Customs Tariff Classification and the Use of Assistive Technologies

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 World Customs Organization’s (WCO) 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. It is argued that there is considerable potential for such technologies, however, 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.