Tariff Code Classification

Tariff codes and Harmonised System (HS) codes made easier with Avalara Tariff Code Classification

From self-serve solutions to managed service, automate your tariff code classification process for fast and consistent results.

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KEY FEATURES AND BENEFITS

Speed up and simplify your process with automated tariff code classification software

1.

Classify quickly with technology

Receive regularly updated classification powered by algorithms driven by machine learning, human expertise, and an AI-based classification engine.

2.

Charge duties and taxes with greater accuracy

Improve your customer experience by mitigating under- or overcharging your customers due to incorrect tariff code classifications.

3.

Overcome cross-border challenges

Strengthen documentation accuracy, reduce customs delays, and avoid other supply chain and delivery costs by assigning more accurate HS codes.

Avalara Self-Serve Tariff Code Classification

A user-friendly HS classification tool that uses AI to generate mandatory universal 6-digit or country-specific 10-digit tariff codes from commercial goods descriptions. No prior HS classification experience is needed.

Commonly used by brokers and shippers

Driven by intelligent interactivity, the classification process intuitively delivers a single tariff code for each product

Automated tool for in-house research that delivers hard-to-find trade information instantly and more accurately

Avalara Managed Tariff Code Classification

An automated solution built to streamline the classification process offering HS code support for 180+ countries. Supported by proprietary AI, and capable of scaling product volumes ranging from dozens to millions.

Commonly used by large shippers

Supports large product catalogues and high-order values

Outsources the HS classification process following order acceptance prior to shipping

Avalara Managed Tariff Code Classification Premium

Combines the cutting-edge technology and domain expertise of Self-Serve Tariff Code Classification and Managed Tariff Code Classification to ensure peace of mind that a more in-depth classification has been applied to imports.

Commonly used by importers and customs brokers

Captures transaction details and provides classification rationale to support customs audits

Assigns more accurate HS codes for complex products, analysing ingredients, materials, restrictions, and more

Here’s what our customers have to say

“I’d have to hire at least three people with tax experience to do the work that Avalara is doing for us.”

—Jason Macatangay
Chief Financial Officer, Threadless

Read full customer story

Choose the tariff code classification right for your business

 Avalara Self-Serve Tariff Code ClassificationAvalara Managed Tariff Code ClassificationAvalara Managed Tariff Code Classification Premium
Determination typesInteractive user experience + expert-based, AI-assistedMachine learning + human expertiseMachine learning + human expertise
Distinguishing featuresNo prior experience in HS classification or upfront training neededHS code support for 180+ countriesRationale to support customs audits with more accurate classification on imports
Integration optionsAPI and SaaS UIBulk file upload and APIFTP and API
Input needed

Product description

Destination country

Item name summary

Item group URL

Destination country

Item name summary

Item group URL

Destination country

Output data6-digit or 10-digit tariff code, duty rates10-digit tariff code10-digit HS code, including case studies and rulings

Frequently asked questions

HS codes (Harmonised System codes) classify goods for international trade, while HTS codes (Harmonised Tariff Schedule codes) are U.S.-specific and based on the HS system. They have additional digits for more specific classifications used by U.S. Customs and Border Protection to determine tariffs and trade statistics.

Tariff codes determine rates for a product and may be based on HS, HTS, or country-specific tariff schedules.

HS codes are important because they’re the language of international merchandise trade. Not only is HS classification a mandatory requirement for customs, but submitting an inaccurate HS code can result in an overpayment or underpayment of duties and taxes or a violation of trade compliance laws, which can lead to goods being delayed at the border and an assessment of penalties and fines.

It’s not recommended to use the same HS code for multiple products if they’re different in composition, form, or function. HS codes are assigned based on the specific characteristics of the product, so each product should be classified under the appropriate code that best describes its attributes.

HS codes are periodically reviewed and updated by the World Customs Organization (WCO) to ensure that they reflect changes in technology, trade practices, and new products entering the market. The most recent version of the HS (the HS 2022) became effective on January 1, 2022. However, many countries still use older versions of HS, which are noncompatible with HS 2022. It’s important to know that country-specific tariff codes and their associated duty rates can change several times a year as well.

All Avalara Tariff Code Classification offerings classify products to the country-specific tariff level and help with taxability determination and shipment requirements, although the level of support from our team of experts varies to cater to your needs.

Automated HS code classification is achieved through the deployment of machine learning (ML) and artificial intelligence (AI) technology.

Avalara Tariff Code Classification offerings combine an intuitive AI-enabled tool with machine learning and human expertise.

The penalties for incorrect HS code classification vary depending on the country and the severity of the violation. However, in a recent Avalara survey, respondents reported that the incorrect classification of goods resulted in more frequent delays in customs, added costs of tariffs and duties, added supply chain costs, and failure to meet customers’ delivery expectations.

Related solutions

RESOURCES

Check out our guide
Get the ultimate guide to HS code classification.

Check out our blog
Learn the two key factors of customs compliance.

Read our introductory guide
Discover the first steps towards cross-border tax compliance.

 

Connect with Avalara

See how our tariff code classification solutions can help manage your international tax compliance

Connect with Avalara

See how our tariff code classification solutions can help manage your international tax compliance