DECO Declarations: The Benefits of Declaration Software

The Netherlands, a hub of distribution. Millions of packages from distant countries flood in annually, destined to reach e-commerce customers via our airports. But before those sneakers or gadgets make their way, a critical step awaits: customs clearance. For shipments up to €150, the Dutch Customs Service’s DECO system is your gateway. But what exactly is DECO, when does your business encounter it, and how do you know when customs software is the right solution?

What is DECO and When Do You Deal with It?

DECO, or Douane E-Commerce, is the Dutch customs electronic declaration system that replaced the VENUE system in July 2021. It handles e-commerce shipments from outside the EU valued up to €150. It’s a smart solution for efficiently processing the growing stream of small packages—from electronics to fashion. DECO uses the Super Reduced Dataset (SRD), which significantly speeds up the process. Software can make a big difference here, but when is the investment worthwhile?

When Does Investing in DECO Declaration Software Pay Off?

Not every business immediately benefits from purchasing DECO software. It depends on your situation, processes, and ambitions. Here we list the key factors to consider.

High Volumes of E-Commerce Shipments

If your business processes hundreds or even thousands of packages from non-EU countries daily, manual declarations are no longer viable. The right software can handle millions of declarations per month, with automatic data validation and integration with systems like the Schiphol-based Cargonaut. Processing a manifest of thousands of declarations can take just minutes with top providers, from data input to clearance.

When to invest? If you handle over 500 declarations per month, the time and error savings start to outweigh the costs.

Complexity of Schemes Like IOSS

The Import One-Stop Shop (IOSS) scheme is designed to streamline processes for e-commerce businesses by collecting VAT at the point of sale, speeding up import processes. However, it requires precise data and accurate DECO registration. Software can automatically link and verify IOSS numbers, seamlessly routing non-IOSS shipments or packages over €150 to the DMS system. Manual IOSS declaration processing is time-consuming and error-prone, risking fines or delays.

When to invest? If you use IOSS or frequently switch between IOSS and non-IOSS shipments, software is essential for compliance.

Need for Integration with Other Systems

Modern customs processes rely on connectivity. Whether it’s your Warehouse Management System (WMS), Transport Management System (TMS), or links to Cargonaut or the NVWA, DECO software often provides ready-to-use APIs and interfaces. This eliminates duplicate work and minimizes errors.

When to invest? If your team manually transfers data between systems or your logistics chain depends on fast data exchange, integrated software is a no-brainer.

Error Reduction and Compliance

Since the Dutch customs transition to DMS 4.0, the responsibility for accurate declarations lies entirely with the declarant. Customs no longer corrects errors but issues adjustment requests, causing delays. Advanced DECO software validates data before submission, flagging errors at the package, declaration, or manifest level. This prevents rejections, fines, and unhappy customers.

When to invest? If you frequently receive correction requests or struggle with complex commodity codes (e.g., excise goods), software is critical for risk management.

Scalability During Peak Volumes

E-commerce sees peak moments like Black Friday or the holidays. Cloud-based, scalable software ensures you can handle large volumes without extra costs or resources. This is vital for businesses aiming to grow without constantly tweaking processes.

When to invest? If your current processes buckle under peak loads or you plan to expand into new markets, software provides the flexibility to scale.

What Are the Benefits of DECO Declaration Software?

Investing in DECO software isn’t just about cost savings—it offers strategic advantages:

• Time Savings: Automation reduces declaration processing from minutes to seconds.
• Fewer Errors: Integrated validation tools catch incomplete or incorrect data.
• Real-Time Insights: Track the status of all your declarations.
• Customer Satisfaction: Faster clearance means quicker delivery to end customers.
• Future-Proofing: Software providers keep you compliant with new regulations, like the shift from AGS to DMS.

What Are the Costs and Risks?

Naturally, declaration software comes with a price tag. Costs vary from license models to SaaS subscriptions, depending on the provider and level of customization. For smaller businesses with low volumes, this can be a barrier. Implementation also requires time and training, and there’s a risk the software may not fully align with existing processes. However, a good provider offers integration and training support, minimizing these risks.

How to Choose the Right Software for Your DECO Declarations?

Not all DECO software is created equal. When selecting a solution, focus on these key features:

• User-Friendliness: An intuitive interface reduces training time.
• Integration Options: Ensure compatibility with your WMS, ERP, or other systems.
• Scalability: A cloud-based solution provides flexibility during growth and peak loads.
• Support and Updates: Choose a provider with strong customer service and regular updates to stay compliant.
• Validation: Automatic data checks minimize the risk of declaration rejections.
• Efficiency: If a DECO declaration doesn’t meet requirements, the software automatically creates a DMS declaration, ensuring smooth operations.
• Speed: Process large volumes of declarations in minimal time.
• Cost Structure: Pick a model that fits your budget and volume, like pay-per-use or a fixed subscription.

Conclusion

Investing in DECO declaration software isn’t a luxury—it’s a necessity for businesses aiming to excel in the fast-growing e-commerce market. If you deal with high volumes, complex schemes like IOSS, or need seamless integration and scalability, switching to specialized software is a logical step. It saves time, reduces errors, ensures compliance, and delights customers with faster deliveries.

For smaller players with low volumes, manual processing might still suffice, but as you grow, software becomes a strategic investment. Take the time to map your needs, compare providers, and step toward a more efficient future. In the world of e-commerce customs, standing still means falling behind!