ChatGPT is an AI (artificial intelligence) based chatbot and is designed to answer questions and provide solutions to problems. The answers that ChatGPT gives are formulated in human language, making it very easy to communicate with the chatbot.
We have found that ChatGPT can also be a very suitable tool to make the process of product classification easier. In the chatbot you can send the link of the product for which you need a commodity code and ask which commodity code belongs to the product. The chatbot will immediately search for the necessary information and will – based on a short explanation – generate a commodity code. The best of all is that ChatGPT is very easy to use, which can save a lot of time.
How does it work? Let's take the Remington S8500 curling iron as an example, which can be found on bol.com. If you send ChatGPT the link to this product, it will immediately retrieve the necessary information and give you the commodity code. Here is the result:
The TARIC code for the Remington S8500 Curling Iron is 8516320000. This is based on the product description and may vary depending on various factors, so it is always important to check the exact product specifications and consult a professional classification specialist if necessary to ensure that the correct code is used.
This TARIC code seems perfectly fine. So that looks promising. But caution is advised because ChatGPT also has big disadvantages. The chatbot is still under development and can therefore hallucinate or make other mistakes. Also, ChatGPT is trained on a dataset that stops at information from the year 2021. This means that the information that ChatGPT provides is based on what was available on the internet up to that time. New developments in the landscape of classification, such as case law and classification regulations, will therefore not always be picked up by ChatGPT. The chatbot can therefore certainly not be used as a complete replacement for human expertise.
But even when asking for information that is not directly dependent on the latest developments, things can go wrong. If you ask ChatGPT to classify a conservatory, you get the following answer:
The commodity code of a conservatory can vary depending on various factors, such as the dimensions, the materials used and the country of origin. In general, however, a conservatory can be classified under commodity code 9406.00.80 in the Harmonized System (HS) of the World Customs Organization (WCO). This is the code for "Buildings and structures, of wood", where the conservatory is considered a subcategory of "other buildings and structures".
However, if the conservatory is not made entirely of wood, it can be classified under a different commodity code, such as 7610.90.90 for "Other constructions and parts thereof, of aluminium" or 7308.90.90 for "Other constructions and parts thereof, of iron or steel".
It is important to note that the exact commodity code may vary depending on the country or region where the conservatory is imported or exported. It is therefore important to check the specific commodity code that applies to the country where the trade takes place.
The chatbot thus indicates that a wooden conservatory should be classified differently from an aluminum or steel conservatory. This is not correct. A conservatory is a prefabricated construction that belongs in heading 9406. All conservatories can be classified under this heading, regardless of the material they are made of. In addition, under HS code 7610 9090, a TARIC code must also be chosen, with the possibility that anti-dumping duty is payable.
It is therefore important not to become too dependent on ChatGPT and always do your own research to make sure that the information is correct and all possibilities have been considered.
In short, ChatGPT is a handy tool for companies that struggle with product classification. It is fast, easy to use and can help to simplify the work. However, always ask the question whether speed in determining the code or the correctness of the code is most important when determining a commodity code. As we say at Customs Knowledge: Are we going for speed or are we going for customized work? As you are used to from us, we go for customized work. Of course, ChatGPT will certainly get the attention it deserves. For questions or comments on this subject, you can contact Bram vanBreukelen or Rianne Jorritsma.