Intelligent Automation for FDI Facilitation: Optimizing Tariff Exemption Processes with OCR And Large Language Models

Fuente: arXiv
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Main Author: Ramli, Muhammad Sukri Bin
Format: Preprint
Published: 2025
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author Ramli, Muhammad Sukri Bin
author_facet Ramli, Muhammad Sukri Bin
contents Tariff exemptions are fundamental to attracting Foreign Direct Investment (FDI) into the manufacturing sector, though the associated administrative processes present areas for optimization for both investing entities and the national tax authority. This paper proposes a conceptual framework to empower tax administration by leveraging a synergistic integration of Optical Character Recognition (OCR) and Large Language Model (LLM) technologies. The proposed system is designed to first utilize OCR for intelligent digitization, precisely extracting data from diverse application documents and key regulatory texts such as tariff orders. Subsequently, the LLM would enhance the capabilities of administrative officers by automating the critical and time-intensive task of verifying submitted HS Tariff Codes for machinery, equipment, and raw materials against official exemption lists. By enhancing the speed and precision of these initial assessments, this AI-driven approach systematically reduces potential for non-alignment and non-optimized exemption utilization, thereby streamlining the investment journey for FDI companies. For the national administration, the benefits include a significant boost in operational capacity, reduced administrative load, and a strengthened control environment, ultimately improving the ease of doing business and solidifying the nation's appeal as a premier destination for high-value manufacturing FDI.
format Preprint
id arxiv_https___arxiv_org_abs_2506_12093
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle Intelligent Automation for FDI Facilitation: Optimizing Tariff Exemption Processes with OCR And Large Language Models
Ramli, Muhammad Sukri Bin
Computers and Society
Artificial Intelligence
General Economics
Economics
Tariff exemptions are fundamental to attracting Foreign Direct Investment (FDI) into the manufacturing sector, though the associated administrative processes present areas for optimization for both investing entities and the national tax authority. This paper proposes a conceptual framework to empower tax administration by leveraging a synergistic integration of Optical Character Recognition (OCR) and Large Language Model (LLM) technologies. The proposed system is designed to first utilize OCR for intelligent digitization, precisely extracting data from diverse application documents and key regulatory texts such as tariff orders. Subsequently, the LLM would enhance the capabilities of administrative officers by automating the critical and time-intensive task of verifying submitted HS Tariff Codes for machinery, equipment, and raw materials against official exemption lists. By enhancing the speed and precision of these initial assessments, this AI-driven approach systematically reduces potential for non-alignment and non-optimized exemption utilization, thereby streamlining the investment journey for FDI companies. For the national administration, the benefits include a significant boost in operational capacity, reduced administrative load, and a strengthened control environment, ultimately improving the ease of doing business and solidifying the nation's appeal as a premier destination for high-value manufacturing FDI.
title Intelligent Automation for FDI Facilitation: Optimizing Tariff Exemption Processes with OCR And Large Language Models
topic Computers and Society
Artificial Intelligence
General Economics
Economics
url https://arxiv.org/abs/2506.12093