DPDgroup will use trade compliance company Eurora’s platform to automate the allocation of product classification (HS) codes and compliance with the export control rules applied in the European Union, the UK and the US.
Eurora’s platform is backed by artificial intelligence (AI) and machine learning (ML). Eurora’s AI uses more than 500 million records of training data from real transactions of the world’s largest logistics service providers. The platform can be used by online sellers, marketplaces, logistics and postal companies to automate tax and duty declarations and assign the appropriate HS code.
The companies have stated that the allocation of product classification (HS) codes and export control classification (ECCN) is a pivotal step in the export process. These classifications are needed to prove that the shipper has duly checked all restrictions and license requirements before exporting an item. According to Eurora, its compliance platform processes up to 5,000 requests per second with 98% accuracy. As a result, this process is expected to enable DPDgroup to improve its quality and compliance processes while lowering the costs of customs processing. For their next step, both companies are looking to extend the geographical coverage of export compliance services, namely to the Middle East and Asia.
Eurora recently opened an Innovation and Research Center in Tartu, Estonia, which is focused on AI and ML research as well as the ongoing development of the platform, both to expand its functionality and to futureproof it for clients by ensuring it can be adapted to future legislative changes to international trade. The need to futureproof the platform is highlighted by the European Commission’s plans to introduce new legislation to add product safety and transportation security compliance requirements to cross-border trade. Any specific requirements will have to be proved to have been met before particular goods or products containing certain components are allowed to even leave the warehouse.
Olivier Tsalpatouros, senior director of regulatory and global trade affairs at DPDgroup, said, “DPDgroup, which delivers over 8.4 million parcels worldwide each day, was looking for a solution that would enhance its parcel delivery operations. In a context where product safety and transport security processes are key, and with growing international activity, we always aim to enhance quality and compliance. Using AI and machine learning solutions will help us improve the scalability and reliability of our international operations while paving the way for future opportunities like new customer services, new geography and further automation.”
Marko Lastik, founder and group CEO of Eurora, said, “Eurora and the DPDgroup have been closely working together since the beginning of 2022 to elaborate the rules of different jurisdictions, containing a wide range of classification rules and restrictions that have been ‘learned’ by the Eurora machine. Years of scientific research and developing machine learning capabilities have allowed Eurora to demonstrate that we are trusted by the logistics and postal industry. Eurora’s AI engine can find the most appropriate response from a large amount of data by learning from constantly adding data.”