DPDgroup signs deal with Eurora to automate cross-border trade compliance

DPDgroup has signed a deal with cross-border trade compliance experts Eurora Solutions in a bid to streamline and cut the cost of its customs processing.

The parcels giant will use Eurora's artificial intelligence and machine learning-backed cross-border trade compliance platform to automate the allocation of product classification (HS) codes and compliance with the export control rules applied in the EU, the UK and the US.

The HS code, and an export control classification (ECCN) code, are needed to prove that the shipper has checked all restrictions and license requirements before exporting an item.

Eurora claims that its compliance platform processes up to 5,000 requests per second with 98% accuracy, which it believes provides the highest level of accuracy, speed, and automation available in the market.

The company said: “As there are more than 15,000 10-digit commodity codes in the EU alone, it is impossible to match this speed and cost with manual or hybrid methods, most commonly used today."

As a next step, both companies are looking towards extending the geographical coverage of export compliance services to the Middle East and Asia.

Marko Lastik, founder and Group chief executive 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.”

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Olivier Tsalpatouros, senior director regulatory & global trade affairs at DPDgroup said the company, which delivers over 8.4 million parcels worldwide each day, was looking for a solution that would enhance its parcel delivery operations.

He added: “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 path for future opportunities like new customer services, new geography, and further automation."

Marko Lastik added: “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 AI engine can find the most appropriate response from a large amount of data by learning from constantly adding data.”

Eurora's AI uses over 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.

Eurora is also currently future proofing the platform in preparation for EU plans to introduce new legislation to add product safety and transport security compliance requirements to cross-border trade.

Under the new rules, any specific requirements will have to be proven to have been met before particular goods or products containing certain components are allowed to leave the warehouse.