Compliance Declaration and Automation — Automated Customs Reporting System Based on HS Code and Tariff Calculation

Abstract
As international trade regulations become more stringent, cross-border businesses face increasing pressure to ensure accurate customs declarations. Errors in declarations can lead not only to delays but also to significant financial penalties. This article presents an automated customs reporting system built on the LuckData API, which extracts key product data (origin, HS code, pricing, etc.) and integrates with tariff databases such as USITC to generate compliant tariff reports. This system significantly enhances declaration efficiency, reduces manual errors, and serves as a vital step toward digital compliance in cross-border operations.

1. Policy Background: The High Cost of Errors in Declaration

Global customs authorities are tightening regulations and increasing the scrutiny of declarations, especially concerning product classification (HS Code), origin, and customs value. In the United States, for example, incorrect declarations can result in penalties of up to 25% of the product's value. Moreover, once flagged for inspection, the clearance process may be severely delayed.

Inconsistent or incorrect data can trigger a range of issues, such as:

• Denial of export tax rebates

• Increased frequency of customs audits

• Inclusion in high-risk importer lists

• Lowered corporate compliance ratings

To mitigate these risks, it is essential for companies to establish a standardized, automated, and audit-friendly declaration system.

2. System Functions and Core Architecture

Functional Goals

1. Automatically extract the following information per SKU:

   • HS code

   • Country of Origin

   • Price (FOB/CIF)

2. Retrieve the latest import tariff rates for destination countries

3. Generate customs declaration reports in standardized Excel or PDF formats

System Features

• Supports batch processing and real-time data integration

• Compatible with product data from various platforms

• Ready for integration with ERP / CRM systems for end-to-end customs automation

3. Technical Implementation

1. Data Acquisition via LuckData API

LuckData provides detailed product information from major e-commerce platforms like Amazon and Walmart. These include product category, origin, price, and other relevant metadata, which can be mapped to HS codes.

API example:

GET https://luckdata.io/api/walmart-API/get_vwzq?url=https://www.walmart.com/ip/EXAMPLE
Headers: { "X-Luckdata-Api-Key": "your_key" }

Sample response:

{
"sku": "123456",
"price": 29.99,
"origin": "Vietnam",
"category": "Men's T-Shirts",
"hs_code": "6109.10.0012"
}

Where necessary, the system can leverage NLP models to infer missing attributes from product titles or descriptions to improve data completeness.

2. Tariff Rate Retrieval via USITC or Third-Party APIs

The system can integrate with the United States International Trade Commission (USITC) or other third-party APIs to query applicable tariffs based on HS codes and destination countries. Sample implementation:

def get_tariff_rate(hs_code, country='CN'):
response = requests.get(f"https://example.com/get_rate?hs={hs_code}&country={country}")
return float(response.json()['rate'])

It can also dynamically adjust rates based on free trade agreements such as USMCA or RCEP, depending on the origin country.

3. Report Generation: Pandas + Excel/PDF

The extracted data is compiled into structured reports in Excel or PDF formats, suitable for direct submission or internal compliance use.

import pandas as pd
import requests
headers = {'X-Luckdata-Api-Key': 'your_key'}
url = 'https://luckdata.io/api/walmart-API/get_vwzq?url=product_link'
details = requests.get(url, headers=headers).json()
def get_tariff_rate(hs_code):
return 12.5  # Example static value; replace with live API result
df = pd.DataFrame([{
'SKU': details['sku'],
'HS_Code': details['hs_code'],
'Origin': details['origin'],
'Price': details['price'],
'Tariff_Rate': get_tariff_rate(details['hs_code']),
}])
df['Duty'] = df['Price'] * df['Tariff_Rate'] / 100
df.to_excel('customs_declaration.xlsx', index=False)

For PDF outputs, libraries like reportlab, WeasyPrint, or openpyxl can be used to generate custom reports formatted to meet various customs requirements.

4. Practical Value and Impact

Increased Efficiency

• Automates the previously manual entry of product and tariff data, boosting declaration speed by over 5x

• Supports batch import and processing of SKUs, reducing labor intensity

• Minimizes errors from manual data entry and formatting

Reduced Risk

• Standardized data extraction ensures <1% error rate

• Real-time tariff integration avoids incorrect duty calculations

• Reduces reliance on individual customs knowledge and manual research

Audit-Friendly

• Every data point in the report is traceable to original API responses

• Supports version control and logging for compliance auditing

• Enables easy export of historical records during internal or external audits

Scalability

• Modular design allows easy expansion to additional destination countries and customs databases

• Additional fields (e.g., packaging details, invoice numbers) can be added as needed

• Can be extended into a full export/import compliance reporting system

5. Future Upgrades

Conclusion

Customs compliance is no longer just a procedural necessity—it is a strategic imperative for companies operating in the global market. Through the integration of LuckData APIs and real-time tariff data sources, enterprises can establish a robust, efficient, and traceable digital customs reporting system. In an era of increasingly complex trade environments, early adoption of such digital solutions enables companies to reduce risk, maintain compliance, and gain a competitive edge.

Articles related to APIs :

• Supply Chain Early Warning System Design – API-Driven Tariff Risk Intelligence Monitoring

• Building the "Tariff Impact Index" — Integrating Multi-Platform API Data

• Insight into the Price Storm Amid Tariff Wars: Building an E-commerce Price Monitoring System with LuckData API