Why MCDS use AI on Tariff Codes

Artificial Intelligence (AI) refers to the ability of a machine to learn and make sense by copying human behaviors, interpretations and actions.

Artificial intelligence is a major technological development that draws much of its inspiration from biological systems, giving computers near-human abilities to reason and learn.

The processing of billions of commercial and logistical data with AI will make it possible to extract useful information for the customs professional in a few fractions of a second. From this point of view, AI is way ahead of man.

Artificial Intelligence (AI) as an essential tool in the customs world

Our point is not for Artificial Intelligence to replace human being. AI will not take the place of the customs worker, instead It will serve as a vital tool for customs professionals and increase their productivity.

AI can be used for several domains and different customs jobs.

We can get the following advantages:

  • Commodity classification into Harmonized System (HS), to ease the workload of economic actors and allow better compliance and reliability, both for customs and for the private sectors.
  • Revenue collection methods, to ensure that duties and taxes are properly calculated and collected at the border.

Artificial Intelligence (AI) to help for tariff classification

Customs basis are tariff classification, origin and customs value. Tariff classification is assigning a code to a goods. This customs code has a common international root of 6 digits called the HS code.

The problem is to automatically find the tariff code for goods.  Deep learning of customs tariffs, and explanatory notes plus analyzing a huge amount of data for international supply chain can provide faster and more reliable tariff code than human being.

The challenge can be met with a search engine including translates NLP language (product description or keywords…) into customs language to find the tariff code by tackling customs regulations complexity. By using natural language processing and deep learning technology layer, we can get the best tariff code from the product information.

"Smart HS essentially is a tool that uses artificial intelligence to assist with classification, Although it looks and acts like a search engine, it really is a decision support system that’s built upon the expert’s model of the domain, and that’s what differentiates it from other classification wizards or… tools." Rotchin said

Let's see the how it work's

it simple like you google with our powerful Artificial Intelligence (AI) Malaysian Customs Tariff Information Systems (MCTIS).