Imported goods entering the U.S. must be declared to customs to ensure that the appropriate taxes are assessed. This requirement extends to everything, from individual purchases of clothing from international brands to every item imported on a large shipping vessel.
In the realm of commercial importing, the paperwork process is often cumbersome and performed manually. To cope, many large importers develop their in-house solutions or hire customs brokers for assistance. DocUnlock aims to change that by automating the workflow.
DocUnlock is a platform designed for customs brokers, facilitating the completion of essential documents required by importers. By integrating with a customs broker’s email, DocUnlock automatically routes relevant emails and documents to its system. The platform leverages AI to collate necessary unstructured data for filling out the requisite forms, allowing customs brokers to handle the rest.
“We highlight key details for them, significantly enhancing their efficiency and simplifying their work,” stated Sepehr Fakour, co-founder of DocUnlock. “This enables them to concentrate on their core competencies—ensuring compliance with customs regulations and accurate classification—rather than wasting hours on manual data entry.”
Ned Cartmell, Fakour’s co-founder, shared his personal experience with this issue while at Flexport. He recounted the varied attempts to address it, from developing proprietary software to manually troubleshooting and seeking external solutions.
“We certainly improved processes at Flexport, but we fell short of fully resolving the issue,” Cartmell reflected. “This led to an obsession with finding a solution.”
With the rise of AI technology in 2022, Cartmell and Fakour saw a promising opportunity. They engaged with several customs brokers to assess whether their experiences aligned with Cartmell’s at Flexport, and they found a strong consensus.
“Even during our very first meeting on Zoom, the broker was almost pleading with us, saying, ‘Please don’t leave without creating a solution,’” mentioned Fakour. “This was a clear indication that we were onto something significant.”
Founded in 2023, DocUnlock began with a basic version of its product, which was sufficient to attract initial customers, prompting further development. The company has experienced notable growth since its inception, reporting a 100% retention rate with significant customer acquisition driven by referrals.
Recently, the company secured $3 million in pre-seed funding from a variety of venture capital firms, including GTMFund and Barrel Ventures, along with angel investors such as Nicolas Dessaigne and Julien Lemoine, co-founders of Algolia and early Flexport team members.
In 2024, over $4.1 trillion worth of goods were imported into the U.S. Fakour highlighted the vast and diverse customs broker landscape, consisting of thousands of firms across the country, ranging from small local businesses to larger enterprises, alongside brokers from other nations. This presents a substantial and fragmented market for DocUnlock to explore.
DocUnlock aims to automate the repetitive tasks associated with customs brokerage, enabling professionals in the field to leverage their expertise to effectively navigate this ever-evolving landscape.
“This customs process is something that most people are unaware of,” said Cartmell. “For good reason, it’s often behind the scenes, yet it affects numerous transactions. Each time goods enter or exit a country, this complex process unfolds.”
Compiled by Techarena.au.
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