Abstract: A character recognition system is described, in particular a system suitable for use in monitoring cargo container codes or vehicle number plates. An image of the code is first analyzed to extract potential characters. As part of this process, long horizontal and vertical line segments are filtered out. The extracted potential characters are then input to a two-level character recognition means. The first level comprises a neural network classifier that classifies a character into a smaller set of possible characters; and then the second level comprises another neural network classifier which identifies which character among the smaller set of possible characters the extracted character is.