Avalara announces new AI-based Tariff Code Classification Solution

Leading provider of tax compliance automation software, Avalara has launched an Automated Tariff Code Classification, an AI-based system that uses a pioneering combination of proprietary, advanced AI, machine learning, and natural language processing methods and technologies to classify large product catalogues quickly and efficiently to Harmonised System (HS) or Tariff Codes.

Automated Tariff Code Classification is a cost-effective solution that helps supply chain and logistics providers, e-retailers, and global marketplaces calculate customs and duty taxes and comply with international shipment requirements in near-real time.

Avalara uses advanced AI and machine learning algorithms to analyse product descriptions, attributes, and other relevant information to determine HS Codes. The system scans the World Customs Organisation and individual country websites and automatically extracts updates to the HS Code and tariff schedules.

Avalara maintains an extensive global database of HS Codes and product descriptions to help ensure appropriate HS classification. The system uses the latest HS Code information to classify goods.

As an HS Code gets validated or verified, the product and corresponding HS Code are added to the system database and the AI system learns from it. This continuous improvement ensures the system is constantly learning and is regularly updated with global, country and industry-specific information.

The HS classification service seamlessly integrates with Avalara’s other tax compliance solutions, providing a comprehensive end-to-end tax automation platform.

Avalara general manager of cross border, Craig Reed said, “Classification for large product catalogues is a challenging and time-consuming process that often requires specific expertise. The launch of Automated Tariff Code Classification helps businesses simplify the management of the complex HS or Tariff Code Classification process, supporting efficient use of business resources and helping to protect business margins by replacing manual processes.”