2.3 Using Optical Character Recognition to streamline international trade

By digitising critical trade documents such as invoices and bills of lading using OCR technology, traders can process their documents faster, reduce errors, and save costs.

Traditional paper-based trade system

One of the difficulties related to international trade is the large volume of paper documents that make up much of the information flow between the different parties, including various documents such as invoices, bills of lading, certificates of origin, and customs declarations.

Nevertheless, relying on paper documents in international trade has drawbacks, including the cost and time required to prepare, transmit, and check these documents by customs officials and traders. Additionally, paper documents are prone to errors and fraud due to the complexity of trade transactions and the number of parties involved. Therefore, technology needs to be employed to streamline trade by creating digital ecosystems that reduce costs and increase efficiency by replacing paper with digital data flows.

Potential benefits of Optical Character Recognition for international trade

Optical Character Recognition (OCR) is a technology that has the potential to revolutionise the way businesses operate in the digital era. The OCR technology allows paper documents to be scanned and converted into digital formats.

OCR digitises paper documents so that they can be electronically edited, searched for, and used in other digital processes. Documents processed with the OCR solution offer the users recognition of characters, or entire texts and the possibility to select data contained in the document based on keywords. OCR technology has been widely used in various fields, including healthcare, finance, and legal services. However, one field that has greatly benefited from OCR is international trade.

One of the main benefits of using OCR in international trade is increased efficiency and accuracy. OCR can scan large volumes of documents quickly and accurately, meaning traders can process their documents faster, reducing shipment delays and improving supply chain management. This technology also eliminates the risk of human error in data entry, resulting in more accurate and reliable information. Furthermore, by automating the data entry process, employees are free to execute more critical tasks that require human judgment. OCR can help reduce costs associated with international trade transactions by digitising trade documents, eliminating the need for physical storage space for paper-based documents. It also reduces the printing costs of producing multiple copies of paper-based documents. Moreover, by reducing the need for manual data entry, this technology can help reduce labour costs and improve the overall cost structure for business entities.