HS
Classification errors cost importers and governments
billions of dollars annually. The United States Government
confirms that misclassification is the No. 1 cause
of non-compliance- accounting for approximately 75%
of all import violations. The Auditor General of
Canada reports that 30% to 50% of all customs entries
(depending on the industry examined) contain classification
errors, impacting the operations of 90% of all export/import
companies.
Classification errors occur because of:
-
Complexity - The Harmonized System is an extremely
complicated structure that describes products in
technical and unfamiliar terms and is governed by
a multitude of complex rules.
-
Specialized
knowledge requirement - A unique
combination of knowledge of the Harmonized
System rules and of the product is required
to bridge the gap between how products are
commonly described by their manufacturers and
distributors and how they are expressed in
the HS. Developing and retaining personnel
with this knowledge is difficult and expensive.
-
Manual
processing - Without 3CE, classification
is a time-consuming, manual process. Current
classification tools deliver mostly irrelevant
and/or incorrect results and depend on the
depth of knowledge and experience of users.
3CE is a breakthrough in Commodity Code
classification that applies state-of-the-art information
technologies to translate common product descriptions
used on invoices and product catalogues into the
correct HS Code and retrieves the proper tariff rate
for any country.
3CE is the solution to the needs of:
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