Harmonized tariff schedule classification using decision tree database

• US 7,792,863 B2
• Filed: 12/24/2003
• Issued: 09/07/2010
• Est. Priority Date: 12/27/2002
• Status: Expired due to Fees

• Current Assignee: Honda Motor Co., Ltd. (Honda Motor Company)
• Original Assignee: Honda Motor Co., Ltd. (Honda Motor Company)
• Inventors: Sweet, Junko, Potts, Tom, Peach, Laurie, Holmes, Frederic, Halterman, Matt, Swirt, Mark, Uy, Anthony
• Primary Examiner(s): Cottingham; John R.
• Assistant Examiner(s): LOVEL, KIMBERLY M
• Application Number:
  US10/745,956
• Publication Number:
  US 20050004894A1
• Time in Patent Office: 2,449 Days
• Field of Search: 707/101
• US Class Current: 707/793
• CPC Class Codes: G06Q 10/063 Operations research, analysis or management
• CPC Class Codes: G06Q 10/08 Logistics, e.g. warehousing, loading or distribution; Inventory or stock management
• CPC Class Codes: G06Q 10/083 Shipping
• CPC Class Codes: G06Q 10/0831 Overseas transactions
• CPC Class Codes: G06Q 10/0875 Itemisation or classification of parts, supplies or services, e.g. bill of materials
• CPC Class Codes: G06Q 20/102 Bill distribution or payments
• CPC Class Codes: G06Q 40/04 Trading; Exchange, e.g. stocks, commodities, derivatives or currency exchange
• CPC Class Codes: G06Q 40/12 Accounting
• CPC Class Codes: Y10S 707/944 Business related
• CPC Class Codes: Y10S 707/99942 Manipulating data structure, e.g. compression, compaction, compilation
• CPC Class Codes: Y10S 707/99945 Object-oriented database structure processing

Abstract

A Harmonized Tariff Schedule Classification system and method is disclosed using an integrated Trade Compliance System (TCS) that includes a decision tree for classifying products based on HTS codes. In one aspect, an analyst may access the TCS and select a commodity group appropriate for the product to be imported. Thereupon, the analyst may navigate through a decision tree which includes questions regarding the nature of the product (e.g., function, composition, etc.). The analyst finally arrives at a specific HTS code, which is assigned to the product. In other aspect, a company utilizing an internal classification system for its products creates an internal-to-commodity group map, thereby enabling an analyst to associate an internal classification with a relevant commodity group for classification purposes. In other aspect, the internal classifications may be mapped directly to an HTS code rather than to a commodity group.

Claims

1. Computer readable storage media which contains a program of instructions which instructions when executed by a computer program under operator control perform the following method of Harmonized Tariff Schedule (“

HTS”

) classification for assigning each of a plurality of imported products to their correct HTS code using a computer system having one or more physical storage devices;

creating and storing on the one or more physical storage devices a decision-tree customs classification database containing a plurality of commodity groups at a top level that each describe a category of products, a plurality of HTS codes at a bottom level that each relate to an applicable tariff rate on a type of product, and one or more intermediate levels that each describe a sub-set of products and that link each of the commodity groups at the top level to a plurality of the HTS codes at the bottom level through a top-down decision tree;

creating a function code database for a business purpose unrelated to HTS commodity group classification or tariff computation and storing it on the one or more physical storage devices, the function code database containing a plurality of unique function codes, each indicative of a product function and each mapped to a sub-set of the products that perform the function indicated by the function code;

creating and storing on the one or more physical storage devices a function-code-to-commodity group database that maps each of the function codes to one of the commodity groups; and

for each of the products using the computer system and the physical storage devices through a user interface;

identifying the function code of the product based on the function code to which the product is mapped in the function code database;

identifying the commodity group that corresponds to the identified function code based on the commodity group to which the identified function code is mapped in the function-code-to-commodity group database;

selecting each intermediate level in the top-down decision tree that is associated with the identified commodity group that best describes the product until arriving at an HTS code at the bottom level of the decision-tree customs classification database; and

assigning the arrived-at HTS code at the bottom level of the decision-tree customs classification database to the product.

2. The computer readable storage media of claim 1 wherein the descriptions in the intermediate levels of the decision-tree customs classification database are each expressed in the form of a question.

3. The computer readable storage media of claim 1 wherein at least some of the descriptions in the intermediate levels of the decision-tree customs classification database are each expressed in the form of an action that a product performs.

4. The computer readable storage media of claim 1 wherein at least some of the descriptions in the intermediate levels of the decision-tree customs classification database are each expressed in the form of a location of a product.

5. The computer readable storage media of claim 1 wherein the selecting each intermediate level in the top-down decision tree includes storing an explanation for why each selection is made.

6. The computer readable storage media of claim 5 further comprising consulting an electronic tool set containing customs rulings to establish the basis for assigning at least some of the HTS codes to a product.

7. The computer readable storage media of claim 5 further comprising updating at least some of the HTS codes electronically from a removable storage medium provided by U.S. Customs.

8. A Harmonized Tariff Schedule (“

HTS”

) classification system for assigning each of a plurality of imported products to their correct HTS code comprising;

a computer system having one or more physical storage devices containing a decision-tree customs classification database containing a plurality of commodity groups at a top level that each describe a category of products, a plurality of HTS codes at a bottom level that each relate to an applicable tariff rate on a type of product, and one or more intermediate levels that each describe a sub-set of products and that link each of the commodity groups at the top level to a plurality of the HTS codes at the bottom level through a top-down decision tree;

a computer system having one or more physical storage devices containing a function code database for a business purpose unrelated to HTS commodity group classification or tariff computation and for storing it, the function code database, the function code database containing a plurality of unique function codes, each indicative of a product function and each mapped to a sub-set of the products that perform the function indicated by the function code;

a computer system having one or more physical storage devices containing a function-code-to-commodity group database that maps each of the function codes to one of the commodity groups; and

a computer system having a user interface configured to permit a user to identify the function code of each product based on the function code to which the product is mapped in the function code database;

a computer system configured to permit a user to identify the commodity group that corresponds to the identified function code based on the commodity group to which the identified function code is mapped in the function-code-to-commodity group database;

a computer system configured to permit a user to select each intermediate level in the top-down decision tree that is associated with the identified commodity group that best describes the product until arriving at an HTS code at the bottom level of the decision-tree customs classification database; and

a computer system configured to permit a user to assign the arrived-at HTS code at the bottom level of the decision-tree customs classification database to the product.

9. The HTS classification system of claim 8 wherein the descriptions in the intermediate levels of the decision-tree customs classification database are each expressed in the form of a question.

10. The HTS classification system of claim 8 wherein at least some of the descriptions in the intermediate levels of the decision-tree customs classification database are each expressed in the form of an action that a product performs.

11. The HTS classification system of claim 8 wherein at least some of the descriptions in the intermediate levels of the decision-tree customs classification database are each expressed in the form of a location of a product.

12. The HTS classification system of claim 8 wherein the computer system is configured to permit a user to store an explanation for why each selection is made.

13. The HTS classification system of claim 8 further comprising consulting an electronic tool set containing customs rulings to establish the basis for assigning at least some of the HTS codes to a product.

14. The HTS classification system of claim 8 further comprising updating at least some of the HTS codes electronically from a removable storage medium provided by U.S. Customs.

15. Computer readable storage media which contains a program of instructions which instructions when executed by a computer program under operator control perform the following method of Harmonized Tariff Schedule (“

HTS”

) classification for assigning each of a plurality of imported products to their correct HTS code;

creating a decision-tree customs classification database containing a plurality of commodity groups at a top level that each describe a category of products, a plurality of HTS codes at a bottom level that each relate to an applicable tariff rate on a type of product, and one or more intermediate levels that each describe a sub-set of products and that link each of the commodity groups at the top level to a plurality of the HTS codes at the bottom level through a top-down decision tree;

creating a function code database for a business purpose unrelated to HTS commodity group classification or tariff computation, the function code database containing a plurality of unique function codes, each indicative of a product function and each mapped to a sub-set of the products that perform the function indicated by the function code;

creating a function-code-to-commodity group database that maps each of the function codes to one of the commodity groups; and

for each of the products;

permitting a user to identify the function code of the product based on the function code to which the product is mapped in the function code database;

identifying the commodity group that corresponds to the identified function code based on the commodity group to which the identified function code is mapped in the function-code-to-commodity group database;

permitting a user to select each intermediate level in the top-down decision tree that is associated with the identified commodity group that best describes the product until arriving at an HTS code at the bottom level of the decision-tree customs classification database; and

assigning the arrived-at HTS code at the bottom level of the decision-tree customs classification database to the product.

16. The computer readable storage media of claim 15 wherein the descriptions in the intermediate levels of the decision-tree customs classification database are each expressed in the form of a question.

17. The computer readable storage media of claim 15 wherein at least some of the descriptions in the intermediate levels of the decision-tree customs classification database are each expressed in the form of an action that a product performs.

18. The computer readable storage media of claim 15 wherein at least some of the descriptions in the intermediate levels of the decision-tree customs classification database are each expressed in the form of a location of a product.

19. The computer readable storage media of claim 15 wherein the permitting a user to select each intermediate level in the top-down decision tree includes permitting the user to store an explanation for why each selection is made.

20. The computer readable storage media of claim 15 further comprising consulting an electronic tool set containing customs rulings to establish the basis for assigning at least some of the HTS codes to a product.

21. The computer readable storage media of claim 15 further comprising updating at least some of the HTS codes electronically from a removable storage medium provided by U.S. Customs.