Use cases for Optical Character Recognition in international trade

The following represent some of the use cases of OCR technology that can streamline international trade transactions:

1. Invoice processing: OCR technology can be used to extract data from invoices, such as the invoice number, date, description of goods, and amount due. This eliminates the need for manual data entry, which is time-consuming and prone to errors. Additionally, it can be used to detect fraudulent invoices by comparing the data on the invoice with other documents such as purchase orders and shipping documents.

2. Customs clearance: OCR technology can be used to read shipping documents and customs declarations, making it easier for customs officials to process shipments quickly and accurately. This reduces the time it takes to clear goods through customs, which can help businesses save money on storage and transportation costs. Additionally, OCR technology can be used to verify the authenticity of shipping documents by comparing them against a database of known legitimate documents. This helps to prevent the use of counterfeit or forged documents in customs clearance processes.

3. Shipping labels: OCR technology can extract important information from shipping labels, such as the recipient’s name and address, package weight, and tracking number. The data extracted from shipping labels can be automatically added to a database or shipping system for easy tracking and analysis of the packages. This streamlines the process for logistics companies to track packages, ensuring proper identification and routing of shipments and reducing the likelihood of delays or loss.

4. Compliance monitoring: OCR technology can be used to scan trade documents (such as invoices, bills of lading, and certificates of origin) for keywords or phrases that indicate noncompliance with AML and/ or customs regulations by comparing the extracted data against various watch lists and databases of sanctioned individuals or entities. The data can then be processed using AI and natural language processing technology to identify high-risk countries, individuals, or entities involved in a trade transaction.

5. Product catalogues: Businesses can use OCR to extract text from product catalogues and create searchable catalogues. This would allow customers to compare products from multiple international suppliers in terms of quality, specifications, compatibility, and pricing, helping businesses make informed decisions about their purchases and suppliers.

6. Language translation: OCR technology can assist businesses in handling trade documents in different languages by providing language translation capabilities. This usually simplifies the process of conducting trade across various countries.