Customs Classification
Multi-regulation customs classification management for large product catalogs, combining nomenclature browsing, decision trees, automation, collaboration and auditability.
At a glance
| Area | Description |
|---|---|
| Purpose | Manages the assignment, validation and lifecycle of customs and export classification codes such as HS, CN, TARIC, HTS, ECCN and customer-specific regulations. It supports expert-driven classification while allowing standardized decision logic and automation for high-volume catalogs. |
| Typical inputs | Material master data, product descriptions, composition, images, attributes, existing codes, supplier data, BTI or expert documentation. |
| Typical outputs | Validated classification codes, status, decision history, supporting documentation, ERP transfer files or API responses. |
| Business value | Improves classification consistency, reduces manual workload, accelerates product onboarding, strengthens audit evidence and creates reliable trade master data for origin, customs and export control processes. |
Core capabilities
- Material classification workbench with filters, bookmarks, inline editing and export
- Multi-regulation code management with status, validity and workflow per regulation
- Official nomenclature navigation with code and description search
- Decision tree builder to guide non-experts through controlled classification logic
- Auto-classification runs using decision trees and product attributes
- Comparison between existing and automated codes with accept/reject workflow
- AI-assisted classification proposals with human validation
- Comments, labels, documents and full audit history per material
Business challenges addressed
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Large product portfolios with frequent product introductions and high classification workload.
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Need to manage several national or regional classification schemas in parallel.
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Inconsistent or undocumented classification decisions across business units and regions.
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Need to involve product experts, suppliers and customs experts in a controlled workflow.
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Audit pressure around classification justification, supporting documents and historical changes.
Functional description
Classification Module Scope
The determination of a correct classification of components and products is an essential prerequisite of any compliant foreign trade process. Product classification determines the customs tariff, the eligibility for free trade agreements as well as the requirements of export or import controls as well as many other requirements for product documentation at the export or import.
The solution allows the classification of products according to the reference data of the relevant legal regulations in a manual, semi-automatic or automatic method. It also validates the existing product classification, in particular in case of reference data change. A workflow functionality supports the collaboration between product experts, customs experts and external parties like component suppliers. Classification decisions can be documented in the solution and any changes are logged for auditing purposes.
The Classification module supports classification in the Customs as well as in the Export Control domain.
Classification Reference Data
The classification Module allows the classification along international and national classification schemas. These schemas are kept up to date by MyTower and the users are alerted if there are changes to these schemas.
We are sourcing the official classification nomenclature where they are published online by the respective customs authorities for all major legislations including but not limited to EU, UK, US, MERCOSUR Countries, ASEAN, China; India, South Korea, Japan, Australia, GCC Countries.
The system also provides access to the explanatory notes for WCO and Europe and other countries.
The system allows the user to navigate the code hierarchy and the explanatory notes for code numbers or keywords. This functionality helps in the identification of the correct code for a given product or component.
We provide additional classification data through partnership with Data Providers (e.g. Descartes, Mendel Verlag)
Process and Data Integration
In a typical deployment the MyTower Classification System is integrated with the Product Introduction Workflow and the ERP system. In such a process, the new product data (product reference code, any additional attributes) are loaded from the ERP system at a given moment in the product introduction process into the MyTower GTM Classification Module. As part of the workflow the user classifies the product, and the classification outputs are transmitted to all other systems which require the classification codes. Furthermore, any changes in the product data during the product lifetime are synchronized with the Classification module, which then can evaluate the impact on the existing product classification.
Classification Code Validation
The System validates the existing classification of any product against the most up-to date classification reference data. In case of reference data change the user is alerted about the products impacted. In addition, in case of automatic or semiautomatic classification (see below) the system can compare the actual classification with the automatically determined code and alert the user in case of discrepancies.
Classification by Analogy
In many cases new products or components received from suppliers are new enhanced versions of products or components already existing. To simplify the classification of a new product or component the solution can find existing products which are similar based on their attributes. The system allows to define on which product attributes the similarity analysis needs to be based, e.g. by defining similarity patterns for product reference numbers, or by requiring that certain product attributes need to be equal. If one or more similar products are identified by the system, these products and their classifications are proposed to the user (ranked by similarity) and the user can simply validate this proposal.
Decision Trees
In addition to the standard classification schemas the user can define industry specific decision trees, which guide the user through the classification process in a well-structured and pre-defined way. These types of decision trees usually present multiple levels of questions related to the main product attributes, which need to be reviewed to determine the product classification. The decision trees are typically created in a collaboration of the product and customs experts. Once defined the classification can be carried out in a repeatable way
Semi-Automatic and Automatic Classification
Once a decision tree is established it is possible to define a decision logic at each node of tree, expressed in terms of quantitative or qualitative attributes of the product master data. Based on this decision logic the system can then automatically find the classification code for a new product. The decision logic may determine a partial code (e.g. determine only the 6 digit HS code), and leave the final classification decision to the user (semi-automatic code determination). In other cases, the determination logic may be set up to determine the full code in a national schema (e.g. 10 digits for EU Taric) and this fully automatically determines a valid classification. In any case the codes found automatically or semi-automatically are stored and presented in a separate field and may require approval to become activated as actual classification codes.
Documentation of Classifications
At each product classification, the system stores relevant documents, like Binding Tariff Information Documents, Product Descriptions or images or any other relevant documentation.
The classification process is supported with industry specific Decision Trees, which can be supplied and edited by the user and which guide the user through a structured classification decision process with the help of the relevant documentation as well as by referencing product attributes which determine the product classification.
Workflow and Collaboration
The classification workflow functionality of the solution manages the collaboration of the different stakeholders in the classification process. At each step of the workflow the process can be documented with comments or supporting documentation. The workflow history is available from the product, which was classified, and can be retrieved for auditing purposes. In addition, each classification code change is logged in the system for audit purposes.
Feature reference
Material Classification View
The central workspace for compliance teams, built on a powerful AG Grid interface:
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Customizable columns — customs code, composition, auto code, status, images, labels, and more
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Advanced filtering & bookmarks — save complex filter combinations for recurring tasks (by regulation, status, season, etc.)
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Inline editing — update customs codes directly in the grid
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Product images — visual identification directly in the classification view
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Excel export — bulk data extraction with configurable limits per tenant
Multi-Regulation Support
Manage classifications simultaneously across all required legal regulations:
| Regulation | Description |
|---|---|
| HS EU TARIC | EU 10-digit tariff classification |
| EU CN | 8-digit Combined Nomenclature |
| US HTS / Schedule B | US import/export classification |
| ECCN | Export Control Classification Number |
| HS MX | Mexican customs classification |
| GCC / UAE | Gulf Cooperation Council tariff |
| NCM | Brazilian Nomenclatura Comum do Mercosul |
| Custom regulations | Fully configurable per customer |
Each material holds a distinct code per regulation, with dedicated workflows and validity dates.
Classify by Nomenclature
Browse official customs nomenclatures directly within the platform:
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Navigate the hierarchical nomenclature tree (HS, TARIC, CN, HTS…)
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Search by code or description
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View explanatory notes per heading
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Immediate code assignment to the material
Classify by Decision Tree
Build and maintain custom decision trees to standardize classification:
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Visual tree builder — multi-level trees with questions, answers, and selection logic
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Attribute-based routing — branch on composition, weight, dimensions, or cross-regulation codes
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BTI references — attach Binding Tariff Information, validity dates, and confidence levels to nodes
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Export to Excel — full tree documentation for audit purposes
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Simplified & detailed views — toggle between display modes
Auto Classification Engine
Automate classification of large catalogs:
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Run auto classification — execute decision trees in bulk across an entire regulation
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Accept auto classification — review and accept auto-generated codes selectively or in bulk
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Auto comparison — automatic code-level comparison (HS_10_OK, HS_8_OK, CHECK_OK/KO)
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Mass update — apply status or code changes across hundreds of materials
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Real-time progress tracking during auto classification runs
AI-Powered Classification (Next Generation)
Leveraging AI and Retrieval-Augmented Generation (RAG):
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Standalone & batch AI classification — single product or large volume processing
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Knowledge base — trained on EU BTI decisions, WCO explanatory notes, CN guidance
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Explainability — view reasoning and data sources behind each AI suggestion
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Human-in-the-loop — AI proposes, experts validate
Classification Workflow & Status Management
Fully configurable lifecycle tracking:
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Custom statuses (To Be Checked → Check OK/KO → Validated → Transferred to SAP → To Be Corrected)
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Automated status transitions based on auto classification results
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Manual override for compliance experts
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Transfer validated codes to ERP
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Full audit trail and history for every change
Mass Upload & Bulk Operations
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Excel-based mass upload of customs codes and attributes
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Configurable file size and batch limits per tenant
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Built-in validation and error handling
Labels, Comments & Documentation
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Labels — tag materials, filter by label, mass label actions
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Comments — at material and line level, with history and season-based management
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Documents — attach supporting files to classification records
Typical workflow
- Receive material, composition and product attributes from ERP, PLM or mass upload.
- Assign the relevant regulation or regulations based on company, sales organization or trade context.
- Classify using nomenclature browsing, decision tree, analogy, auto-classification or AI assistance.
- Route exceptions or uncertain cases to experts through collaboration workflows.
- Validate the code, document the decision, and transfer the result back to ERP or downstream modules.
Integrations
| Module | Integration |
|---|---|
| Collaboration | Create classification requests (Information, Nomenclature, Decision Tree, Supplier Data, Correction) via popup — with email notifications in EN/FR, status tracking, and internal/external assignments |
| Master Data | Seamless link to product references, BOM, and compositions with auto-sync |
| Origin | Classification feeds origin determination calculations |
| Dashboard | Visual KPIs and classification progress tracking |
ERP and interface integration
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Inbound — receive material and composition data from SAP and other ERPs
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Outbound — send validated codes back to ERP
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Company code mapping — map SalesOrg/company codes to legal regulations automatically
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Error reporting — automated email alerts on interface issues
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Composition parsing — automatic transformation of concatenated composition fields
Access control
Granular, configurable permissions per user role:
| Capability | Configurable |
|---|---|
| Specific views only | ✅ |
| Specific action buttons | ✅ |
| Specific columns only | ✅ |
| Data lines by regulation/status | ✅ |
| Region-specific roles (US vs. EU) | ✅ |
| Easy role duplication | ✅ |
| Detail tab visibility | ✅ |