The growing complexity of cross-border trade regulations demands a data-driven solution, and AI is emerging as the answer.
Cross-border trade is becoming increasingly complex, with new regulations and compliance requirements being added every year. To stay ahead of the competition, businesses need to adapt quickly to these changes. This is where AI comes in.
Our latest white paper explores the benefits of using AI to streamline complex regulatory requirements, enhance customer experience, and future-proof your business. Check out 5 intriguing facts on AI from our latest research below! Want to read the full white paper? Download your free copy now!
1. Data quality is at the root of cross-border compliance challenges
“Data – and data quality – is at the root of the compliance challenges we’re dealing with as an industry. The regulatory burden brought on by authorities seeking to more accurately record cross-border shipping at a parcel level and combat tax evasion has pushed many to the breaking point.” Walter Trezek, Chair of the Consultative Committee of the Universal Postal Union Non-Executive Chairman of the Supervisory Board, Eurora.
The rise of globalization and e-commerce has revolutionized the shipping industry, enabling businesses to reach customers beyond their borders. However, with cross-border shipping comes an increase in the complexity of regulatory compliance, particularly regarding taxation, customs, and the quality of data. To keep pace, companies must embrace technology to streamline and automate compliance processes, stay ahead of regulatory changes, and meet evolving demands in the shipping industry.
2. There is no future for cross-border trade without AI
“There is no future for cross-border trade that doesn’t include AI. The volume of data that we’re talking about is massive, it requires an advanced machine to manage it. Once we accept that, then the question becomes ‘how can we use AI?’ There are many different ways and places in the process that AI can enhance and add value. The more data you have, the more patterns you can identify – that unlocks opportunities we haven’t had before.” Kristi Helekivi, Manager of AI Monitoring, Eurora.
In today’s fast-paced world of global trade, businesses are faced with an overwhelming amount of data. The volume of data is so massive that it’s simply impossible for humans to handle it alone. This is where AI comes in as a game-changer. By leveraging AI, businesses can efficiently process vast amounts of data in mere seconds and adapt to regulatory changes with ease. In the competitive landscape of cross-border trade compliance, it’s essential to future-proof operations with the use of AI.
3. AI automates trade compliance throughout the entire supply chain journey
“That’s the beauty of technologies like AI. They’re modular. You might start using them to automate HS code allocation, but that same data has multiple uses, and businesses can scale them quickly. In the HS code example, the same system can easily be used to calculate tax and duties, and it’s an incremental upgrade from there to include IOSS/OSS registration and management. Then you can very easily provide recipients with accurate duty and tax calculations at point of sale and build on top of that to automate the collection of those duties from the consignee.” Chris Lentjes, CEO of US operations, Eurora.
The potential of AI in cross-border trade is vast. A simple API integration with an AI engine like Eurora can give you access to automation throughout the entire supply chain journey. From the moment a customer clicks “add to cart” to the moment the postman delivers their package, AI can facilitate a seamless experience. Eurora’s AI can automate tasks such as HS code allocation, duty and tax calculation, IOSS registration and management, and even the collection of duties from the consignee.
4. AI enhances end-consumers’ experience
“Partnering with Eurora allows us to support our small and medium sized shippers, giving them access to IOSS import validation and HS code automation not readily available to smaller exporters. The ability to communicate in advance to the end consumer the full array of traditionally hidden VAT and duties payable on import, and enable payment upfront, not only reduces costs for the consumer but provides a seamless and accelerated clearing and delivery process on arrival in the import country of delivery.” Tommy Erasmus, CEO, SkyNet Worldwide Express.
Integrating AI into your cross-border trade compliance not only streamlines your operational processes but also enhances your end-consumer experience by eliminating the hassle of paying taxes upon package arrival, improving cost transparency, and reducing delivery times. This can effectively tackle cart abandonment, a major pain point for e-commerce sellers. In fact, studies show that over 40% of US shoppers abandon their carts due to vague or unrealistic tax and duty estimates.
5. AI can adapt to markets worldwide
“A truly global tool needs to understand the differences between markets. There are social and cultural nuances in product descriptions and categorisations that need to be captured and included in our models to ensure Eurora’s outputs are as accurate for senders in Rotterdam as they are for those in Riyadh.” Karl-Oskar Masing, Head of Data Science, Eurora.
AI can understand the differences between various markets worldwide and adapt to their unique characteristics. This is achieved by the analysis of various factors such as culture, language, regulations, and economic trends. Since its founding, Eurora has worked closely with academic institutions throughout Europe to establish best practices around commercial AI and its application to international trade. One such example is Eurora’s ability to ensure accurate output for senders shipping from two different parts of the world.
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Want to learn more about how AI can help your daily cross-border activities? Our white paper shows you how AI can help you:
- Streamline complex regulatory requirements
- Reduce cart abandonment
- Improve customer satisfaction
- Future-proof your business