{"id":1041,"date":"2023-05-01T10:01:10","date_gmt":"2023-05-01T10:01:10","guid":{"rendered":"https:\/\/artelnics.com\/?post_type=case_studies&#038;p=1041"},"modified":"2026-06-30T14:07:42","modified_gmt":"2026-06-30T14:07:42","slug":"hscodes","status":"publish","type":"case_studies","link":"https:\/\/artelnics.com\/case_studies\/hscodes\/","title":{"rendered":"Automation of HS codes assignment for Nestle"},"content":{"rendered":"<style id=\"atl-opennn-style\">@import url('https:\/\/fonts.googleapis.com\/css2?family=Roboto:wght@400;500;700;800;900&display=swap');\/* codex-artelnics-opennn-visual-sync-v5 *\/:root{--opennn-navy:#1E5374;--opennn-blue:#1E5374;--opennn-sky:#56A1C8;--opennn-sky-light:#B6D7E7;--opennn-wash:#EAF3F9;--opennn-ink:#212121;--opennn-text:#212121;--opennn-muted:#5F6368;--opennn-line:#D7E4EA;--opennn-soft:#F5F9FC;--opennn-white:#FFFFFF;--artelnics-blue:var(--opennn-blue);--artelnics-cyan:var(--opennn-sky);--artelnics-deep:var(--opennn-navy);--artelnics-navy:var(--opennn-navy);--artelnics-bg:var(--opennn-soft);--artelnics-text:var(--opennn-text);--artelnics-muted:var(--opennn-muted);--artelnics-line:var(--opennn-line);--artelnics-soft:var(--opennn-soft);--artelnics-white:var(--opennn-white);--content-width:1180px;}:root{--artelnics-blue:#56A1C8;--artelnics-cyan:#56A1C8;--artelnics-deep:#1E5374;--home-blue:#56A1C8;--home-sky:#56A1C8;--home-light:#56A1C8;--home-navy:#1E5374;}body{font-family:\"Roboto\",\"Segoe UI\",Arial,sans-serif;}h1,h2,h3,h4,h5,.atl-eyebrow,.eyebrow,.button,.button-primary,.site-menu,.brand{font-family:\"Roboto\",\"Segoe UI\",Arial,sans-serif;}.site-header{background:rgba(26,74,102,.96);}.site-menu a:hover{color:#56A1C8;}.site-menu .menu-contact a{background:#56A1C8;}.site-menu .menu-contact a:hover{background:#56A1C8;}.atl-hero,.single-hero,.page-hero,.atl-home-hero{background:#1E5374;}.atl-eyebrow,.single-hero .eyebrow,.page-hero .eyebrow{color:#B6D7E7;font-weight:600;}.atl-card{border:1px solid #B6D7E7;border-radius:10px;box-shadow:0 16px 42px rgba(30,83,116,.08);}\/* codex-artelnics-opennn-visual-sync-v5-overrides-start *\/html,body,#page,.site,.site-main,#content,.entry-content{background:#F5F9FC!important}body,.atl-home,.atl-section,.atl-content-section,.atl-case{font-family:\"Roboto\",\"Segoe UI\",Arial,sans-serif!important;color:#212121!important;font-size:17px;line-height:1.65}.site-header{background:rgba(26,74,102,.96)!important;border-bottom:1px solid rgba(255,255,255,.1)!important;box-shadow:0 10px 30px rgba(6,27,52,.18)!important}.site-menu a{color:#FFFFFF!important;font-family:\"Roboto\",\"Segoe UI\",Arial,sans-serif!important;font-size:16px!important;font-weight:800!important}.site-menu a:hover{color:#56A1C8!important}.site-menu .menu-contact a,.site-menu .menu-github a{background:#56A1C8!important;color:#FFFFFF!important;border-radius:8px!important}.site-footer{background:#1E5374!important;color:rgba(255,255,255,.84)!important}h1,h2,h3,h4,h5,h6,.atl-eyebrow,.eyebrow,.button,.atl-home-button,.site-menu,.brand{font-family:\"Roboto\",\"Segoe UI\",Arial,sans-serif!important;letter-spacing:0!important}.atl-home-hero,.atl-hero,section.atl-hero{background:radial-gradient(circle at 78% 20%,rgba(86,161,200,.22),transparent 24%),linear-gradient(135deg,#1E5374 0%,#1E5374 60%,#1E5374 100%)!important;color:#FFFFFF!important}.atl-home-eyebrow,.atl-eyebrow,section.atl-hero .atl-eyebrow{color:#B6D7E7!important;font-size:14px!important;font-weight:600!important;letter-spacing:.08em!important}.atl-home-hero h1,.atl-hero h1,body section.atl-hero .atl-hero-inner>h1,body .entry-content section.atl-hero h1{color:#FFFFFF!important;-webkit-text-fill-color:#FFFFFF!important;opacity:1!important;font-size:54px!important;font-weight:700!important;line-height:1.08!important}.atl-home-lead,.atl-hero p,body section.atl-hero p:not(.atl-eyebrow){color:#EAF3F9!important;-webkit-text-fill-color:#EAF3F9!important;font-size:18px!important;line-height:1.7!important}.atl-home-section,.atl-section,.atl-home-cta,.atl-home-section-soft,.atl-home-section-dark,.atl-section-soft{background:#F5F9FC!important;color:#212121!important}.atl-home-section-head h2,.atl-section-header h2,.atl-home-cta-box h2,.atl-content-section h1{color:#212121!important;font-size:36px!important;font-weight:700!important;line-height:1.15!important}.atl-home-section-head p,.atl-section-header p,.atl-home-cta-box p,.atl-content-section p{color:#5F6368!important;font-size:17px!important;line-height:1.7!important}.atl-card,.atl-home-service,.atl-home-product,.atl-home-case,.atl-home-industry,.atl-home-programme{background:#F5F9FC!important;color:#212121!important;box-shadow:-12px -12px 24px rgba(255,255,255,.96),12px 12px 24px rgba(30,83,116,.13)!important}.atl-card h3,.atl-home-service h3,.atl-home-product h3,.atl-home-case h3,.atl-home-programme h3{color:#212121!important;font-size:22px!important;font-weight:800!important;line-height:1.15!important}.atl-card p,.atl-home-service p,.atl-home-product p,.atl-home-case p,.atl-home-programme p{color:#5F6368!important;font-size:17px!important;line-height:1.58!important}.atl-card a,.atl-home-product a,.atl-home-case a,.text-link{color:#56A1C8!important;font-family:\"Roboto\",\"Segoe UI\",Arial,sans-serif!important;font-weight:700!important}.atl-home-button,.button,.button-primary,.button-secondary,body a.button,body a.button-primary,body a.button-secondary{background:#56A1C8!important;color:#FFFFFF!important;font-family:\"Roboto\",\"Segoe UI\",Arial,sans-serif!important;font-size:17px!important;font-weight:800!important;border-radius:10px!important}.atl-home-button:hover,.button:hover,.button-primary:hover,.button-secondary:hover{background:#56A1C8!important;color:#FFFFFF!important}.atl-home-service .atl-service-icon{color:#56A1C8!important}.atl-case{color:#212121!important;max-width:980px}.atl-case h2{color:#3B86AD!important;font-family:\"Roboto\",\"Segoe UI\",Arial,sans-serif!important;font-size:34px!important;font-weight:700!important;line-height:1.18!important}.atl-case h3,.atl-case .card strong{color:#212121!important;font-family:\"Roboto\",\"Segoe UI\",Arial,sans-serif!important}.atl-case p,.atl-case li{color:#212121!important;font-size:19px!important;line-height:1.62!important}.atl-case .lead{color:#5F6368!important;font-size:20px!important;line-height:1.5!important}.atl-case .tag{background:#EAF3F9!important;color:#1E5374!important;border-color:#D7E4EA!important}.atl-case .card{background:#FFFFFF!important;border-color:#D7E4EA!important;border-radius:8px!important}.atl-case figcaption{color:#5F6368!important}@media(max-width:767px){.atl-home-hero h1,.atl-hero h1,body section.atl-hero .atl-hero-inner>h1{font-size:38px!important}.atl-home-section-head h2,.atl-section-header h2,.atl-home-cta-box h2,.atl-content-section h1{font-size:28px!important}.atl-case h2{font-size:28px!important}.atl-case p,.atl-case li{font-size:17px!important}.atl-home-lead,.atl-hero p,body section.atl-hero p:not(.atl-eyebrow){font-size:17px!important}}.cky-consent-container{left:auto!important;right:40px!important;bottom:40px!important;max-width:440px!important;width:min(440px,calc(100vw - 32px))!important;z-index:99999999!important}.cky-consent-container .cky-consent-bar{background:#FFFFFF!important;border:1px solid #D7E4EA!important;border-radius:8px!important;box-shadow:0 18px 42px rgba(30,83,116,.16)!important;color:#212121!important;padding:24px 26px!important}.cky-title,.cky-notice .cky-title{color:#212121!important;font-family:\"Roboto\",\"Segoe UI\",Arial,sans-serif!important;font-size:18px!important;font-weight:800!important;line-height:1.25!important}.cky-notice-des,.cky-notice-des *{color:#5F6368!important;font-family:\"Roboto\",\"Segoe UI\",Arial,sans-serif!important;font-size:14px!important;line-height:1.55!important}.cky-notice-group{display:block!important}.cky-notice-btn-wrapper{display:flex!important;flex-wrap:nowrap!important;gap:10px!important;justify-content:space-between!important;margin-top:18px!important}.cky-btn{flex:1 1 0!important;min-width:0!important;width:auto!important;min-height:44px!important;padding:0 20px!important;border-radius:0!important;font-family:\"Roboto\",\"Segoe UI\",Arial,sans-serif!important;font-size:14px!important;font-weight:700!important}.cky-btn-accept{background:#1E5374!important;border-color:#1E5374!important;color:#FFFFFF!important}.cky-btn-reject,.cky-btn-customize{background:#FFFFFF!important;border:1px solid #1E5374!important;color:#1E5374!important}.cky-btn:hover{opacity:1!important;box-shadow:none!important}@media(max-width:767px){.cky-consent-container{left:16px!important;right:16px!important;bottom:16px!important;width:auto!important;max-width:none!important}.cky-notice-btn-wrapper{flex-direction:column!important}.cky-btn{width:100%!important}}\/* codex-artelnics-opennn-visual-sync-v5-overrides-end *\/<\/style>\n<section>An increasing number of businesses are choosing to automate their manual processes. This allows them to streamline their workflows, become more productive, cut costs, and reduce human error. Manual data entries fall victim to human error. Moreover, they consume a lot of time, which could be used for other, more complex tasks. This is why a Nestle decided to invest in automating the HS assignment process for each of its products.<\/section>\n<section id=\"HS codes\">\n<hr \/>\n<h2>HS codes<\/h2>\n<p>The HS code is an international standardized system of numbers to classify traded products. In an international shipment, every item must have an HS code and should be placed in the Commercial Invoice. The code must be correctly introduced to determine the number of import duties or other taxes the company must pay.<\/p>\n<p>In the following graph, we can observe how the HS codes are organized:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/www.artelnics.com\/images\/hscodes.png\" width=\"600px\"  alt=\"HS codes assignment workflow\" \/><\/p>\n<p>As we can see, each pair of numbers refers to some specific information about the product.<\/p>\n<\/section>\n<section id=\"algorithm\">\n<hr \/>\n<h2>Machine learning algorithm<\/h2>\n<p>This project aims to create a machine learning model to automatically assign the HS code to each product based on its description. By using this algorithm, it is possible to eliminate manual data entry. This simplifies the work of warehouse employees, reduces errors in assigning HS codes to products, and saves time and costs.<\/p>\n<p>The algorithm consists of a machine learning model that describes a product and assigns the proper HS code by using specific rules. We can observe this process in the following diagram:<\/p>\n<p><img decoding=\"async\" class=\"aligncenter\" src=\"https:\/\/www.artelnics.com\/images\/model_HScodes.svg\" width=\"700px\"  alt=\"Machine learning model for HS codes assignment\" \/><\/p>\n<p>First, the algorithm is trained using millions of product descriptions and their matching HS codes, employing machine learning. Then, it is possible to build a mathematical model that consists of specific rules for the HS code assignment. These rules are a single word or a combination of terms contained in the product\u2019s description and must be unique for each product.<\/p>\n<\/section>\n<section>\n<hr \/>\n<h2>Conclusions<\/h2>\n<p>Before applying artificial intelligence to their HS code assignment process, the company spent a lot of time on this, and the codes were more frequently incorrect.<\/p>\n<p>However, by using Artelnics\u2019 machine learning technology, this company managed to eliminate manual data entry, reduce human errors, and improve efficiency.<\/p>\n<\/section>\n","protected":false},"excerpt":{"rendered":"<p>An increasing number of businesses are choosing to automate their manual processes. This allows them to streamline their workflows, become more productive, cut costs, and reduce human error. Manual data entries fall victim to human error. Moreover, they consume a lot of time, which could be used for other, more complex tasks. This is why [&hellip;]<\/p>\n","protected":false},"featured_media":626,"parent":0,"menu_order":0,"template":"","categories":[],"class_list":["post-1041","case_studies","type-case_studies","status-publish","has-post-thumbnail","hentry"],"acf":[],"_links":{"self":[{"href":"https:\/\/artelnics.com\/api\/wp\/v2\/case_studies\/1041","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/artelnics.com\/api\/wp\/v2\/case_studies"}],"about":[{"href":"https:\/\/artelnics.com\/api\/wp\/v2\/types\/case_studies"}],"version-history":[{"count":11,"href":"https:\/\/artelnics.com\/api\/wp\/v2\/case_studies\/1041\/revisions"}],"predecessor-version":[{"id":3048,"href":"https:\/\/artelnics.com\/api\/wp\/v2\/case_studies\/1041\/revisions\/3048"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/artelnics.com\/api\/wp\/v2\/media\/626"}],"wp:attachment":[{"href":"https:\/\/artelnics.com\/api\/wp\/v2\/media?parent=1041"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/artelnics.com\/api\/wp\/v2\/categories?post=1041"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}