Automate Code Research.
Maintain 100% Customs Governance.

The Harmonized System (HS) is the World Customs Organization's global 6-digit classification standard, used by more than 200 countries. HTS (Harmonized Tariff Schedule) is the US-specific extension of that system to 10 digits. HSN (Harmonized System of Nomenclature) is India's extension, used for GST and customs. The first 6 digits align internationally; the extended digits, duty rates, and exemptions are country-specific, so a code built for one country's schedule needs re-validation before it's used in another.

Misclassification triggers immediate operational and financial damage as tariff applicability is defined by the HS / HTS code. Impact could be: a) Underpaying tariffs exposes your company to retroactive customs audits, heavy transactional fines, and systematic border enforcement actions. b) Conversely, using generic fallback codes often leads to significant duty overpayments, eroding margins. c) Operationally, incorrect codes lead to frozen shipping lanes, severe customs clearance delays, or cargo seizures.

The AI reads your product's attributes and description, compares them against classification rules, chapter and section notes, WCO explanatory notes, and prior rulings, then recommends the most relevant code with a confidence score and the reasoning behind it. A human reviewer approves, edits, or overrides the recommendation before it's finalized.

Human review stays in the loop. The AI narrows a large search space to a short, well-justified list and does the research work; your team makes the final call. That combination is what makes the decision defensible in an audit — a code with no rationale attached is a liability, no matter who or what assigned it. The AI gets more intelligent with its determinations with time and usage.

Yes. The core HS-6 classification logic is shared internationally, and Compliance Cart's Regulatory Intelligence repository layers country-specific rules, tariff lines, and documentation requirements on top — so the same product can be classified consistently across US HTS, EU TARIC, India's HSN, and other national schedules.

The World Customs Organization (WCO) updates the international 6-digit Harmonized System every five years to account for new technology and shifting trade patterns. However, national custom authorities (such as the US CBP or EU TARIC) change local duty rates, anti-dumping regulations, and 8-to-10 digit subdivisions continuously throughout the year. Automated trade compliance software, like Compliance Cart, utilizes real-time API data feeds connected directly to global customs authorities to ensure your database is screened against current tariff lines automatically.

It's stored in the central repository Product Master of the organisation, along with the regulatory mapping, AI rationale, and audit trail. From there it's reusable across future shipments, other business units, and the same product line — and it feeds back into the AI, so future recommendations improve over time. Benefit: If needed in Audit you can pull up all your reasonings and explanatory notes to substantiate your classification decision.

Officially, both are legally responsible, but for different stages of the shipment:

The Supplier (Exporter) is legally responsible for declaring the correct HS code (typically 6 digits) on export documentation (such as commercial invoices and packing lists) to clear customs in the origin country.

The Buyer (Importer of Record) is legally responsible for determining and declaring the full HTS/Tariff code (typically 8 to 10 digits) to the destination customs authority, paying applicable duties, and ensuring local regulatory compliance.