Webinar: Why compliant trade all starts with a code

Product classification is the foundation of everything in global trade from duty calculation and Free Trade Agreement eligibility to export controls and supply chain fluidity.

To help importers, exporters, and compliance professionals get ahead of the complexity, we recently spoke on a webinar with the Chartered Institute of Export & International Trade (CIoE) discussing why compliant trade starts with a code and why getting them right can be tricky.

With expert insights from Liz Davies (Head of Compliance and Classification at TariffTel) and Anna Doy (Customs Practice Director at CIoE), the session delved into the real-world risks of misclassification and how businesses can take a smarter, more systematic approach to getting it right.

Watch the webinar below to hear the full discussion and see why accurate, audit-ready classification is essential.

Why classification is no longer just a compliance check

Classification is a strategic necessity in trade. The consequences of a misclassified product, whether it is overpaid duties, failed FTA claims, or customs delays, can be significant.

The session opened with a statement that resonated with many, “Classification is one of those areas where compliance can come unstuck and where small decisions can have huge regulatory consequences.”

With over 84 million import and export declarations processed in the UK in 2024 alone, every single one hinges on accurate classification. Yet many companies are still using spreadsheets, basic lookup tools, or guesswork, leaving themselves vulnerable to audit, penalties, or border disruptions.

“It all begins with the code”

Liz Davies, who leads TariffTel’s classification team, made it clear: everything in global trade flows from a correct commodity code. “If you start off on the wrong foot,” she said, “it only gets worse from there.” She shared examples that showed that even companies with structured processes are often surprised by the number of classification errors uncovered. “We can find up to 40% of codes are incorrect, even in businesses that believe they have systems in place,” Liz explained.

Seasonal goods were used to show how easily things can go wrong. A Halloween decoration like a plastic rat might be treated as an ornament in the EU but as a seasonal good in the US triggering different duties. “This difference in interpretation across regions adds greater complexity,” Liz said.

Core classification principles: Intended use and essential character

CIoE’s Anna Doy talked about the legal and interpretative framework behind classification, pointing out two fundamental concepts: intended use and essential character. She explained, “Classification is like a motorway—if you take the wrong exit, you end up down a road of over-compliance or under-compliance. Neither of those are ideal.”

These foundational principles aren’t always easy to define especially when dealing with multi-purpose or ambiguous products. Essential character, in particular, is often open to interpretation and can differ between authorities, teams, or even individual classifying officers.

Classification’s expanding role in regulation

The discussion moved into how classification decisions now intersect with trade defence measures, export controls, and new environmental regulations. Anna highlighted the rise of policy instruments like CBAM and EUDR, noting: “Classification is being used more and more as a control point for policy enforcement, not just duty collection.”

She also referenced recent cases where businesses faced hefty penalties for misclassifying goods to avoid anti-dumping measures. The stakes are real. “We’re seeing fines in the millions, and even custodial sentences, where misclassification has been used to deliberately avoid duties,” she said.

Smarter systems for smarter trade: The latest version of the TariffTel platform

To solve these challenges, Liz introduced the new version of TariffTel, a web-based classification platform designed to bring transparency, accuracy, and control to even the most complex of products portfolios.
“We do all the work for you,” Liz said, describing how TariffTel’s system gathers and enriches product data, presents suppliers with relevant classification questions, and applies regulatory logic based on WCO rules, rulings, and regional frameworks.

Everything is stored centrally including product details, classification rationale, supporting documentation, and version history. “It’s a full audit trail. If HMRC audits you, you’ve got all that data at your fingertips,” Liz added.
The platform also now includes new dashboards that allow clients and suppliers to collaborate in real time, ensuring alignment and reducing the friction of back-and-forth information gathering.

TariffTel’s new platform is now live, designed to make classification even faster, more accurate, and fully auditable from day one.

See how TariffTel can support your team, get in touch for a demo.