docunlock: Solving Customs Bottlenecks

The Challenges of U.S. Customs Declaration

All merchandise entering the United States requires a declaration to U.S. customs authorities. This is essential for the accurate assessment and collection of applicable taxes. The requirement extends to all shipments, from individual consumer purchases from international retailers to the contents of large cargo containers.

Streamlining Commercial Importing with Automation

For businesses engaged in commercial importing, completing the necessary documentation is often a laborious and manual process. Consequently, many large-scale importers choose to either develop in-house solutions or engage the services of a customs broker to manage this task. DocUnlock aims to revolutionize this process through automation.

How DocUnlock Works

DocUnlock functions as a platform designed to assist customs brokers in efficiently completing the documentation required by importers. The system integrates directly with a broker’s email system. It automatically forwards pertinent emails and associated documents to the DocUnlock platform.

Utilizing AI technology, DocUnlock aggregates the necessary data, even when it’s unstructured, to populate the required forms. Brokers then leverage their expertise to finalize the process.

Improving Broker Efficiency

“Our goal is to highlight key details for brokers and significantly improve their efficiency,” explained Sepehr Fakour, co-founder of DocUnlock. “This allows them to concentrate on applying their specialized knowledge to ensure compliance with customs regulations and accurate classification, rather than spending countless hours on manual data entry.”

The Genesis of DocUnlock

Ned Cartmell, Fakour’s co-founder, shared that his firsthand experience at Flexport revealed the complexities of this issue. He noted that previous attempts to resolve the problem involved building proprietary software, employing manual labor, and exploring external solutions.

“While we achieved some improvements at Flexport, we fell short of the complete elimination of the issue that we had anticipated,” Cartmell stated. “This realization sparked a deep interest in finding a more effective solution.”

Recognizing the Opportunity with AI

The emergence of advanced AI capabilities in 2022 presented Cartmell and Fakour with a promising opportunity. They engaged with numerous customs brokers to validate their understanding of the challenges. The feedback they received overwhelmingly confirmed the issues Cartmell had observed.

“One broker, during a video call, expressed an urgent plea for a solution, emphasizing the critical need for assistance,” Fakour recalled. “This strong response served as a powerful validation of our concept.”

Growth and Validation

DocUnlock was established in 2023, initially with a basic version of the product. This prototype proved sufficient to attract initial customers, prompting further development. Since then, the company has experienced substantial growth.

DocUnlock has maintained a 100% customer retention rate and is experiencing significant growth through referrals, though specific customer numbers were not disclosed.

Recent Funding

The company recently secured $3 million in pre-seed funding. This investment came from a combination of venture capital firms, including GTMFund and Barrel Ventures, as well as angel investors. These included Nicolas Dessaigne and Julien Lemoine, the founders of Algolia – Fakour’s previous employer – and early employees of Flexport.

A Large and Fragmented Market

In 2024 alone, the value of goods imported into the U.S. exceeded $4.1 trillion. Fakour highlighted the expansive nature of the customs broker market. It encompasses thousands of companies, ranging from small, family-owned businesses to larger organizations, both within the U.S. and internationally. This presents a considerable, yet dispersed, market for DocUnlock to address.

Focusing on Expertise

DocUnlock’s objective is to automate the repetitive tasks associated with a customs broker’s role. This will enable them to focus on utilizing their specialized knowledge to navigate the complexities of this ever-evolving field.

The Hidden Complexity of Global Trade

“The customs process is largely unknown to the general public,” Cartmell observed. “And understandably so, as it operates behind the scenes, yet it impacts every transaction involving the movement of goods across international borders.”