UK freight forwarders operate in one of the most challenging customs environments in decades. Post-Brexit regulatory changes and digitisation (from CDS to NCTS5) have raised the bar for compliance, even as global trade pressures demand faster turnaround. The old manual ways of working relying on memory, paper documents, and human effort for every declaration are giving way to a new era.
Forwarders who embrace automation and intelligent software are reaping the rewards in efficiency and accuracy, while those clinging to purely manual processes risk falling behind. At the heart of this shift are two transformative technologies: AI-driven customs classification, regulation compliance, and OCR for customs documents.
Incorporating AI and OCR into your UK trade compliance software strategy isn't just about convenience; it's becoming essential for staying competitive and compliant.
One of the toughest compliance tasks is HS code classification determining the correct tariff code for each product. With over thousands of commodity categories in the Harmonized System and new codes added every five years, classification requires deep expertise. Even veterans can make mistakes, especially when product descriptions are unclear or codes have changed.
This is where AI-powered classification becomes a game changer. Modern machine learning models can interpret product descriptions (even messy or non-standard ones) and suggest the correct HS codes within seconds. The World Customs Organization has even developed a neural network model to support automated classification of goods, underscoring how mainstream this technology is becoming.
Some systems now achieve over 95-98% accuracy in their code recommendations, returning results in ~45 seconds or less, far faster than manual searching.
The other major time sink in customs processing is handling the mountain of paperwork that accompanies every shipment. Commercial invoices, packing lists, certificates of origin, bills of lading forwarders receive these documents for each consignment, often as scans or PDFs via email.
Optical Character Recognition (OCR) technology solves this by literally "reading" documents for you. Advanced OCR systems, enhanced with AI, can parse printed text (and even handwriting or low-quality scans) to pull out structured data in seconds.
Studies show OCR can reduce customs processing times dramatically
OCR doesn't get tired or make copy-paste mistakes like humans
While AI classification and OCR are powerful on their own, the real magic happens when they are integrated into a single, unified trade compliance platform. Think of it as your all-in-one customs cockpit: the AI suggests HS codes, the OCR pulls in all the shipment data, and the platform then seamlessly compiles and submits the declaration to authorities.
OCR instantly extracts all necessary details from commercial invoices and packing lists
AI co-pilot recommends HS codes for each item based on descriptions
System cross-checks items against UK import requirements and alerts to issues
One-click submission directly to HMRC's CDS in the proper format
Immediate confirmation and error alerts for instant resolution
Tasks that used to occupy teams for entire afternoons are now handled in minutes
Smarter classification and data accuracy dramatically reduce customs holds
Many forwarders report operational cost reductions of 50% or more
Staff become orchestrators of a high-tech process, focusing expertise where needed
From 1 April 2025 UK road and rail movements into the EU (and NI, CH, NO) must be reported through the EU's Import Control System 2 (ICS2) Release 3. After a five-month transition, ICS1 is switched off on 1 September 2025, making ICS2 data mandatory for every mode of transport.
| Milestone | Who's Affected | Key Action |
|---|---|---|
| Now July 2025 | UK forwarders filing as house-level declarants | Register EORI in an EU Member State & test ENS connectivity |
| 1 Aug 2025 | All road & rail carriers/forwarders | Final dry-run validation; fix any data-mapping gaps |
| 1 Sep 2025 | Mandatory go-live for road & rail | Full production filing only through ICS2. Non-compliance = shipment refused |
Audit Your Data Sources - Confirm you can collect full HS-6 codes and party IDs from shippers before loading
Adopt an ENS-Ready Platform - Your customs system must create, validate and transmit ENS in XML/EDI
Automate HS Classification - Use AI to suggest HS codes from descriptions, then validate against EU tariff
Integrate With CDS & NCTS5 - Consolidate UK export, transit and EU security data in one flow
Train Ops & Drivers - Ensure everyone knows ENS MRN must travel with the load
The future of customs clearance is here, and it's accessible even to the "little guys" of the freight world. You don't need a Fortune 500 budget to deploy AI and OCR in your operations solutions like Ewanor's AI customs platform are specifically tailored for SMB forwarders, combining affordability with powerful functionality.
Result: Early adopters slash ENS prep time by 70% and have zero ENS rejections in pilot lanes.
Early adopters are already enjoying faster clearances, fewer headaches, and more time to focus on growing their business. There is no reason to be left behind.