Customs Tariff Classification and Export Control Classification

Overview

The most fundamental task in international trade is determining the correct customs tariff classifications and export control classifications for a product. Subsequently, it is critical to consistently apply these classifications once they have been established. Classification can be a difficult undertaking but is an essential part of customs and trade compliance. Without  correct classifications, it is not possible to achieve the correct customs duty calculation or preferential treatment determination.

It is  common that people in different divisions of a company often make different decisions about customs tariff and export control classifications. This usually causes duplicative effort and inconsistent results for the same product. Furthermore, in an international environment, with multiple national tariffs, commodity lists, languages, complex interpretive notes and preferential duty rates, classification is quite difficult to manage. This leads to inconsistencies which are “red flags” to authorities, resulting in costly fines and penalties. To avoid this, a central and standardized product classification process is required.

MIC's Central Classification System (MIC CCS) offers a cost-effective solution for the determination, assignment and validation of customs tariffs classifications and export control classifications according to particular customs tariffs and export control commodity lists. Additionally, MIC CCS contains all necessary content in a user-friendly format. Most importantly, the software allows clearly structured control of the entire product classification process at a global level.

Global product customs tariff classification and export control classification

  • A global customs and export control item resp. product master, fully integrated with ERP systems
  • Stores, classifies and validates products against national customs tariffs and export control commodity lists
  • Fully automated, semi-automated, or manual workflow-based assignment of the customs tariff and export control classification for multiple countries
  • Automated customs tariff and export control classification based on company specific product characteristics (user-defined configurable select and matching rules)
  • Automated suggestion logic for customs tariff and export control classification based on intelligent matching algorithms using artificial intelligence and machine learning (AI&ML)
  • Automated customs tariff and export control classification of recurring articles
  • Automatically updated classifications throughout your organization due to cross-classification rules
  • Efficient transnational mass re-classification of multiple articles (e.g. for annual changes of customs tariffs)
  • Consistent customs tariff and export control classification through application of user-defined decision trees
  • Customs tariff and export control classification assignment for a new country based on that of another country (cross-classification)
  • Integration of documents and images of the products (document management) used in the analysis and review of the product
Simplified data management
  • User-friendly look-up of customs tariffs, export control commodity lists, as well as duty, tax and trade measures by means of a search assistant
  • Easy transfer of part data to be classified via interfaces with ERP systems and third-party service providers
  • Complete audit trail as well as customs tariff/export control classification history for each item
  • Full audit trail in case of revision
  • Global workflow management of classification tasks, performed from one or many locations
  • Data analytics for analysis and optimization of the quality in the customs tariff and export control classification processes
Optimized communication interfaces
  • Site-specific access to customs tariff/export control classification data
  • Web access to global customs tariff/export control classification data base (internet, intranet)
  • Regularly updated trade content by MIC’s Global Trade Content Service (GTCS) for more than 150 countries via fully automated interfaces to selected national and international content partners (e.g. national authorities, Mendel Verlag, PST.AG, etc.)
Benefits
01 Avoids double effort & inconsistency

due to cross-country workflow-based standardized product classification

04 Cost-efficient product classification

according to the national customs tariffs as well as export control commodity lists

02 Facilitates the determination

validation as well as allocation of customs tariff classification and export control classification numbers for a product through intelligent matching algorithm

05 User-friendly

format and look-up functionalities by means of search assistant 

03 Allows global control

of the entire product customs tariff classification and export control classification process

06 Regularly updated trade content

for more than 150 countries via fully automatic interfaces to selected national and international content partners

Resources
Industry News | | MIC Customs Solutions |
Tax | | MIC Customs Solutions |
Industry News | | MIC Customs Solutions |
Brexit | | MIC Customs Solutions |
News | Central Classification | 9 November 2021
News | Export Controls | Central Classification | Customs Filing | Origin Calculation | 8 March 2021
News | Export Controls | 29 January 2021
Customer Case | Export Controls | Central Classification | Customs Filing | 13 August 2020
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