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Clifford Evans

Technology

AI: The end of an era?

03 Dec 2024 - by Clifford Evans
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One cannot emphasize enough the impact technology has had on the clearing and forwarding industry over recent years. Daily, we use electronic tools such as EDI, efiling, NAVIS, even email to name but a few, but if we look back, the true impact of technology becomes shockingly clear.

Remember when communication was by fax instead of email, when Customs was paid by bank-guaranteed cheque instead of via efiling or when containers were released from the terminal on a Container Terminal Order instead of via NAVIS?

In those days, clearing and forwarding agents were always in competition to employ the best customs runners and entry clerks as the day-to-day operations depended almost entirely on these functions. A customs runner, for example, was required to have customs knowledge, be able to deal with the then Portnet, know how to resolve issues with the shipping lines, conduct inspections, obtain release from Other Government Agencies and possibly even draw and deliver cargo. All documentation was manual and every step in obtaining release of a consignment was done by a physical visit.

How things were done began to change when computers became available, but the real game-changer was the introduction of EDI in 2009, and over the next few years, slowly but surely, electronic replaced manual. Unfortunately, a consequence of embracing the new technology, was the demise of the customs runner who was no longer required to spend most of his day on the road to obtain release of a consignment. The role of the customs runner has been diminished to attending physical inspections and to delivering and collecting documents from OGAs and clients.

Similarly, and there may be disagreement, an entry clerk of yesteryear has become a data capturer today. When capturing a customs declaration, more than 80% of the data fields are pre-populated by the service provider, duties are calculated automatically, a parts library provides automatic tariff classification and search engines provide options to insert additional information if required. Errors are detected by the electronic system, with some system providers not allowing the declaration to be completed if an error is detected which minimises the risk of clerical error. A customs declaration with hundreds of lines can now be captured, submitted to customs and released within minutes.

Artificial Intelligence is poised to become even more prominent in the very near future, and just as the use of a customs runner has become redundant, the need for entry clerks may soon follow suit. South Africa has already, and successfully, tested programmes whereby the export declaration in the country of origin is used as the import declaration, eliminating the need to process a new entry. A fully functional National Single Window will also eventually lead to a completely paperless process with minimum input from the clearing agent. AI is, however, already being used as a replacement for entry clerks, with data entry automation being utilized i.e. the framing of a bill of entry is completely automated. This not only frees up time for employees to focus on higher-value tasks, but also allows for improved customer service as customs brokers are able to devote more attention to client services. All for the better, one may say, but sadly, it is the end of an era in many respects for those who have fond memories of how things were done in the past.                                

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