Keeping up with Changing Tariff Codes

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Tarif Codes Classification

Introduction

Organizations and companies often have innumerable SKUs, which they might want to trade across countries. If, however, there is no uniform system in place to classify their products, and assess any duties and taxes, things can go haywire. This is why they need to adhere to Tariff Codes. These are standardized codes that range from 6 to 10+ digits, and are used by customs authorities worldwide to identify products for assessing duties and taxes, gathering trade statistics, and monitoring controlled goods. With a company that aims to export the hundreds and thousands of products it manufactures, adhering to these codes can be a tedious and time-consuming task. Moreover, tariffs are constantly changing, so keeping a manual check on these is also impossible.

This is exactly why there is a need for companies to switch to an automated system that matches products to their respective codes accurately and without any hassle.

Why is it Important?

  1. Financial Impact and Cost Management: Misclassification of products could lead to companies having to pay higher tariffs, and also miss out on availing on any free trade agreements some countries might have in place.
  2. Logistical Efficiency: Using the right codes also allows for a smooth customs clearance, and also ensures an accurate documentation process, all of which collectively save time and valuable resources. 
  3. Strategic Business Planning: By using the right codes companies can also identify countries, i.e., potential new customers, to sell their products to, along with their tariff structures. 

dataX.ai’s Role: What can we offer?

  1. Accurate and Scalable: Our ML models are trained to process even large volumes of data, all while keeping a human in the loop to ensure accuracy and efficiency.
  2. Latest Tariff Codes: We always perform the classification to updated tariff codes.
  3. Risk Management: We ensure an adherence to the standards in place, to avoid any violations and delays. 
  4. Save Resources: Through the leveraging of supply-chain benefits, we help our clients avoid over or underpayment of these tariffs.

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