Navigating Customs Tariff Codes with Expert Automation – iCustoms
Navigating Customs Tariff Codes with Expert Automation – iCustoms International trade is complicated, and so are the customs processes and rules that govern it. However, customs tariff codes have substantially simplified customs processes and international trade. The function of customs tariff codes in streamlining international trade lies in the importance of precise product categorisation. Global trade volume is increasing enormously every year, resulting in more stringent and complex customs processes. A McKinsey 2021 report predicts that “The global trade volume could grow around $4.4 trillion per year by 2023 if the customs procedures are made more efficient.” The only way to improve customs procedures is through automation. Another finding from McKinsey reveals that, “Automation has the potential to reduce traders by 50% of the time they waste on finding customs tariff codes manually.” This translates to significant time savings for businesses involved in international trade, potentially leading to faster product delivery, improved customer satisfaction, and a more competitive edge. In this blog, we’ll discuss the advantages the customs tariff codes provide to businesses and customs agencies. Moreover, we’ll also look at how automation may dramatically change customs procedures, allowing for faster clearance times and more efficient trade facilitation overall. Comprehending customs tariff codes Customs Tariff Codes, commonly known as Commodity Codes, are standardised product categories. These codes are very important for correctly classifying products for customs. They facilitate duty assessment and trade data by providing a common language to designate distinct products. Revealing the HMRC’s commodity codes The UK’s tax agency, HMRC, keeps a full set of Commodity Codes, which are sometimes called HMRC HS Codes. These codes offer importers and exporters a uniform point of reference by classifying products for customs purposes. It’s crucial to comprehend and apply these commodities codes if you want to successfully negotiate complex customs processes. Do customs tariff codes define customs procedures? The answer to this question includes a variety of aspects because customs procedures vary from state to state. Here, we’re going to talk about UK customs. Tariff codes are obtained from the HMRC website using the tariff code platform. It is a custom codes hub that enables domestic and international customs brokers working in small or large firms to get authentic codes. These are more resourceful when it comes to import codes because, while importing, the first six digits must match globally. They are equally useful in exporting goods, too, as the codes, product descriptions, and VAT percentages are acquired with respect to each product. The major task in customs procedures is defining the exact code based on the description of the product. For customs declarations, these tarrif codes are easy to find on customs clearance websites that provide customs services, such as iCustoms. Why do websites obtain the customs tariff code? The only source that provides customs tarrif codes is the HMRC official website, but it gives the declaration websites and companies the facility to verify and cross-check the codes of the product based on the keyword or description. Some of the reasons why websites use customs tariff codes are due to the: Since the HMRC platform is open to anyone and does not cost anything, websites frequently rely on it as a primary source. Websites have developed their own tools for getting codes, such as product classification, commodity code checker, HS-code finder, and HS tariff code lookup. HMRC has created a chain for trading websites and companies to earn money and also help in revenue generation. These websites provide several other services other than commodity code checker which are essential in customs declaration services. Future automation based on custom tariff code In the future, automation based on Customs Tariff Codes will be able to connect with systems outside of customs clearance. Trade participants may know where their products are at all times by linking customs codes to logistics management platforms and enterprise resource planning (ERP) systems. Tarif codes data is more easily shared and tracked, and stakeholders can work together more effectively because of this connection. Customs processes that rely on commodity code tariff have much to gain from using blockchain technology. Blockchain technology offers a distributed ledger system that is transparent, secure, and immutable, making it ideal for logging and validating business records. Customs officials may use blockchain technology to build a decentralised platform for information exchange among importers, exporters, logistics providers, and other organisations. Customs operations can be made more trustworthy, fraud can be minimised, and trade efficiency will increase thanks to this technology. Comparison of different customs tariff codes provided by firms Firm name Product Description iCustoms Product classification It provides separate tools for HS code, including an HS code finder, an HS code lookup, and mapping. It streamlines the strategy when uploading product files by automatically generating the HS code and also verifying it. Additionally, it provides the relevant VAT percentage but, Duty tax calculator is the specific tool for it Descartes UK Product classification and duty determination It gives the product description and the code but doesn’t provide the facility of cross-checking the code and additionally, it provides the VAT percentage with the product without providing any specific features. AEB Product classification Its product classification is similar to iCustoms but doesn’t support HS-code mapping and lookup finder. Rest it generates the code with the product description and provides the value-added tax information. Customs 4trade CAS declarations CAS declarations only provide declaration services for importing and exporting. It gives document uploading and a tariff code finder option but doesn’t provide any special features. Eurora Solutions HS code allocation Its code allocation tool is similar to iCustoms, but the difference arises when you need HS mapping and product classification. The above table depicts that iCustoms ranks higher than other customs clearance websites because of its user-friendly interface and ease of use. Custom tariff code or tarif code requires global updating and similarity for a smooth customs experience. Each and every customs website has some special features and follows different working terminologies. iCustoms product
