How to Find the Right Import Tariff Codes for Your Products in the USA Using AI

Navigating US import tariffs can feel like solving a massive puzzle. Every product you import needs an exact code from the Harmonized Tariff Schedule (HTS), a government list of about 20,000 product categories, each with its own duty rate. Picking the right code directly affects how much tax you pay and whether your shipment sails through customs or hits a costly snag. Traditionally, importers spent hours poring over dense code lists and rulings to classify a single item. But today, AI is changing the game, promising to make tariff classification faster, easier, and more accurate than ever.

Understanding Import Tariff Codes in the USA

At the heart of US import regulations are Harmonized System (HS) codes and their US-specific extensions, HTS codes. HS codes are standardized internationally at 6 digits, but the United States expands them to 10 digits for finer detail. The result is a vast catalog: the US HTS comprises tens of thousands of unique tariff codes, covering every conceivable product from raw materials to gadgets. 

These codes aren’t static either, they change often without warning as new products emerge or trade policies shift. For importers, keeping up with code updates is an ongoing challenge. Understanding this system is crucial because that numeric code determines the import duty rate, applicable trade agreements, and any restrictions for your product. In short, tariff codes tell customs exactly what you’re bringing in and what rules apply.

Why Accurate Tariff Classification Matters for Importers

Assigning the correct HTS code is far more than a paperwork detail, it’s a financial and legal priority. A small mistake in classification can mean the difference between a shipment clearing at 5% duty or getting charged 25% or more. And CBP has significantly ramped up enforcement activity. Importers caught misclassifying face not only back payments and fines, but also potential seizures of goods and legal action for customs fraud.

Read more about the costs of misclassification and why it is one of the biggest compliance risks here. 

Challenges in Finding the Correct HS or HTS Codes Manually

Traditionally, finding the right tariff code for a product has been a labor-intensive process. Import managers and customs brokers would sift through thick code directories and verbose legal notes, trying to match a product’s features to the exact wording of a code description.

Human error is an ever-present risk as descriptions can be confusing or outdated, and many products seem to straddle multiple categories. Moreover, the HTS is detailed: distinguishing between two seemingly similar codes often requires expert knowledge of subtle technical criteria. And since regulations are constantly changing, what was correct last year might be outdated after a tariff update or a trade agreement change. 

All of this means manual classification is painstakingly slow. Compliance teams can spend hours just determining which range of codes to even consider for a single product, delaying shipments and draining productivity. If a company has hundreds or thousands of products, the scale of this task becomes overwhelming. 

Disconnected data doesn’t help either: product information might be scattered across invoices, catalogs, or supplier specs, requiring extra digging just to get the details needed for classification. No wonder tariff code lookup is often described as a bottleneck. In this manual paradigm, what should be a quick task can drag into hours of work, introducing costly delays and increasing the chance of mistakes. 

How AI Simplifies Tariff Code Identification and Compliance

AI-powered tools are turning what used to be an arduous manual search into an efficient, semi-automated process. How do they work? In simple terms, an AI classification system is trained on vast amounts of trade data, like descriptions of products and the codes they were assigned, customs rulings, and the text of tariff schedules. With this knowledge base, the AI can analyze a product’s description (and even technical specifications or images) and then suggest the most likely HS/HTS code in a matter of seconds. 

This gives human experts a head start, focusing their review on a narrow set of options instead of the entire tariff book. The benefits are striking. Speed is one: tasks that once took hours now take minutes or less. Accuracy also improves, because AI doesn’t get tired or rush. It consistently applies the same rules and can even catch details a human might overlook. 

Plus, AI systems update continuously, so when tariff codes change or new regulations come into effect, the machine learns the new rules instantly. This means importers using AI are alerted to code changes or duty rate shifts in real time, ensuring compliance is always up-to-date. The end result is that companies can classify products faster and with greater confidence, freeing up their compliance teams to focus on more strategic work instead of digging through databases.

How Gaia Dynamics Ensures Accuracy in US Tariff Classification

One leading example of AI in action is Gaia Dynamics’ Classification Engine, which has demonstrated how a well-trained AI can achieve expert-level precision. In April 2025, Gaia’s AI-powered classification engine was put to the test against the notoriously difficult US Customs Broker License Exam. specifically the section that challenges humans on proper HTS code assignments. The result was eye-opening: the AI scored a perfect 100% on the classification section of the exam, even though only about 30% of test-takers passed the April 2025 exam. In practical terms, this feat showed that AI can not only match but sometimes exceed the consistency of seasoned professionals in applying complex tariff rules. Gaia’s system did it in under 8 seconds per question, providing not just answers but a step-by-step legal rationale and citations to official rulings. 

How does it achieve this? Gaia Dynamics combines machine learning with domain expertise: its AI has effectively digested the US tariff schedules and thousands of customs rulings, allowing it to classify new products with a high degree of confidence and transparency. This marriage of accuracy and explainability means importers and customs brokers using the platform can trust the AI but also verify its reasoning.

To read more about how Gaia’s AI passed the CBLE and what this milestone means for the future of global trade compliance, download a copy of our whitepaper here.

Conclusion

Importing into the US no longer has to mean drowning in tariff code handbooks. By leveraging AI for tariff code identification, businesses can turn a compliance headache into a streamlined process. The technology is already delivering impressive accuracy and speed. Importers large and small are using these solutions to save time, avoid costly mistakes, and even uncover savings (like spotting when a product could qualify for a lower-duty category or a free trade agreement benefit).

The world of trade compliance is only getting more complex, with new tariffs, trade wars, and regulatory changes constantly on the horizon. Embracing AI is essentially about future-proofing your import operations. It’s an investment in agility and precision. With AI’s help, you can confidently find the right import tariff codes for your products and keep your business on the right side of the law, all while saving money and staying competitive.

FAQ

Q: What is the difference between an HS code and an HTS code?

An HS code (Harmonized System code) is the international six-digit base classification for a product. Think of it as a universal category that most countries recognize. An HTS code (Harmonized Tariff Schedule code) is the extended version used by the United States, which adds four extra digits to the HS code. These additional digits provide more specific detail for US import regulations and duty rates. In practice, you might have the same 6-digit HS code for a laptop worldwide, but the US HTS code will be 10 digits and pinpoint things like whether it’s a touchscreen laptop, which can affect the tariff. Always start with the HS code as a foundation, then make sure you’re using the correct HTS code from the US tariff schedule for US imports.

Q: How does AI know the correct code?

AI systems learn from data. Developers feed them huge datasets of products and their correct classifications, along with the text of tariff schedules and customs rulings (which explain why a product was classified a certain way). So, when you input a product description, the AI uses algorithms to compare your description with all that learned knowledge before outputting a recommendation. Over time, as the AI is exposed to more corrections and confirmations, it gets even smarter. Importantly, good AI classification tools also update when tariffs or codes change. They’re always learning the latest rules, so they don’t fall behind the current regulations.

Q: Is an AI-chosen tariff code legally reliable?

CBP doesn’t (at least as of now) certify or approve classifications just because an AI tool provided them. You as the importer are always responsible for correct declarations. However, if your AI tool is well-designed and trained on up-to-date data, it’s likely to produce very reliable suggestions. Many AI systems, like the one from Gaia Dynamics we discussed, are getting benchmarked against expert performance and are hitting very high accuracy levels. That said, best practice is to use the AI’s recommendation as a highly informed assistant’s advice. You (or your customs broker) should review the suggested code, especially early on when you’re gaining trust in the system. Over time, as you see that the AI consistently gets it right (and perhaps even catches things you might miss), you’ll develop confidence in its choices. It’s also wise to document why a code was chosen: AI often can provide a rationale (like citing a similar classified item or a rule), which is great for record-keeping. In the end, if there’s ever an audit or question, you’ll be able to show how you arrived at the classification.