Product Classification

Issues and Challenges

Product classification forms the basis for nearly every export/import control, tax, tariff, and fee imposed by Customs and other governmental authorities worldwide. Choosing the correct product classification code is critical for export compliance and for accurate payment of import duties at the port of entry.

Challenges include:

• Navigating the depth and detail of the Export Control Numbers and Harmonized Schedule Numbers to assign the correct product code

• Understanding and assigning the correct codes for complex classifications

• Documenting the classification decision process in case of potential audit

• Managing multiple classification systems, such as those required by other agencies or governments

• Handling periods when product classifications are about to change, or when products have classifications that may vary over the course of the year

How Amber Road Can Help

Amber Road's global product classification features help you properly classify products based on the relevant country of import (COI) and country of export (COE) while also documenting your decision criteria in case of audit. A user-friendly search wizard assists you with the classification process, providing all the information necessary to choose the right product classification.

Our classification engine can also assist you with complex classifications, such as those required for sets, ensembles or tools, and cutlery. The search wizard assists you in classifying each item in a set, including the assignment of essential character. You can also use search criteria such as legal word or common words to find a classification code.

The Global Product Master (GPM), a centralized source of product information, stores classifications along with an extensive array of product data that fuels subsequent transactions. It also allows you to manage compliance for each product, and for every variant of that product.

You can also assign multiple effective dates for product classifications. This is particularly useful for managing regular updates to the HS. By setting an effective date, you can terminate the usage of one code while initiating another without having to scramble to update codes the day they expire.