Following this partnership, DPDgroup will leverage Eurora’s AI/ML-backed platform to automate the allocation of product classification (HS) codes and compliance with the export control rules applied in the European Union, the United Kingdom, and the United States.
Eurora’s proprietary AI/ML-based platform automates tax, compliance, and customs services. It assigns ecommerce products an appropriate HS code, calculates the applicable VAT and duty amounts, and automatically creates electronic declarations for EU duties and taxes via API integration.
Product classification (HS) codes and export control classification (ECCN) codes prove that the shipper has thoroughly checked all restrictions and license requirements before exporting an item, which is why their allocation is a very important step in the export process.
According to the official press release, the compliance platform offered by Eurora is able to process up to 5,000 requests per second with 98% accuracy. Moreover, Eurora's AI uses over 500 million records of training data from real transactions of the world's largest logistics service providers. The platform is aimed at online sellers, marketplaces, logistics and postal companies that can leverage its capabilities to automate tax and duty declarations and assign the appropriate HS code.
Eurora’s Innovation and Research Centre in Tartu, Estonia is working on the ongoing development of the platform while focusing on AI/ML research. These efforts ensure that the platform would be able to adapt quickly to future legislative changes to international trade.
According to the official press release, the European Commission has plans to introduce new legislation to add product safety and transport security compliance requirements to cross-border trade.
This means that DPDgroup and other similar companies will need to provide proof of meeting the new specific requirements before particular goods or products containing certain components are allowed to even leave the warehouse. The need to future-proof Eurora’s platform becomes even more important in this context.
In May 2022, Eurora has secured USD 40 million in funding for geographical expansion in the UK, the US, and the Middle East. Apart from expanding into these new markets, the company will also use the funds to improve product development and potential add-on acquisitions.
As the EU ended the EUR 22 import VAT exemption in July 2021, new trading regulations between the EU and the rest of the world gradually came into effect.
As merchants and logistics operators from the UK, the US, China, and the rest of the world are having issues complying with the regulations, Eurora aims to step in and provide software-based solutions that can help handle the cross-border packages affected by the new changes.
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