The Weekly Current

A tariff snippet a day will not keep U.S. Customs away. The last two years have been nothing short of confusing for importers assessing duties and tariffs…new tariffs, expiring tariffs, all with a myriad of conditions and exclusions.

In a time when AI helps us make shopping lists, keeps our schedules, and formalizes emails to the point of robotic communication, it makes sense that this web-based brain should be able to lend guidance on what duties and taxes look like today, right? There is an adage in data collection: “junk in, junk out.” So many elements are now required to classify goods and assess tariffs. Beyond the form, fit, and function of an article, factors such as the date the goods set sail, U.S.-origin raw materials, and country- and industry-specific exclusions now come into play. Common apps are not equipped with the decision trees needed to assess, or even recognize the necessity of, all these inputs. Asking good ole ChatGPT for the HTS classification of a steel screw overlooks details such as shaft diameter and head type, which are required to properly determine all 10 digits of the classification.

In a day and age when the fear is that AI will take jobs away, your trusty customs broker isn’t packing up their desk just yet. According to CBP notice 5699-1026, recently distributed to customs brokers, “active supervision is required,” and we are “prohibited from using SI or OCR tools to make decisions (that are customs business) and cannot delegate the licensed broker’s responsibility to the app; or it’s company or developers.” We have been explicitly reminded that “customs business” (19 U.S.C. 1641) must be conducted by a licensed customs broker. While a tool may help provide suggestions, brokers “must oversee the output of any AI or automated tool used in their brokerage business.”

In this tornado of tariffs, possibly a thousand HTS and tariff rate snippets have crossed our path. To date, zero have been 100% accurate. However, all have provided some guidance to help the user get to the right answer. But the right answer, by law and nature, must come from a living brain. And in the matter of Customs Business, that person must be licensed. So yes, in our day-to-day operations, our industry may use a classification tool to assist, but a licensed customs broker must then apply the General Rules of Interpretation within the Harmonized Tariff Schedule to reach a conclusive, accurate, and compliant answer. With such amazing new products hitting our shores, an occasional Google search is a must to understand client commodities. It starts the decision-making process but never makes the decision.