Profile | Tarifflo

Profile | Tarifflo

by

by

The StartOps Team

Published

Published

Nov 15, 2024

Nov 15, 2024

TLDR:

Tarifflo uses proprietary algorithms to classify products with their correct international tariff codes (HS/HTS codes) for import/export compliance. They achieve significantly higher accuracy than human experts and existing automated solutions.

Basic info

  • Year founded: 2024

  • Team size: 2

  • HQ location: Utah

  • Regions served: USA + 15 other countries


What's the backstory?

  • Founder Bryce Judy is a data scientist who previously worked at KPMG in trade compliance — specifically on classification of medical devices.

  • After seeing KPMG’s AI algorithm producing a low accuracy rate, he worked with a PhD mentor in computational mathematics to develop a more advanced algorithm. This new algorithm achieves over 90% alignment with CBP court rulings for HTS code classifications, compared to the typical 70% accuracy rate achieved by professional brokers manually.

  • He recently partnered with business co-founder Joseph Zhang to help scale the business.


Who do they work with?

  • Any importer who has to classify a large number of items with HTS codes each year (usually 500+/year)

  • Works equally well for enterprise, manufacturers, distributors, consumer brands, 3PLs, customs brokers, etc.


What problems do they solve?

  • Today, those seeking to assign harmonized codes have 2 options:

    • Automated solutions like the WTO free HS code suggester (12% accurate), or private solutions like Zonos (~40% acccurate). The problem is that the low accuracy rate means human intervention is still needed for review (or the company risks failing an audit.)

    • Human-researched solutions like KPMG. The problem is that this is expensive — often on the order of $100/classification.

  • Tarifflo is a better automated solution, achieving greater than 90% accuracy vs. backtest benchmarks.


How does it work?

  • The input a simple CSV input with product name and brief description for each product. (Getting this data into a clean format is the longest part of the process.)

  • Tarifflo users a combination of proprietary algorithms to produce HTS codes for each item within minutes. They also provide a written justification for the claim, and any prior court cases that support the claim.


What makes it different?

  • It’s wildly more accurate than other automated HTC classification services.

  • It returns not only the HTS code, but also a justification (backed by court rulings)

  • They currently support classification not just for the US, but also 15 other countries.


How does pricing work?

  • Pricing runs from $2,500 for 500 code assignments, through the high six figures depending on volume

  • Billing is on an annual subscription basis


Case studies

  • Currently conducting large-scale tests with some of the biggest logistics firms in the US

  • Building out multi-country classification capabilities for a customer operating in 16 different countries


Want to learn more or get in touch? Check out their page on the StartOps Directory.

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