TECH & INNOVATION  /  SME

By FedEx | September 21, 2026

Customs compliance has become a strategic priority in today's increasingly complex cross-border trade landscape. As trade regulations evolve and documentation requirements grow more demanding, AI in logistics can help SMEs improve accuracy and reduce risk.

• APAC businesses must adapt to evolving cross-border trade regulations such as customs reforms in the US and EU.
• Incomplete or inaccurate shipment documentation can lead to customs delays, inspections, and costly penalties that impact business operations.
• AI-powered assistants such as FedEx Customs AI can help businesses navigate the complexities of cross-border logistics, backed by trusted customs expertise for more complex scenarios.

International growth is becoming more accessible for small businesses across Asia Pacific (APAC), but expanding across borders also means navigating increasingly complex customs compliance requirements.

E-commerce, digital trade solutions, and more diversified supply chains have made it easier for SMEs in APAC to reach international markets. But as businesses pursue cross-border trade, they must also contend with geopolitical uncertainty, fast-changing tariff policies, increased customs scrutiny, and growing documentation requirements.

A 2026 survey by FedEx found that 64% of APAC businesses that ship consumer products to the US have not yet begun preparing for the updated US Consumer Product Safety Commission (CPSC) e-filing requirements, which will now require information to be submitted at the time of entry. Of those businesses, 28% understand the new requirements but have not yet taken steps to prepare for them, while 18% expect the new regulation to significantly impact their US-bound shipments.

Customs compliance is shifting from routine paperwork to a core part of risk management. If businesses cannot keep up with ever-evolving regulations across fragmented regulatory landscapes, they risk costly penalties, shipment delays, and additional costs that can disrupt operations and hinder growth.

Today, many companies are exploring AI tools to improve efficiency and gain faster insights. As AI becomes increasingly embedded in business operations, could it also help SMEs navigate growing customs complexity?

Customs compliance: A moving target

The global trade landscape is constantly in flux. Customer demands are evolving, regulations are becoming stricter, and changes to import duties remain difficult to predict.

In June 2026, for example, the US proposed additional duties of 10% or 12.5% on products from 60 economies following a US Trade Representative (USTR) investigation into their policies and practices relating to forced-labor imports. These additional duties were subsequently imposed in July 2026, adding another layer of complexity for businesses trading with the US.

Meanwhile, the EU Deforestation Regulation (EUDR) will come into effect by December 2026 (for large and medium-sized businesses) or by June 2027 (for micro and small-sized operators). The regulation requires businesses covered by its scope to demonstrate that relevant products entering Europe are not the result of deforestation or illegal practices. This includes raw materials such as cattle, cocoa, soy, and palm oil.

Sustainability-related trade requirements are becoming more stringent as well. The EU has introduced the Carbon Border Adjustment Mechanism (CBAM), which applies to imported materials such as steel and cement. Businesses must report greenhouse gas emissions annually and purchase CBAM certificates corresponding to the embedded carbon emissions of imported goods.

These regulatory shifts are only the tip of the iceberg. With ongoing geopolitical tensions, changing tariff policies, and evolving export controls, businesses can expect the regulatory environment to continue changing. For APAC businesses, the ability to keep pace with these changes will be important to maintaining compliant and resilient cross-border operations.

From compliance to competitive advantage

Many SMEs view customs compliance as just paperwork. But increasingly, it’s about maintaining accurate and transparent trade data that satisfies a growing number of regulatory requirements.

Customs authorities across the world are accelerating the adoption of digital data to reduce bottlenecks and improve transparency. In response, small businesses need to shift from manual to digital processes to streamline clearance and reduce the risk of costly errors. Inaccuracies can lead to customs clearance delays or additional inspections, resulting in operational disruptions and customer dissatisfaction.

One common reason that international shipments experience delays is incomplete or inaccurate shipment information – ranging from incorrect HS code classifications to erroneous valuation declarations. While seemingly minor, the financial impact of such oversights can be severe. In fact, companies face up to seven-figure sums in overpayments annually due to classification errors and the insufficient use of free trade agreements.

It’s time for businesses to view customs compliance not as an administrative burden, but as a strategic investment in supply chain resilience, risk management, and customer experience. Businesses that build compliance capabilities today will be better positioned to capture opportunities and safeguard against future changes.

Simplifying customs compliance with AI assistants

For SMEs with limited expertise and resources, maintaining compliance across multiple markets can be time-consuming – especially as shipment volumes grow. The good news is that as customs compliance becomes more complex, the software available to help SMEs manage it is also becoming more sophisticated.

AI and automation are transforming cross-border trade management with increasing efficiency and accuracy. Today’s AI solutions can analyze regulatory requirements and calculate import duties in real time, enabling businesses to keep pace with evolving cross-border trade rules across different markets.

AI in customs clearance can also reliably automate shipment classification and documentation, helping SMEs reduce avoidable manual errors and navigate unfamiliar requirements. At FedEx, we’ve developed AI-powered solutions that simplify customs compliance in response to businesses’ evolving needs.

Take Customs AI, an AI assistant accessible via FedEx Ship Manager. Customs AI leverages advanced generative AI technology to streamline documentation for US-bound shipments. This AI assistant can analyze customer inputs in real time, prompt shippers to provide specific item descriptions, and assist them in selecting the correct HTS codes for US import clearance.

Most importantly, the system is continually updated with the latest customs requirements, helping businesses remain compliant in an evolving trade landscape with less time and effort.

Smarter cross-border trade starts with smarter tools

While it’s easy – and understandable – to view customs compliance as a hassle, it’s worth remembering that many of these regulations are designed to support sustainable trade conditions. They set the standard for the kind of cross-border trade we want to see, now and in the future.

With AI in logistics enabling customs automation, SMEs can stay compliant and establish themselves as credible, competitive players in global markets.

At the same time, technology is only part of the equation. Beyond intelligent automation, access to customs expertise remains essential for businesses with unique needs. At FedEx, we understand that customs compliance requires tailored and hands-on support. We remain dedicated to sharing our expertise through initiatives such as webinars, equipping businesses with practical insights and best practices for customs compliance.

With the right combination of technology and expertise, SMEs can turn the complexity of cross-border shipping into the confidence to compete on a global stage.