Case studies

Retail

Our experience in supporting the retail sector with customs classification spans UK high street retailers, to major international operations and facilitating expansion into new markets. We support fashion, homewares, department stores, supermarkets and grocery stores in reaching the highest standards in tariff code accuracy and compliance.

Our retail expertise

Classifying products for retail needs a responsive and thorough system to make sure goods reach shelves on time for key sales periods like Easter, Halloween and importantly, Christmas.

The festive goods sold in these periods often present challenges. Namely, if they meet the criteria to be correctly included into a specific ‘festive’ heading under the tariff book and align with EU or US classification guidelines. Often, many products fall into a gray area that need resolving by our team of experts.

Additionally, the challenge of classifying multiple product sets with multi-tariffs codes can easily lead to misclassification. For example, a cooking utensil set. Our team knows the GRI’s ruling to determine the correct tariff code and ensure compliance.

For retailers, an effective classification system can save time and prevent costly errors. Our TariffTel system delves into the intricate terms associated with products, and we’ve designed our Item Types to be user-friendly. We eliminate the need for extensive research to ensure classification is accurate, quick and adheres to regulatory standards.

Our process for retail classification

Analysis

Build your knowledge base – Analyse the tariff book, read the rules, and review the rulings

Solution

Know your product – Find out the key product details including raw materials, country of origin, production processes, and packaging details

Implementation

Keep up to date – Review tariff book changes and check for updates

Key Stats

40%

Of tariff codes used are incorrect

10-15%

Of international shipments are delayed due to customs issues which include incorrect tariff codes (Source: American Association of Exporters and Importers)

40%

Increase in admin time to resolve tariff classification errors (Source: Baker McKenzie Law)

4%

Fines of up to 4 x the duty loss or $500k per incorrect shipment (Source: US Customs and Border Protection guidelines)

Featured customer:

BOOHOO GROUP’S US MARKET EXPANSION MADE POSSIBLE BY CUSTOMS CLASSIFICATION TRANSFORMATION

Challenge

In 2022, boohoo group’s aim was to boost sales in the US and streamline the delivery of its fashion products to their new US distribution centre from the UK. Previously, orders to the US faced a lengthy delivery time of eight to ten days and the team used a legacy system to assign tariff codes which relied on traditional, paper-based processes and decentralised data systems.

Boohoo group set out to transform their approach to customs classification with TariffTel. Their goal was to ensure the smooth and quick entry of millions of units into the US. Their first challenge was to quickly and accurately classify thousands of SKU’s, a complicated task given boohoo group stored only partial product master data. Further difficulty lay with the complexities of the US customs controls which vary significantly to the UK.

A new approach was needed that prioritised customs compliance and accuracy.

Why TariffTel

Boohoo group chose the precision classification platform TariffTel. This provided a centralised approach to assigning US tariff codes, capturing and storing essential product data which is crucial for accurate classification. The TariffTel team had less than four months to classify thousands of SKU’s from various suppliers.

TariffTel engaged suppliers for specific information, including size, weight, fabric composition, product images, and supporting documentation. Only TariffTel could facilitate this level of digital transformation that allowed Boohoo group to achieve a more efficient and compliant process in classification.

Results

100%

Compliance Record

90%

Accuracy of its product master data

TariffTel enabled boohoo group to accurately classify and ship all necessary SKUs to the US from the UK in the four month timeframe. The team achieved a 100% compliance record on 20,000 SKUs, transforming the way US operations and classifications were conducted. The initiative reduced transit times, enabling boohoo group to fulfil demand more precisely in the growing US market. Boohoo group can now trust the 100% accuracy of its product master data, thanks to quality assurance checks and supplier integration.

This digital transformation now serves as a benchmark for expansion into other overseas markets.

“This solution was transformative for boohoo group, we capture all the data required from suppliers for classification that produces the full 10 digit US HTS code. This innovation has ensured the smooth flow of goods through US Customs and since the distribution centre opened we have had zero shipment delays on products entering the US.”

David James

Group Supply Chain Director at boohoo group PLC