The future of customs for businesses

Most companies will have to deal with customs, and businesses that understand customs regulation can reap huge benefits. The gains can be financial, by knowing the correct customs rates, or in the amounts of time saved by understanding the technical procedures and necessary formalities. 

Customs regulations can be complex to the average employee not used to dealing with customs. Customs systems are also in a constant state of flux and are currently in the midst of a digital transition making customs a time-consuming and resource-intensive topic for businesses.

Customs are in the midst of an extensive digital transformation

Large areas of the export industry are already being digitized and in the foreseeable future a complete digitalization is expected – including customs.

In 2013 the European Parliament issued a customs code demanding certain customs requirements from EU’s member states. This has led several EU countries to modernize and digitize their national customs systems.

The customs code aims to make trade across national borders easier and safer for businesses in Europe.

The EU has effectively brought the customs system on the agenda in order to streamline and promote trade within the EU. Long-term, this will greatly benefit businesses trading within the EU.

Previously, every shipment required comprehensive data entry but the first steps towards a fully digital customs flow is well under way. The benefits are many and you can look further into them here.

The digitalization of customs will streamline the process for most businesses

The future of customs for businesses

Change is the one constant in the customs services of the future. The Danish IRS view the future this way:

“The Customs Authorities’ systems will all be affected by change to various extends until 2021. Additionally, new systems will have to be implemented for all steps that are not yet digital. Thus, it will be necessary for businesses to adapt their IT solutions to this long-term.”

Every part of the customs system will be digitized so current manuel processes will have to be moved to new systems. The digital transformation is more comprehensive though. Many existing system will be replaced by new ones as some are up to 25 years old and not compatible with current or future systems.

What does the future hold for customs in businesses?

The digital transiton in the global export industry (including customs) will lead to an integration with the supply chain. In other words, existing parties that previously handled customs will merge and allow for full transparency during the process. Like in other industries, this will lead to more streamlined and cost-effective supply chains based on data and cloud systems.

It’s hard to paint an accurate picture of what the customs system of the future will look like as it’s still under development. The one thing certain is that it will be less time-consuming and more efficient.

With the current digital transformation of the customs system in mind, it becomes important for businesses to think digitalization into their organisation from the early stages. The customs system of the future is in flux, so it’s wise to place all your company’s customs tasks with a cloud-based trade platform.

Clearview Trade is a digital trade platform helping businesses with all things related to export.

Clearview Trade is leading the digital transformation of the export industry and offers customized solutions for businesses. Learn more on The Export Portal.

See how we can help your company here