Transparency

Exactly what the AI does —
and what it doesn't

Ops managers are right to be skeptical of LLMs in compliance workflows. Here's the full picture: how validation actually works, what CanalClear prepares vs. submits, where liability sits, and how your data is protected.

No marketing language. Every claim on this page is either verifiable or explicitly scoped.

Rules-based validation,
not an LLM making judgment calls

The core compliance engine is deterministic — every check is a defined rule against a published regulation. The system doesn't "decide" whether your filing is valid; it executes a fixed rule set and returns pass/fail for each check.

Where LLMs are used — and where they're not

LLMs (large language models) are used only for document extraction: reading uploaded PDFs (certificates, crew lists, cargo manifests) and converting them to structured data. Once data is extracted, validation is 100% deterministic rule execution. The AI never makes compliance judgments.

📄
Input

Your Document

PDF upload or form entry

🔍
OCR / Extraction

LLM Extraction

Reads PDF → structured fields

LLM used here only
⚙️
Validation

Rules Engine

Deterministic checks against regulation

Output

Compliance Report

Pass/fail per check + remediation

Regulation sources

All validation rules are derived from published authority regulations: Panama Canal Authority (ACP) VUMPA/PCSOPEP requirements, Suez Canal Authority (SCA) pre-arrival notifications, Kanuni Directive on Government Measures (KDGM) for the Turkish Straits, and Maritime and Port Authority (MPA) STRAITREP requirements for Malacca. Rules are reviewed and updated when authorities publish amendments.

Validation checks by waterway

Below is a representative subset of the rule set for each waterway. Not exhaustive — the full rule set runs deeper — but representative of the type and specificity of checks applied.

🇵🇦 Panama Canal — VUMPA Pre-Arrival (ACP)

Checks sourced from ACP VUMPA regulations and the Admeasurement Manual.

Check Category Rule
IMO number formatFormatMust be 7 digits, prefix "IMO" optional
GT / NT consistencyConsistencyNT must be ≤ 72% of GT per ACP admeasurement rules
LOA within locks limitRegulatoryMax 366m for Neopanamax, 294m for original locks
Beam within locks limitRegulatoryMax 49m beam for Neopanamax lane
Draft vs. maximum allowableRegulatoryCannot exceed current maximum allowable draft per ACP notice
PCSOPEP certificate validityCertificateMust be current; expiry date in past = fail
ISPS Declaration presentCertificateRequired for all commercial vessels
Crew list completenessFormatAll crew entries must include name, rank, nationality, passport/seaman's book
Hazmat / DG declarationRegulatoryIMDG class, UN number, stowage plan required if DG cargo aboard
Pre-arrival notice windowDeadlineVUMPA submission ≥ 96 hours before arrival at Cristóbal or Balboa
Flag state code validityFormatMust match ISO 3166-1 alpha-2 registered flag states
Vessel type classificationConsistencyType code must match ACP vessel type registry

🇪🇬 Suez Canal — SCA Pre-Arrival Notification

Checks sourced from Suez Canal Authority transit requirements and ISPS Port Facility documentation.

Check Category Rule
SCNT tonnage calculationConsistencySCNT must align with stated GT/NT using SCA admeasurement formula
ISPS security level declarationCertificateSecurity level 1/2/3 must be declared; level 2+ requires additional docs
Last 10 ports of callFormatPort name, LOCODE, arrival/departure dates — all fields required
Suez Canal registered agentRegulatoryAgent must hold valid SCA-registered agent status
Pre-arrival windowDeadlineNotification ≥ 72 hours before arrival at Port Said or Suez
Convoy booking slotRegulatoryNorthbound and southbound convoys operate on fixed schedule; slot must be confirmed
Vessel dimensions vs. channel limitsRegulatoryMax draft 20.1m laden; beam restrictions for simultaneous transit

🇹🇷 Bosporus / Turkish Straits — SP-1 Pre-Arrival (KDGM)

Checks sourced from the Kanuni Directive on Government Measures (KDGM) and the Turkish Maritime Organization.

Check Category Rule
SP-1 submission windowDeadlineRequired ≥ 24 hours before entry into the Turkish Straits
Montreux Convention classificationRegulatoryVessel class (warship, tanker, other) determines applicable rules
DG cargo declaration (tankers)RegulatoryAll hazardous cargo must be declared per KDGM Article 24
Pilot booking statusCertificatePilotage not compulsory but booking confirms priority transit
Vessel LOA vs. straits limitRegulatoryVessels >200m require 24h advance daylight transit request
VHF watch declarationFormatContinuous watch on VHF channel 16 mandatory; declaration required

🇲🇾 Strait of Malacca — STRAITREP / VTIS (MPA)

Checks sourced from MPA STRAITREP requirements and the Traffic Separation Scheme (TSS) for the Straits of Malacca and Singapore.

Check Category Rule
STRAITREP report submissionDeadlineRequired for vessels ≥300 GT; submit on entering STRAITREP zone
VHF / VTIS communication planFormatVTIS contact protocol and VHF channel must be declared
Draft vs. route depth constraintsRegulatoryDeep-draught vessels must transit via precautionary areas
ISPS security declarationCertificateISPS certificate and current security level required
Pilotage requirement checkRegulatoryCompulsory pilotage applies in certain TSS zones by flag state treaty
MARPOL Annex I complianceCertificateTankers must carry valid IOPP certificate; expires = immediate fail
How a validation result looks in practice

Each filing produces a compliance score (0–100) and a per-check result list. Failures include the specific field, the rule violated, the regulation source, and a remediation suggestion. The validator does not produce vague warnings — it produces actionable, traceable results.

# Sample validation output — Panama VUMPA pre-arrival
# Compliance score: 73/100 — 3 issues found
 
✓ IMO format valid (IMO 9412440)
✓ GT/NT ratio within ACP admeasurement limits (39,906 / 27,934)
✓ LOA 229m — within Neopanamax lock limit (366m)
✗ PCSOPEP certificate expired — expiry 2024-11-15 (today 2026-05-13)
→ Action: Upload renewed PCSOPEP certificate before filing
→ Source: ACP Regulations, Section 4.2.3
⚠ Pre-arrival deadline: 18h remaining of required 96h window
→ Action: Submit VUMPA immediately to avoid deadline breach
✗ Crew list incomplete — 2 crew entries missing passport number
→ Action: Crew list lines 14, 17 require passport/seaman's book number

Preparation, not submission

This is the most important distinction to understand before adopting CanalClear. The compliance workflow has two phases. CanalClear owns the first. You or your agent owns the second.

CanalClear prepares

Validates every field against authority rules, catches errors and omissions before submission, tracks regulatory deadlines per waterway, generates a submission-ready document package, and logs all validation history for your audit trail.

Your agent submits

Your licensed ship agent (ACP-registered for Panama, SCA-registered for Suez) takes the validated package and submits it through the official authority portal. CanalClear ensures the package is right before they hit send.

The workflow in practice

Here's the sequence from vessel data to cleared filing:

1. Input vessel data (manual entry or TMS import)
CanalClear
2. Upload certificates (OCR extracts structured data)
CanalClear
3. Rules engine validates all fields — errors surfaced instantly
CanalClear
4. Operator reviews results and resolves flagged issues
You
5. Submission-ready package generated (PDF + structured data)
CanalClear
6. Agent submits to authority portal (ACP / SCA / KDGM / MPA)
Licensed Agent
On direct portal submission

CanalClear does not currently submit directly to authority portals on your behalf. Direct submission integration with ACP and SCA is on the product roadmap — if this matters for your operation, join the Direct Filing waitlist. Until then: the validated package is ready to hand to your agent the moment validation passes.

What CanalClear doesn't do

Ambiguity about scope is how compliance software earns a bad reputation. These are hard boundaries, not small print.

Hard limits — not scope creep, not "future roadmap"

These are structural constraints of how canal compliance works legally, not product gaps we're planning to close.

CanalClear vs. a traditional ship agent — scope comparison

Capability CanalClear Licensed Ship Agent
Pre-filing validation (format, rules, deadlines) ✓ Yes — deterministic rule engine ◐ Varies — manual review, error-prone
Deadline tracking and alerts ✓ Yes — automated per transit ◐ Varies — depends on agent SOP
Certificate expiry monitoring ✓ Yes — all uploaded certificates ◐ Some — not systematic
Multi-vessel fleet view ✓ Yes — fleet dashboard + compliance badges ✗ No — per-transit, not fleet-level
Submit to ACP / SCA portal ✗ Not yet — roadmap item ✓ Yes — licensed to submit
Legal agent of record ✗ No — not a licensed agent ✓ Yes — legally required role
Legal advice on transit regulations ✗ No — not legal counsel ◐ Some — depends on firm
Audit trail and compliance history ✓ Yes — immutable filing audit log ✗ No — usually email threads

Where your data lives
and who can see it

Vessel filing data is sensitive. Here's exactly what we store, where it goes, and who has access.

Encryption

All data at rest uses AES-256-GCM encryption. All connections require TLS 1.2 or higher. Suez Canal credentials are separately encrypted at the field level — not just at the database layer.

Data residency

Primary database: Neon PostgreSQL on AWS us-east-1 (Northern Virginia, USA). File storage (PDFs, exports): Cloudflare R2, US region. Payment data: Stripe (PCI DSS Level 1, under Stripe's own privacy policy).

Access control

Role-based access (RBAC) with a 6-state approval workflow for team accounts. Filing data is scoped to your organisation — CanalClear staff do not access your filing data unless you open a support request that requires it. Audit trail logs all access.

Retention

Active filing data retained while your account is active. Deleted accounts: filing data purged within 30 days. Soft-deleted filings removed within 90 days. Backup data follows the same retention schedule.

Compliance certifications — current status

We don't claim certifications we haven't completed. Here's the honest state:

Render.com infrastructure — SOC 2 Type II certified
Live
AES-256-GCM at rest + TLS 1.2+ in transit
Live
RBAC + 6-state approval workflow
Live
Immutable filing audit log
Live
CanalClear SOC 2 Type II audit
In progress — Q3 2026
ISO 27001 information security
In progress — Q4 2026

For full security documentation including our responsible disclosure policy and data processing agreement (DPA) for GDPR-jurisdiction operators, see /security or email security@canalclear.org.

What happens if a filing is rejected

Honest answer: rejection happens. Here's what CanalClear does about it, and what the formal liability position is.

Rejection scenarios and CanalClear's role

Not all rejections are equal. The table below distinguishes between what CanalClear is responsible for and what falls outside the scope of filing validation.

Rejection reason CanalClear's position
Field error caught by our rule set — CanalClear missed it We missed it. File a support ticket — we'll investigate the rule gap and prioritise a fix. We don't charge for re-validation on the same filing.
Regulation change published after your filing We update rules pre-effective-date for known amendments. For emergency authority notices, we push updates within 24 hours and alert affected users.
Authority-side scheduling, operational, or system issues Outside filing quality — not a validation issue. Contact your agent.
Agent submission error (wrong portal, wrong form version) Outside CanalClear scope. The validated package is correct — the submission error is in the agent's process.
Novel regulatory interpretation (treaty exemption, unusual cargo class) Edge cases requiring legal interpretation are outside automated validation scope. See Section 3 — "Does not provide legal advice."

SLA commitments

CanalClear operates on a commercially reasonable uptime basis with no formal SLA for the current tier. Enterprise accounts (fleet-wide and agency plans) can negotiate SLA addenda — contact support@canalclear.org.

Formal liability

CanalClear's liability is governed by our Terms of Service. In short: we are a software tool that assists with compliance preparation, not a licensed agent or legal services provider. Liability is limited to the value of your subscription for the relevant period.

A practical note on risk

CanalClear reduces rejection risk by catching errors before submission — it doesn't eliminate it. The right framing: CanalClear is what you do before you hand the filing to your agent. A CanalClear-validated filing still requires a licensed agent and manual authority submission. We make that process faster, more accurate, and auditable — not legally guaranteed.

See it working on a real filing

Try the demo to see what a VUMPA, SCA, or SP-1 validation actually looks like — errors flagged, remediation steps, deadline tracking, and the full compliance report.