Certificates of Origin (CoO) are one of the most important documents used in international trade in today's global economic order. This document is crucial not only for proving the origin of products, but also for companies that need to look up various guidelines for international trade to ensure that no regulations are violated and that there are no unnecessary delays. However, at the same time, there are issues with obtaining and managing certificates of origin, such as paperwork, delays in signing and lack of document tracking.
As companies look for ways to improve their bottom line to stay relevant in an intense industry, addressing these issues is paramount. This article goes a step further to understand the intricacies of the CoO process. It describes how our approach, developed with insights from our GTS expert Robert Wieczorek and AI specialist Dr. Felix Aller, would optimize the document movement to create a better and more compliant commerce experience.
What is a Certificate of Origin?
A Certificate of Origin (CoO) is an important document in international trade as it confirms the place of origin of a product. This document is often required by the customs authorities of importing countries to determine tariff treatment and ensure compliance with trade agreements. There are two types of CoOs: preferential and non-preferential certificates, which have different functions depending on trade legislation and agreements between countries. Preferential CoOs can, for example, grant reduced tariffs or other benefits under certain trade agreements, while non-preferential certificates only certify the origin of the goods without granting preferential treatment. For companies involved in international trade, it is important to understand the intricacies of these certificates. Inaccuracies or delays in obtaining a CoO can lead to heavy penalties and disruptions in the supply chain.
Challenges in the CoO process
Managing the Certificate of Origin (CoO) process raises several issues that can limit the efficiency of international trade. One of the biggest challenges is the amount of work required to manage documentation, which often leads to errors and inconsistencies that hinder compliance. The need for detailed documentation can overwhelm teams and divert attention from important tasks. In addition, the approval process for CoOs can be time-consuming, leading to delays that impact delivery dates and customer satisfaction.
Many companies also lack visibility into the status of their CoO documents, making it difficult to track development and resolve issues in a timely manner. In addition, existing systems often lack features that allow for better integration of suppliers into the CoO process, leading to fragmented communication and inefficiencies. As regulations and trade agreements evolve, it becomes increasingly difficult to ensure compliance, increasing the possibility of penalties for non-compliance. These issues highlight the urgent need for improved processes and solutions that enable a seamless and efficient CoO workflow.
Why our approach is revolutionary
Traditional processes often fail due to complex layouts, inconsistent data and multiple formats. They are usually unable to understand the semantic content and relationships within documents. In contrast, our solution can understand and extract relevant information from any human-readable document, regardless of its format. This ensures high accuracy and efficiency, eliminating the need for manual data entry and significantly reducing errors.
While our approach is particularly effective for the Certificate of Origin (CoO) process, it is not limited to this use case. Our AI-driven approach can be applied to any process that requires manual data extraction from documents. This versatility enables organizations to streamline document-intensive workflows, reduce operational costs and improve overall efficiency.
In addition, our solution fits seamlessly into existing system landscapes. It can be integrated into any backend system, whether SAP ECC, S/4HANA or non-SAP systems, regardless of deployment options.
Advantages of cbs AID
The implementation of our Certificate of Origin (CoO) solution offers several key benefits:
- Increased Efficiency: By automating document capture and approval, our solution significantly reduces processing times, enabling faster processing and minimizing workflow bottlenecks.
- Enhanced Accuracy: AI-driven data extraction capability accurately captures key information from supplier declarations, eliminating the need for manual data entry and reducing the risk of errors that can lead to compliance issues
- Improved Collaboration: Our platform enables suppliers to engage directly in the CoO process, shifting some of the workload from internal teams to suppliers. This promotes better collaboration and communication and streamlines the entire process.
- Greater Visibility: Real-time tracking capabilities give organizations a comprehensive view of their document flow, allowing for proactive management and quick resolution of potential issues.
- Cost Savings: By reducing manual labor and improving operational efficiency, our solution contributes to significant cost savings, allowing companies to use their resources more effectively.
- Enhanced Compliance: Our solution ensures compliance with evolving international trade regulations, reduces the risk of penalties and promotes regulatory confidence.
Companies can use our technology to streamline their CoO processes, reduce operational costs and improve collaboration with suppliers, resulting in more effective and compliant international trade operations. Find more details in our cbs AID solution
Summary of the solution
cbs’ generative AI solution revolutionizes the processing of complex documents, offering significant time and cost savings while maintaining high accuracy and stability. This innovative approach not only addresses current challenges, but also sets the stage for future advances in document processing technology.
The Certificate of Origin (CoO) process, a critical element of international trade, presents numerous challenges that can hinder efficiency and compliance. By using cbs AID, companies can optimize their CoO workflows, significantly reduce manual workload and improve collaboration with suppliers. The integration of AI-driven data extraction and real-time tracking improves accuracy and transparency, enabling companies to comply with ever-evolving trade regulations.
