Automating Cross-Border Product Classification - Indix
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Automating Cross-Border Product Classification

There is no denying that cross-border eCommerce is growing. According to Forrester, cross-border shopping will make up 20% of eCommerce in 2022 with estimating sales reaching $627 billion. Nearly 25% of which will be third-party units sold on Amazon.

With this growth, there is an urgent need to scale and find an automated solution to assign Harmonized System (HS) codes. Today the system is manual, filled with errors, left incomplete, and time-consuming. HS Tariff Code identification is a known challenge that is causing internal workflows to limit the volume of packages you can verify and ship.

Improper HS codes are also costly! Mistakes can lead to paying too much duty, being fined for the inaccuracy, border delays, non-compliance penalties, seizure of goods or denial of import privileges.

 

 

Things get even more complicated with Schedule B codes. U.S. exports are required to include a 10-digit subset of Harmonized Tariff Schedule (HTS) codes to further specify goods. With the same consequences applying to HS codes; failure to properly classify products can lead to fines and other penalties.

U.S. HTS code example:

Image from datamyne.com

 

Bottom line is, this process is very granular and specific depending on your products. Becoming more efficient in this procedure will increase the volume of packages your team moves through the customs compliance process – necessary for your company’s growth.

Indix engineers recently developed a resolution to this problem. Our data asset of 1.2 billion products and prediction AI services provides an automated solution for the challenging task of classification. Indix’s database is mapped to the HS Tariff Codes with bulk capabilities to scale the volume of packages.

Visibility to mapping provided by Indix’s taxonomy allows the process of classifications of a number of factors including composition, form, and use of goods to be automated. Making it simple to lookup and verify product codes.

This results in companies saving time by flagging fewer packages for review and lowering their risk of breaking compliance regulations. Along with saving time, you’ll save some money too.

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