International trade involves a number of documents, which means collating, interpreting, analyzing, and updating massive amounts of data.
Information requirements are vast and varied, as the numerous stakeholders in any export and import transaction need data for various internal and regulatory purposes. This information is available and shared in various forms, such as Excel spreadsheets, Word documents, PDF files, emails, and paper.
Many document management systems are available on the market to address these challenges. These systems are designed to store, manage, and track electronic documents alongside digital images of paper-based records. These systems not only streamline documentation processes but also play a crucial role in enhancing document visibility. By centralizing access and ensuring that stakeholders can view and share accurate, timely, and complete information, document management systems help parties effectively meet customs documentation requirements.
Given the significant costs and delays associated with late, inaccurate, incomplete, or non-compliant information regarding customs regulations, document visibility has become indispensable. Ensuring all stakeholders have access to relevant, reliable data is key to smooth international trade operations.
Document visibility and management are closely intertwined
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- The Advantages of Intelligent Document Processing Within Customs Operations
- Prioritizing Accuracy, Speed and Scalability Through Intelligent Document Processing
Implementing effective documentation management systems is essential for achieving complete document visibility for all parties involved in trade.
Common Documents in International Trade
The volume of data that is shared and documents prepared in an international transaction is staggering.
Besides common documents, such as the Bill of Lading, Commercial Invoice, Letter of Credit, Import Customs Declaration, Import License, Letter of Credit, and Certificate of Origin, several other documents are also required depending on the commodity, origin, destination, and local customs requirements. These documents are created and managed within document management systems, which help streamline the process and ensure compliance with various regulations.
For instance, shipping flowers from Kenya to the Netherlands can involve managing an astonishing 200 documents.
Each of these documents is vital for the smooth transport and customs clearance of imported goods. Even if one document is missing, incorrect, or not submitted on time, there will be delays while the document is rectified or information is provided to the customs department, port authorities, or the transportation vendor.
The Need for Document Visibility in Customs Clearance
In this information maze, each party must have access to the data and documents they need to perform their role. This is the essence of document visibility. Effective documentation management systems allow users to create customized envelopes containing specific files for different recipients, ensuring that individuals only see the documents relevant to them.
If an importer is required to submit a certificate of origin to the customs department in their country, complying becomes much easier if they have ready access to the certificate and its information. If they lack such document visibility, they will either fail to comply with customs regulations or delay their submissions.
Conversely, document visibility can enable them to proactively retrieve documents or information and arrange pre-clearance of imported goods.
Similarly, with document visibility to pre-arrival notifications, Customs can be informed in advance about the arrival of cargo, enabling the importer or customs broker to make appropriate arrangements for timely customs clearance and inland delivery to the final destination.
It is obvious that document visibility enables the smooth flow of global supply chains and the rapid movement of cargo across borders. By instituting good documentation management practices, importers can facilitate document visibility, and streamline information sharing and the customs clearance process.
The Role of Technology in Document Visibility
Improvements in documentation management and document visibility have to be underpinned by technology. Manual processes, reliant on human efforts, are sub-optimal and prone to errors and delays, both in processing information and keeping stakeholders updated.
When a shipper submits a proforma invoice to importers and awaits their confirmation before proceeding with shipment formalities, the process can face setbacks if the document gets lost amidst other paperwork. In such cases, the shipper must resubmit the proforma invoice, resulting in delays to the shipment timeline and additional administrative effort.
Likewise, if an employee makes a mistake while preparing the Import Customs Declaration, which is detected after it is submitted to Customs, clearance of the goods will be delayed until the document is rectified and resubmitted.
With document visibility in place, the probability of such errors or omission and commission is greatly minimized, as the information is digitized, auto-populated, and easily retrievable.
Enable Trade Document Visibility with KlearNow
KlearNow’s customs clearance platforms digitize paper-based transactions, automate workflows, and provide transparency in international trade transactions, thereby creating document visibility and making customs compliance easier. Understanding who is responsible for paying customs duties is crucial in the shipping process, and KlearNow’s platforms help clarify these responsibilities, ensuring smooth customs clearance.
KlearNow’s suite of products includes KlearCustoms, KlearHub, and KlearEngine. Each is equipped with functionalities that enable document visibility.
Click here for a free demo of how these products can help your business.
