Avalara Tariff Code Classification automates the classification of HS, HTS, and Schedule B codes by evaluating product-level details and assigning the code for that product in more than 180 countries based on regularly updated customs data.
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Receive highly accurate HS and HTS code classifications powered by algorithms based on a combination of AI and machine learning engines, plus human expertise.
Keep your customers happy by using more accurate classifications to properly charge customs duties at checkout.
Increase documentation accuracy to overcome cross-border challenges, reduce customs shipment delays, and avoid additional supply chain and delivery costs.
Connect and scale seamlessly with existing business applications, API, or file-based workflows (SFTP).
Expand your global classification reach with Avalara Cross-Border Tariff Content.
Classify large product catalogs in batches with Avalara Trade Compliance. No prior HS classification experience is necessary.
Video: Avalara automates HS code assignments and international tax calculations.
Avalara Tariff Code Classification automates the classification of HS, HTS, and Schedule B codes by evaluating product-level details and assigning the code for that product in more than 180 countries based on regularly updated customs data.
An AI-based tool that quickly classifies large product catalogs to HS or HTS codes to calculate customs duties and taxes in compliance with international requirements.
A user-friendly HS classification tool that uses AI to generate mandatory universal 6-digit or country-specific 10-digit HTS codes from commercial goods descriptions.
An automated solution built to streamline the classification process offering HS code support for more than 180 countries. With a team of 260+ classifiers, plus proprietary AI, it can scale product volumes ranging from dozens to millions.
*Classification listing count as of 1/1/2023
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Harmonized System (HS) codes are internationally standardized 6-digit codes used to classify traded goods. Harmonized Tariff Schedule (HTS) codes are 10-digit extensions of HS codes used by the U.S. to determine import duties and regulations. Tariff codes generally refer to classifications used to impose duties on imports, varying by country and often based on the HS system. Schedule B codes are 10-digit codes used by the U.S. to classify exported goods, maintained by the U.S. Census Bureau.
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 (HS 2022) became effective on January 1, 2022. However, many countries still use older HS versions, 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 ML and 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, extra supply chain costs, and failure to meet customers’ delivery expectations.
See how our solutions can help you manage international tax compliance.