Customs Window – using AI to simplify customs declarations and compliance

Brexit has thrown many issues into the spotlight, but none more so than the issue of customs declarations and compliance – a time-consuming and costly headache for companies that haven’t had to deal with customs before.

Combining decades of experience in the industry with a smart software system that automates the process, Customs Window is aiming to help clients successfully navigate customs declarations and compliance with minimal training.

Now, having already attracted investment from angel investors and Enterprise Ireland, the company has embarked on its first round with EIIS.

There are many other advantages to Customs Window’s software system, said Brian Murphy, co-founder and chief operating officer of Customs Window: “We have developed a customs declaration and compliance system to automate customs datasets for sending to customs authorities.”

The system has advanced analytics and reporting capabilities for clients’ data, and includes a simplified bulk upload system for managing large datasets. It manages the compliance and audit trail of a client’s data seamlessly.

“Another important consideration is that our system is developed on an open API platform. Because of this, we believe that our system will allow clients to access much more data related to their import/export supply chains than current systems,” he explained.

Established in June 2022 by three initial founders, Customs Window’s innovations and business model benefits from a wealth and breadth of experience. “The three of us have a broad range of skills, from commercial and financial to customs and software development,” Murphy said. “We believe that this mix puts us in a strong position to execute the opportunity that we see.”

Adding to this expertise is the fact that the company is based in NexusUCD to partner with CeADAR, a not-for profit centre of innovation and applied R&D in AI, machine learning and data analytics. CeADAR is the European Digital Innovation Hub for AI in Ireland and offers support to companies from all over Ireland who are at the early stage of their AI journey.

Our technology can adapt declaration forms depending on use case, and highlight and correct issues before they can happen

“We partner with CeADAR to develop machine learning and AI algorithms on the system. Our technology can adapt declaration forms depending on use case, and highlight and correct issues before they can happen,” said Murphy. “From a data analytics point of view and a compliance point of view, we are trialling the machine learning aspects of our system.”

Having worked in the area of customs compliance for more than 20 years, including training and consultancy, Murphy has seen first-hand how expensive customs compliance can be, even in training staff.

“We’re addressing a market that already exists, but it’s also a growing market,” explained Murphy. “Ireland’s declarations have gone from 1.7 million in 2019 to 43 million in 2022. This has been driven mainly by Brexit and e-commerce declarations.”

Customs responsibilities are becoming more complex, with more data and more details required than ever before. Customs Window manages those changes and those rules, and makes those cross-border rules more transparent for traders.

“Quite simply, this system takes the complexity out of the customs process. What many people forget is that your compliance obligations with customs live long after your goods have been delivered, so for many years afterwards you still have a compliance risk for the data that you have submitted,” Murphy said.

“We automate much of that compliance. Many of the rules are binary, meaning they are set, so they can be automated; our system protects those customs datasets through this automation.”

Not surprisingly, this simplification process has a positive effect on a company’s time and expenses. Murphy said: “Companies can also enjoy significant savings on staff training costs, because the process has been simplified so much.

“As I’m involved in customs training myself, I know that these costs can be significant and the attrition rate in a company can be quite high too. Offering staff a more simplified and easier system could help significantly with these issues.”

While there are other players in the market, Murphy believes that Customs Window’s system offers more than just declarations.

“We believe our system offering is broader than our current competitors’. Clients have access to more databases to check the integrity of their data, for example. Our system is more than a customs declaration system; it manages more of a customer’s cross-border responsibilities than simply declarations.

Unique reporting

“Our unique reporting and data analytics function allows clients to get more from their datasets, especially in the e-commerce market, which we are also focusing on. This system can manage large e-commerce data sets very, very well; in fact, we do better with large data sets with our initial customers who are large e-commerce and enterprise customers.”

With Brexit and the growth in e-commerce putting the issue of customs compliance in sharp focus, now is most definitely the time for Customs Window to develop and grow as a company.

“Brexit has boosted the awareness of customs. In part we were set up as a response to Brexit, but also in response to a lack of compliance in the area of customs. Our system seeks to address the compliance risk that companies face when dealing with customs authorities.”

Having previously been awarded a €100,000 Pre-Seed Start Fund (PSSF) investment from Enterprise Ireland, along with some early angel investment, the company identified the EIIS programme as the ideal next step to help them grow.

“My co-founder and chief executive, Johnny Dunne, is a chartered accountant and has a lot of experience of helping companies and clients prepare themselves for investment. We put a lot of time into ensuring our company is fully EIIS compliant and offers a unique early-stage investment with real growth potential,” said Murphy.

“This is our first EIIS offering, so investors do qualify for the full 40 per cent tax relief until the end of 2023. There’s also no entry or exit fee for investors and no cap on returns. We’re looking potentially for two tranches of investment, one in 2023 and one in 2024 matched by Enterprise Ireland.”