Author: Dr Andrew Grainger

Abstract:

This paper aims to help inform discussions about customs tariff classification and the use of assistive technologies, especially those found online. It offers a broad background overview of classification practices and requirements by reference to the WCO’s Harmonized System (HS), incurred challenges and costs, and the types of technologies deployed to assist users in their classification endeavours. Reviewed assistive technologies and solutions range from information tools that make it easier for users to find classification relevant information (such as rulings and guidance notes) to Artificial Intelligence (AI) approaches that aim to suggest the most appropriate codes – with varying levels of success. Suggestions with examples about how to evaluate assistive classification technologies are provided. And, it is argued that there is considerable potential for such technologies but, this inevitably depends on how well they can understand HS relevant characteristics, the quality of data that supports them, and how well they have been developed or trained. The prize includes better compliance outcomes and improved trade facilitation by reducing classification related costs. However, it is essential that policy makers and users understand the opportunities and limits of assistive classification technologies.

Acknowledgements: The author would like to thank Avalara Inc for their kind support and sponsorship. The work is that of the author alone.

Disclaimer: The purpose of this paper is to help inform conversations about customs tariff classification practices with specific focus on supporting, assistive technologies. The author, Dr Andrew Grainger, has taken all reasonable care to make sure that the prepared content is accurate at the time of writing. However, it is important to stress that the subject matter is fast evolving and prone to change. No responsibility for loss or damage occasioned to any person acting, or refraining from action, because of the materials in this publication, can be accepted by Trade Facilitation Consulting Ltd or the author.