Auto-classification of harmonized tariff codes using ChatGPT

The application of artificial intelligence (AI) in diverse disciplines has manifolded in the past years. More recently, ChatGPT launched by open AI has become quite popular in academics as well as in the corporate world. This paper unfolds the extant of ChatGPT utilized during the critical process of determination of the tariff code internationally and nationally. It is argued that due to critical, complex and sensitive nature of tariff classification, deep learning and machine learning techniques can be closer to the correct determination of HS (Harmonized system) codes compare to ChatGPT. Based on multi-steps exploratory nature of experiment conducted over ChatGPT with various chapters, headings and sub-headings of multiple products, our findings show that auto-classification of HS code through ChatGPT has limited scope and level of correctness. In some cases, the output provided by tool is correct to the extent of only heading level and in other cases, the output suggested is completely categorized in an irrelevant HS code. Therefore, the traders, customs authorities, and customs brokers, should not fully rely on this tool as they can face severe consequences in terms of compliance issues and monetary penalties due to incorrect HS code used in a supply chain for trade purposes.