet the needs of importers and forwarders, with the prominent advantages being :
1. Data accessibility and reliability:
The nature of Customs data is such that it needs to be accessed by multiple stakeholders are various points of time, as and when the need arises.
Local data storage options are at a distinct disadvantage, as data stored locally can be accessed only by some employees, and if it needs to be shared, then employees with access have to do it. This might cause delays in time-sensitive customs clearance tasks, given the time difference between the exporting and importing countries or if employees are engaged elsewhere.
With cloud platforms, however, data is stored in a central location, readily accessible by all authorized personnel. This ensures real-time access to data and avoids delays that might arise from delays in sharing information.
KlearNow’s cloud-based infrastructure guarantees reliable and secure storage, enabling businesses to retrieve critical customs data instantly, thereby enhancing operational efficiency.
2. Scalability and adaptability:
One of the challenges faced by SME enterprises during their growth phase is to ensure that their IT infrastructure and systems are scalable and adaptable to meet the higher volume of work and information that would inevitably come with growth in trade volumes.
With local IT servers or standard technological solutions, given their inherent capacity limitations, it is generally difficult to handle greater scale in terms of business transactions or geographical locations.
Premium solutions, such as KlearNow’s proprietary software, offer scalable solutions that seamlessly adapt to the evolving needs of businesses, ensuring efficient data management without compromising performance.
3. Disaster recovery and business continuity:
The current business environment is characterized by high levels of instability and rapidly evolving commercial dynamics.
The dispersion of supply chains and interdependencies with multiple economies and modes of transport have greatly increased the likelihood of contingencies and disasters, which have the potential to cause severe operational and commercial disruptions.
The criticality of data in today’s world has elevated data security to the top of business risks as perceived by organizations, since loss of data or systems failures in traditional data storage methods can translate into financial losses, lost sales opportunities, prolonged delays in meeting customer orders, erosion of goodwill, and expose the company to the risks of regulatory violations and failure to comply with customs requirements.
Considering the magnitude of the ramifications, organizations are extensively focussing on disaster recovery plans and business continuity strategies, wherein KlearNow’s cloud-based backup solutions can play a vital role in disaster recovery measures, by providing a robust mechanism to maintain continuity in the face of unforeseen events, ultimately safeguarding critical customs data.
Innovative cloud integration with KlearNow
In the logistics and supply chain industry, KlearNow has made a mark with its AI/ML-powered cloud-based platforms, which go beyond conventional solutions to offer a seamless, secure, and user-friendly experience for businesses in the realm of customs data management.
For importers and forwarders who deal extensively with customs, KlearNow offers some compelling value propositions:
1. AI-driven security measures:
Apart from automation of global trade workflows, KlearNow’s solutions are underpinned by cutting-edge technology, offering a maximum level of security, and ensuring that critical customs data remains protected from potential cyber threats and unauthorized access.
When documents are submitted on KlearNow’s platform, they are treated as classified information, with access restricted only to authorized users. The platform also protects the IP address of the parties accessing the data.
2. User-friendly interface and Analytics
The utility of any system, no matter how sophisticated, is dependent on the ability of the person using it. Therefore, companies prefer systems that are easy to use and navigate.
KlearNow’s intuitive interface makes it easy for businesses to navigate and analyze customs data efficiently. This user-friendly approach enhances the overall user experience, contributing to the effectiveness of cloud-based data backup strategies.
3. Ease of customs audits
Considering the numerous audit requirements that are mandated or conducted for the sake of good corporate governance, it is an advantage if the data is stored securely and in a structured format.
This is especially useful during customs audits, as the information and documents are readily available, which helps quicken the audit process.
Contact KlearNow.AI to elevate your customs data security with our cloud-based solutions.
