Digital Day Dawning in Export Documentation



Get set for even more-competitive, satisfying and less-frustrating global trade! In just a few years, simplified, standardized, codified and digitized export documents could commonly be forwarded electronically before the arrival of related shipments at overseas entrepots. This pre-arrival approach will help overseas customs officials decide which shipments to inspect closely and which-presumably the majority, the so-called ordinary goods-to accept quickly.

At the same time, exporters, importers and customs brokers will use the internet to accelerate the creation-with far fewer delay-causing errors-of digitized trade documents to be forwarded electronically. The happy result of both developments will be that global traders will be more competitive with local sources because delivery times should be cut, perhaps by days, according to Bob Carr, vice president, international, for Roadway Express.

When will this wonderful little-or-no-reliance-on-paper nirvana ensue? None of the experts are willing to hazard a prediction. But slowly the trading nations, led by the G7 plus Australia, are chugging ahead. There's already substantial progress using bar codes and reliance on electronic transmission of pre-arrival export documentation by faxing or scanning in of paper documents. And exporters can now obtain needed forms on the internet that can be completed on screen then printed out. For instance, Burlington Air Express (BAX) will not only offer these forms on its web site, but "ship to" and "invoice to" addresses of important overseas recipients will be stored so that these critical fields are re-entered without error each time documents are created on screen, according to Mitch Lininger, BAX's business system analyst.

On the import side, customs brokers and high-volume, self-directed importers can now obtain over the internet all the many documents needed to import into the US from Smartborders (www.smartborders.

com), an application service provider. According to CEO Nicholas Quarantillo, those who use his service can slash the effort needed to prepare import documents for submission to the US Customs' Automated Broker Interface by as much as 70%.

Carrier Charges Down?

Naturally, the carriers favor digitized/standardized document creation and transmission to Customs' "Automated Export System." Any process that speeds shipments through customs cuts their costs. And when carriers' costs go down, shippers should expect lower transportation charges. But don't hold your breath waiting for this welcome bonus from digitalization. The carriers have spent so many millions setting up and testing their support systems for digitalization that they claim they need to recoup this investment before they can pass on the benefits of digitalization.

Following the US's lead, other nations are instituting digitalization. Canada, for example, has set up its Pre-Arrival Review System (PARS). Documentation forwarded in digital form arrives ahead of shipments in time for Canadian Customs to review it. As a result, there's only spot checking of shipments, with some 95% to 96% entering without inspection.

On the other hand, the third participant in NAFTA, Mexico, is reportedly dragging its feet when it comes to digitalization. Mexican customs officers still inspect most shipments, checking for such matters as correctly listed nation of origin. But the Mexican customs brokers do accept documents that are faxed or scanned in before arrival of the related shipments. To speed exports to Mexico, Roadway Express offers the complete set of required Mexican importation forms in both English and Spanish on its web site, The forms can be printed out or completed on screen before printing.

Much progress has been made in the past to speed international trade by eliminating paperwork. Now we are moving steadily towards a new era of nearly paperless trade documentation, especially among the industrialized nations.

Mandell is an international business writer and consultant based in New York.

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