Ref.: Tariff classification
International trade is becoming increasingly complex and intricate. The tariff classification of traded goods has historically been a complicated but fundamental technique for conducting trade transactions between all countries on the planet. A few years ago, customs professors argued that the interpretation of the rules of the Harmonized Commodity Description and Coding System (HS) would always be reserved for humans, that is, for professionals specializing in merchandise and tariff classification. But, as nothing lasts forever and the world evolves, the 21st century marks new directions and potential disruptions to old paradigms.
Just a few weeks ago, the trivialization and viralization of ChatGPT-Open AI sparked a huge global debate about the use of artificial intelligence for various purposes.
ChatGPT defines itself as a model that “can generate coherent and natural responses to questions and comments in real time, making it useful for applications such as chatbots, virtual assistants, and dialogue systems.” Many users who have tried its conversational interface emphasize one point: ChatGPT’s ability to offer very human-like responses. (Taken from https://blogs.funiber.org/)
Just as there are virulent detractors, there are also fervent fans of this new technological tool. In the midst of the Industry 4.0 era, it doesn't seem like a good time to question technological advances, nor to elevate it to the pedestal of the Olympian gods. We must be pragmatic and use technology as a support tool, as a means and not as an end in itself. We mustn't fall into the trap of blindly believing everything a machine tells us, but neither should we waste its advantages to support human expert judgment. So far, we are still necessary. Tomorrow, we don't know!
Regarding tariff classification, three simple examples using ChatGPT: One wrong answer, one indeterminate answer, and one correct answer.
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Query #1: What is the tariff classification of a non-living edible insect?
ChatGPT response:
The tariff classification of non-living edible insects may vary by country and by country-specific legislation. Generally speaking, non-living edible insects can be classified as animal products and may have a specific tariff code within that category.
However, some countries may have specific tariff codes for edible insects, as these products are relatively new in many markets and their exact classification is not yet fully established.
To determine the precise tariff classification of dead edible insects, it is recommended to consult the tariff schedule for the country of origin or destination of the goods. This information can be obtained from customs or the foreign trade department of the country in question. Additional details about the product, such as its presentation or intended use, may also be required for proper classification.
ChatGPT response type: Undetermined.
Correct answer: The classification of a “non-living edible insect” does not depend on the country and legislation, since according to Legal Note 2 b) of the HS, these insects are classified in the HS under heading 04.10.
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Query #2: Where are fresh pineapples classified?
ChatGPT response:
The tariff classification of fresh pineapples may vary depending on the tariff classification system used in each country. In general, fresh pineapples are usually classified as fresh fruit, with further subclassification based on the type and variety of pineapple.
For example, in the Harmonized System (HS) tariff nomenclature, which is widely used internationally, fresh pineapples are typically classified under category 2008.90.00, which refers to “fresh fruit, excluding citrus fruits and bananas,” and there may be more specific subcategories depending on the country.
It is important to note that the specific tariff classification of fresh pineapples may vary depending on the country of origin and destination, as well as other factors such as pineapple variety, ripeness, and presentation (e.g., whether cut or peeled). Therefore, if you need more detailed and precise information on the tariff classification of fresh pineapples in a particular country, it is recommended to consult with the customs authorities or a trade specialist. international.
ChatGPT response type: incorrect
Correct answer: The classification of “fresh pineapple” by RG1 is subheading 0804.30.
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Query #3: Where are cell phones classified in the HS?
ChatGPT response:
Cellular telephones are classified under the category “Telephones for cellular or other wireless networks” in the Harmonized System (HS) tariff nomenclature.
Specifically, they are classified under subheading 8517.12.00, which refers to "Cellular telephones and other equipment for cellular or other wireless networks." This subheading is located within heading 8517, which refers to "Telephony apparatus, including mobile telephones and telephones for cellular or other wireless networks."
It should be noted that the tariff classification of cell phones may vary depending on the country of origin and destination, as well as other factors such as the type of device and its specific features. Therefore, if you need more detailed and accurate information on the tariff classification of cell phones in a particular country, it is recommended to consult with customs authorities or an international trade specialist.
ChatGPT response type: correct
Correct answer: like ChatGPT, the classification of “cell phones”, according to RG1, is subheading 8517.12
Corollary. Regarding tariff classification when using ChatGPT, for now, neither everything is true nor everything is false. Determining whether an answer is correct or incorrect is up to you, not the artificial intelligence tool.
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