Avalara unveils AI-powered automated tariff classification

Avalara has announced the launch of its Automated Tariff Code Classification system, designed to classify product catalogues using advanced AI technology.

The new system is intended to assist businesses such as supply chain and logistics providers, e-retailers, and global marketplaces in calculating customs and duty taxes and ensuring compliance with international shipment requirements efficiently.

The Automated Tariff Code Classification uses a combination of AI, machine learning, and natural language processing to analyse product descriptions and determine Harmonised System (HS) or Tariff Codes. According to Avalara, the system scans resources including the World Customs Organisation and individual country websites to keep up to date with code and tariff schedule revisions.

One of the core components of Avalara's solution is its comprehensive database, which offers extensive global coverage and uses current HS Code information to aid in accurately classifying goods.

Moreover, Avalara's system employs a continuous feedback loop whereby, as HS Codes are validated or verified, they are retained in the database to help the AI improve its accuracy over time. This ensures the system remains updated with the most relevant global, country, and industry-specific information available.

The service can also integrate with Avalara's other tax compliance solutions, creating a comprehensive platform for end-to-end tax automation for its users.

Craig Reed, General Manager, Cross Border at Avalara, commented on the new offering: "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."

This latest release is part of Avalara's commitment to investing in automation and AI, aiming to provide its global customers and partners with tools to accelerate digital tax compliance.