Major benefits in tariff classification

Digitalisation is delivering tangible improvements in South Africa’s customs environment, with automated processing reducing clearance times and administrative burdens, according to Easy Clear general manager Michael Henning. He said significant progress had been made by SARS through electronic data interchange (EDI), automated workflows and risk-based processing, supported by initiatives such as the Authorised Economic Operator (AEO) programme. “The SARS Single Window is another important development aimed at improving data sharing and implementing a single, standardised point of entry for trade and other government agencies, as well as private- sector parties such as the ports,” he told Freight News. “The aim is to reduce dwell times and improve port throughput.” But, he said, while data and an increasingly connected supply chain were improving visibility and impacting decision making, it did not eliminate physical infrastructure constraints affecting freight movement. “A border that is inefficient and still reliant on manually driven processes will become congested and slow. Regulation that has not caught up with technology can also result in increased transit times where processes are misaligned and don’t support technological solutions.” Africa, he said, was adopting technology faster than previously anticipated. “The usual suspects – cost, infrastructure, access to technology and connectivity – still prevent companies from unlocking greater value from technology, although this is changing rapidly.” AI, meanwhile, remains the dominant technology discussion, not only in freight and logistics but across industries globally. “Depending on where you sit on the subject, it is either something to be embraced or treated with disdain,” said Henning. In customs, one practical application is using AI to assist with the tariff classification of imported goods where the correct commodity code is unclear. “What is important is that behind the results returned by AI is a trusted and experienced tariff or entry clerk who can validate and still make the final decision on the tariff determination before submitting the declaration for customs clearance.” AI’s ability to analyse large volumes of data is also proving valuable in identifying unusual behaviour and risks far more quickly than manual monitoring, while AI-powered bots could provide first-level support by responding to frequently asked questions or retrieving information from a knowledge base. Henning believes AI is now moving beyond experimentation and hype towards becoming a practical tool for logistics operators. “As a software service provider, we have moved from cautiously understanding AI to actively determining our AI strategy for the future, which is less about replacing people and more about augmenting operational decision making.” Henning said the growing use of AI was also placing greater emphasis on cybersecurity as logistics operations became more connected and dependent on digital systems. “AI, if used irresponsibly, can leave companies and data at risk.” LV