Global Classification is the process of classifying products for the purpose of complying with customs authorities, qualifying for free trade agreements and filing entries to customs during the importation or exportation of those products.
Companies need to establish data management standards to help reduce inaccurate classification, strengthen the exchange of data between trading partners, and provide version control in order to track all changes that take place.
[citation needed] With an automated Global Classification solution, companies can collect, store, and access classification data in one centralized located at both a global level using the World Customs Organization (WCO) 6-digit Harmonized Schedule Numbers and with multiple country specific views tailored to the country of interest.
As a result, the centrally controlled classification database reduces errors, increases internal and external communication, strengthens compliance, and improves the timeliness of the information shared with external trading partners.
Providing on-demand availability to the classification database, via the web, ensures that every trading partner has access to and uses the same classification data at every stage in the supply chain, minimizing risks and/or delays or possible fees from Customs.