What is paperless trade and how to utilize it as a merchant?

What is paperless trade and how to utilize it as a merchant?

When shipping internationally, customs documentation is essential. But what if you could ditch the printer altogether? That’s where paperless trade (PLT), comes in. This modern shipping solution is becoming increasingly popular among e-commerce businesses looking to streamline their cross-border operations.

In this article, we'll break down how paperless customs documents work, which carriers support them, the pros and cons, and what Shopify merchants should know to take advantage of this time-saving option.

What is paperless trade?

Paperless trade allows merchants to submit customs documents electronically instead of attaching physical copies to the parcel. This includes important paperwork like:

  • Commercial invoices
  • Pro forma invoices
  • CN22/CN23 customs declarations

Instead of printing and taping these documents onto the package, they’re uploaded digitally and transmitted directly to the carrier and customs authorities.

This is typically done via your shipping platform or directly through the carrier's API or label generation system. When the package is scanned during pickup or at a sorting hub, the customs documents are already available in the carrier’s system no paper required.

How does paperless trade work?

Here's a simplified overview of how paperless customs documents work in practice:

  1. Shipping label is created using a tool like Packrooster Shipping or the carrier’s own portal.
  2. Customs documents are automatically generated based on the order and product data.
  3. The documents are transmitted electronically to the shipping carrier.
  4. The parcel is picked up, and customs officers access the required documents digitally via the carrier’s system.
  5. Delivery continues as usual without the need for attached paperwork.

Many modern WMS and shipping apps (like Packrooster) can handle this process automatically.

Which shipping carriers support paperless trade?

Not all carriers support paperless customs documentation yet, but many major ones do - especially for business accounts and shipments through platforms that are integrated with their systems.

Common carriers that support paperless trade:

  • DHL Express (Paperless Trade / PLT): One of the earliest adopters. Fully supports electronic customs documents on international shipments.
  • UPS (Paperless Invoice): UPS allows merchants to submit customs paperwork digitally through their API or shipping systems.
  • FedEx (Electronic Trade Documents / ETD): Allows you to upload documents digitally and avoid printing commercial invoices.

Note: Paperless customs documentation is not always available for every destination or shipping method, so it's important to confirm eligibility before using it. If you are using Packrooster Shipping to create the shipment it will automatically give you printable custom documents if paperless trade is not possible.

Pros and cons using paperless customs documentation

Pros:

  • Time-Saving: No need to manually print and attach documents for each international order.
  • Less Paper Waste: More environmentally friendly and reduces your office supply costs.
  • Fewer Mistakes: Automatically generated customs documents reduce human error and mismatched information.
  • Faster Processing: Customs clearance may be quicker since documents are already in the system when the parcel arrives.
  • Sleeker Workflow: Especially useful for merchants using fulfillment centers or dropshipping partners, no physical documents to manage.

Cons:

  • Not supported everywhere: Some countries or carriers may still require physical customs documents.
  • Requires proper setup: Your shipping software or integration needs to support paperless trade and transmit data accurately.
  • Limited for handwritten/custom shipments: If you're not using a digital shipping system, paperless trade won’t be an option.
  • Carrier-specific rules: Each carrier has its own conditions and supported services, which can be confusing.

What Shopify merchants should know

If you're a Shopify merchant looking to optimize international shipping, enabling paperless customs documentation can save time and reduce errors - especially as your order volume grows.

Here's how to get started:

  • Use a shipping app like Packrooster Shipping that supports digital customs declarations.
  • Make sure your product and order data is clean and complete, especially HS codes, product descriptions, and country of origin.
  • Confirm your carrier supports PLT for your shipping destinations.
  • Run a test shipment to ensure customs documents are correctly submitted and received by the carrier.

Paperless customs documents (paperless trade) are a smart solution for modern e-commerce businesses. By digitizing your customs paperwork, you can speed up fulfillment, avoid shipping errors, and make your cross-border workflow more sustainable.

As shipping carriers and technology continue to evolve, we expect paperless trade to become the new standard for international shipping. If you’re not already using it, now's a great time to explore how it can benefit your Shopify store.

Packrooster Shipping

Advanced shipping rates, carrier integrations
and order processing for your Shopify store

Read more →

Printrooster Order Printing

Pre-filter your Shopify orders for printing,
customize order and picking list templates and much more

Read more →