One of the challenges faced by shipping and logistics companies is dealing with international trade, as each country has its own unique tax regulations and Harmonized System (HS) code book. To successfully navigate this complexity, it’s essential to have customs experts at each location who understand the local HS code system and are proficient in declaring customs information to the government

What if your customs experts could increase their productivity by 80%?

This is where the power of AI comes into play. In today’s modern world, Language Models like ChatGPT have revolutionized numerous industries. AI has become the driving force behind improvements across every sector, making it an indispensable part of the future. HS code classification, which traditionally can be a challenging and time-consuming process, has also benefited from AI advancements

Here are the top HS code AI solutions for 2024

AiDock

AiDock offers an AI solution for HS code classification, which is used in international trade to classify goods.
Their AI assistants provide services such as document labeling, data extraction, HS code classification, and compliance monitoring.
This technology aims to simplify customs complexity and automate manual processes, ultimately revolutionizing international trade and document processing.
The AI solution is designed to ensure accurate and efficient classification of products for customs declaration, thereby helping businesses avoid risks and financial losses associated with incorrect HS code classification.

Zonos

Zonos offers an AI-based automated classification solution called “Classify” to generate accurate and efficient Harmonized System (HS) codes for products. This technology uses algorithms and statistical models powered by a state-of-the-art multimodal AI system to enhance customs clearance efficiency and prevent delays by accurately classifying products. The solution is available through an API or the Zonos Dashboard, allowing users to effortlessly classify their entire product catalog. It also provides industry knowledge on the Harmonized System and how HS codes work, aiming to help businesses calculate landed costs, flag restricted items, assign accurate duty and tax rates, and ensure compliance

levity

Levity offers an AI solution for automating HS code classification. Their AI tools, including the algorithm constantly learning and improving, can be used for HS code automation without requiring coding skills. This technology aims to streamline business processes, improve accuracy, and save time by leveraging artificial intelligence for HS code classification and other tasks such as auto-tagging items and classifying email responses. The solution is designed to be useful for different industries and is available in a free version, with the paid plans offering an ever-improving AI model. Levity’s AI tools set it apart from the competition, and the company is at the forefront of advancing AI and driving innovation in trade and document processing

The World Customs Organization

The World Customs Organization (WCO) has developed an AI model to recommend HS codes, aiming to support commodity classification for Customs officials by using historical data. The WCO invites interested parties to try a demonstration tool for automatically classifying goods with their commercial descriptions and to contact them for further customized support. The organization also offers an advanced online course on the model and recommendation service, available for instant use. The WCO’s efforts reflect the increasing awareness among Customs agencies about the importance and application of AI in automating HS classification

How do AI solutions improve the efficiency of HS code classification?

AI-powered solutions enhance the accuracy and speed of HS code classification by leveraging machine learning algorithms to analyze and categorize products based on descriptions and characteristics. This reduces human error and the time required for manual classification, enabling customs experts to focus on more complex tasks and increase their productivity by up to 80%.

Can AI understand and adapt to different countries’ customs regulations and HS code systems?

Yes, advanced AI models are designed to comprehend and adapt to different countries’ varying customs regulations and HS code systems. By continuously learning from a vast array of data sources, including changes in international trade laws and updates to HS code books, AI can provide up-to-date recommendations and ensure compliance with local regulations, making international shipping smoother and more efficient.

What are the key benefits of integrating AI into customs and international trade operations?

Integrating AI into customs and international trade operations offers several key benefits, including enhanced accuracy in HS code classification, reduced time and costs associated with manual data entry and classification, improved compliance with international trade regulations, and the ability to adapt to changes in customs laws quickly. Additionally, AI-driven analytics can provide insights into trade patterns and trends, helping businesses make informed decisions and optimize their supply chain strategies.