HS complex codes BOX 13 Today’s traders must navigate over 10,000 trade restrictions and tariff provisions introduced in the last decade. The complexity of these regulations creates pressure on logistics providers and customs brokers to operate in an increasingly volatile, high-stakes regulatory landscape. AI offers some good news for traders who need to comply with these regulations and ensure shipments conform to standardized trading codes known as HS codes. Such codes are the backbone for coordinating shipping in many contexts; however, they can also add complexity. AI can facilitate traders’ compliance with various requirements by supporting language processing and documentation requirements. For example, the technology provider AltanaAI can: –Automate more than 80% of classifications –Improve the accuracy of automated HS classification from below 50% to 80% or more –Audit existing classifications to ensure compliance –Provide up-to-date tariff data Source: AltanaAI More than just incremental improvements, these customs changes have the potential to transform practices. Traditionally, customs operations have operated on a transaction basis, wherein authorities selectively inspected products at the border. AI and new technology enable the shift to a systems-based approach, wherein businesses can integrate their shipping and information-management systems with customs and tax platforms, with risk-based inspections at any point.21 So far, the gains from such technology have largely been concentrated in regions where information infrastructures are already well developed. International coordination is needed to ensure a broader range of jurisdictions and entities can benefit from the potential gains of AI-linked improvements. Current and future applications of AI in customs and compliance FIGURE 8 Document processing Risk management Compliance Current applications: OCR for data extraction and digitization Digital form creation AI-powered TSWs for automated filing Future applications: Comprehensive business-to-government (B2G) and government-to-government (G2G) TSW system connectionCurrent applications: Cargo scanning for contraband detection Risk prediction targeting high-risk shipments Future applications: Augmented cargo scanning for automated clearance and compliance Risk profiles and tiered system for automated clearance of low-risk shipmentsCurrent applications: HS code and tariff classification Repository of compliance measures Automated assistants Future applications: End-to-end traceability for compliance and preferential access (rules of origin) Augmented and adaptive automated assistants Perfect HS code and tariff classificationAI can also help traders and officials navigate new regulatory requirements to combat forced labour. For instance, US regulators designed the Uyghur Forced Labor Prevention Act19 to bar products from the Xinjiang Uyghur Autonomous Region in China due to forced labour concerns. US Customs and Border Protection use AI-powered solutions to enforce the ban accordingly.20 AI tools can enable officers and analysts to gain insight into obfuscation techniques – such as shifting corporate networks – that companies use to conceal forced labour within their value chains. Artificial Intelligence for Efficiency, Sustainability and Inclusivity in TradeTech 24

Artificial Intelligence for Efficiency Sustainability and Inclusivity in TradeTech 2025