Graham: Can you provide an overview of what your business does?
Sam: Langdon provides Duty Management software to custom & excise traders in the UK & ROI. Our software has built in integration with both CDS and EMCS and is trusted by some of the most recognised retailers in the UK and Ireland.
Graham: When did you first become engaged with the BWA and what were the key reasons for joining the association?
Sam: Langdon have been members of the BWA since December 2022. As specialists in the customs & excise warehouse software space, there is a lot of value in being part of a community which is so closely aligned with our industry. Several clients were already long-standing members who had spoken highly of the work being done by the BWA.
Graham: What are currently the biggest challenges that the industry is facing?
Sam: Education is a big gap in the market to date which ultimately poses risk to business. Excise warehousing is such an advantage to the industry when used correctly, but when the knowledge isn’t there and mistakes are made it can soon become damaging to a business with financial penalties, loss of vital authorisations, and reputational damage.
Graham: How can these challenges be resolved?
Sam: Offering training and formal qualifications in the excise industry. It has been fantastic to see the BWA & The Institute of Export take the first step and provide a Level 3 Excise practice and procedures. It may be the case than in future such qualifications become a requirement to operate HMRC approved warehouses.
Graham: What innovations can you see coming to the industry in the future?
Sam: The customs and excise industry is poised for significant transformation in the future, driven by advancements in technology, particularly the utilisation of artificial intelligence (AI). There are several areas in which these technologies could contribute.
Customs Classification
AI involvement in customs classification can improve the accuracy and efficiency of identifying tariff classification of goods. Current manual processes are often time-consuming and prone to human error. AI algorithms can analyse large volumes of data and recognise patterns that are not immediately apparent to human operators. This can lead to:
- Improved Accuracy: AI systems can cross-reference vast datasets, including product descriptions, past customs records, and global trade regulations, to ensure goods are classified correctly.
- Faster Processing Times: By automating the classification process, AI can significantly reduce the time required to process shipments, facilitating faster clearance and reducing bottlenecks at customs points.
- Dynamic Adaptation: AI systems can continuously learn and adapt to new products and changing regulations, ensuring ongoing compliance with international trade laws.
Of course, AI is not without its drawbacks. There are product areas which have nuances in their classification which will challenge anyone (human or AI) without experience.
Blockchain for Enhanced Transparency
Blockchain technology offers a secure and immutable ledger for recording transactions. Because of the audit trail requirements, this could be highly beneficial for customs and excise operations. Benefits could include.
- Enhance Transparency: All parties in the supply chain can access a shared, tamper-proof record of transactions, reducing the potential for fraud and corruption.
- Streamline Processes: Smart contracts can automate and verify the fulfilment of customs requirements, such as the payment of duties and taxes, ensuring compliance and speeding up the clearance process.
- Improve Traceability: Blockchain can provide end-to-end visibility of goods as they move through the supply chain, helping to identify and address issues such as counterfeit products or mis-declared goods.
Advanced Data Analytics for Risk Management
The use of advanced data analytics can greatly enhance the ability of customs authorities to manage risk and target inspections more effectively. By analysing large datasets, customs can:
- Identify High-Risk Shipments: Predictive analytics can flag shipments that are more likely to contain prohibited or mis-declared items based on historical data and risk factors.
- Allocate Resources Efficiently: Data-driven insights can help customs authorities prioritise inspections and deploy resources where they are most needed, improving overall operational efficiency.
- Enhance Compliance Monitoring: Continuous monitoring and analysis of trade data can help identify patterns of non-compliance, enabling authorities to take proactive measures to enforce regulations.
Robotic Process Automation (RPA)
RPA can automate repetitive and time-consuming tasks in customs operations, such as data entry, document verification, and report generation. Langdon products already incorporate elements of this, automation of stock receipting can save hours of manual entry each day and reports can be automatically generated and sent to the appropriate team. This can lead to:
- Increased Efficiency: Automation of routine tasks frees up human resources to focus on more complex and value-added activities.
- Reduction in Errors: Automated processes are less prone to errors compared to manual data entry, improving the accuracy of customs documentation.
Scalability: RPA solutions can be scaled up to handle peak periods of high shipment volumes, ensuring consistent performance without the need for additional staff
Thanks to Sam Richardson for taking part in this interview.
For more information, go to: https://langdoncustoms.com/
