Tarifflo Company Profile

Background

Company Overview

Tarifflo, founded in 2024 and headquartered in Provo, Utah, specializes in providing AI-driven solutions for Harmonized Tariff Schedule (HTS) code classification. The company's mission is to streamline and enhance the accuracy of product classifications for international trade compliance, thereby reducing compliance risks and operational costs for businesses. Tarifflo's vision is to become the leading provider of automated tariff classification services, setting new industry standards through technological innovation.

Key Strategic Focus

Core Objectives and Specialization

Tarifflo focuses on delivering highly accurate HTS code classifications by leveraging advanced artificial intelligence algorithms. The company's proprietary technology is designed to achieve over 90% alignment with U.S. Customs and Border Protection (CBP) court rulings, surpassing the typical 70% accuracy rate achieved by professional brokers manually. This high level of precision aims to reduce compliance risks, such as fines and shipment delays, and to decrease the costs associated with manual classifications.

Primary Markets

Tarifflo serves a diverse clientele involved in international trade, including:

High-Volume Importers: Businesses managing large or frequently changing product catalogs (100+ SKUs).

Global Logistics Teams: Organizations coordinating shipments across multiple countries and Incoterms, seeking to reduce manual data entry.

Trade Compliance Departments: Departments aiming to ensure accurate, consistent HTS classifications and maintain audit-ready documentation.

Retailers & E-Commerce Brands: Companies expanding internationally with diverse product lines and complex duty calculations, requiring smoother cross-border shipping.

Manufacturers & Distributors: Entities centrally classifying products from various suppliers and regions to keep costs in check.

Freight Forwarders & Customs Brokers: Service providers looking to automate classification tasks, reduce turnaround times, and offer a higher level of service to clients.

Financials and Funding

Funding History

As of the latest available information, specific details regarding Tarifflo's funding history, including total funds raised, recent funding rounds, and notable investors, have not been publicly disclosed.

Pipeline Development

Product Development and Milestones

Tarifflo's primary offering is its AI-driven HTS code classification platform. The company has been conducting large-scale tests with some of the biggest logistics firms in the U.S. and is building out multi-country classification capabilities for customers operating in 16 different countries. These developments indicate a strategic focus on expanding the platform's capabilities and market reach.

Technological Platform and Innovation

Proprietary Technologies

Tarifflo's platform utilizes advanced AI algorithms developed to enhance the accuracy of HTS code classifications. The technology was created by founder Bryce Judy, a data scientist with experience in trade compliance at KPMG, who collaborated with a PhD mentor in computational mathematics. The resulting algorithm achieves over 90% alignment with CBP court rulings, significantly outperforming existing automated solutions and human experts.

Scientific Methodologies

The platform combines cutting-edge AI technology with human expertise to optimize tariff classifications and reclassifications for Post Summary Corrections. It provides written justifications for each classification, backed by relevant legal references, including citations to chapter notes, section notes, explanatory notes, and CROSS rulings.

Leadership Team

Executive Profiles

Bryce Judy, Co-Founder and CEO: A data scientist with prior experience at KPMG in trade compliance, specifically on the classification of medical devices. He developed Tarifflo's advanced AI algorithm to improve HTS code classification accuracy.

Joseph Zhang, Co-Founder: Partnered with Bryce Judy to help scale the business.

Leadership Changes

As of the latest available information, there have been no significant changes or appointments within Tarifflo's leadership team.

Competitor Profile

Market Insights and Dynamics

The market for HTS code classification services is integral to international trade compliance, with businesses seeking solutions that offer high accuracy and efficiency. Traditional methods involve manual classifications by customs brokers, which can be costly and time-consuming. Automated solutions exist but often suffer from low accuracy rates, necessitating human intervention and increasing the risk of compliance issues.

Competitor Analysis

Key competitors in the HTS code classification space include:

Zonos: Offers automated HTS code classification services with an accuracy rate of approximately 40%.

WTO Free HS Code Suggester: Provides a free automated solution with an accuracy rate of around 12%.

KPMG: Offers human-researched classification services, achieving typical accuracy rates of 70% but at a higher cost, often around $100 per classification.

Tarifflo differentiates itself by offering a more accurate and cost-effective solution, achieving over 90% accuracy and reducing costs by 90% compared to traditional customs broker fees.

Strategic Collaborations and Partnerships

Tarifflo has been featured on the StartOps network, indicating recognition within the startup and operations community. The company is also conducting large-scale tests with major logistics firms in the U.S., suggesting strategic collaborations aimed at validating and enhancing its platform's capabilities.

Operational Insights

Competitive Advantages

Tarifflo's distinct competitive advantages include:

High Accuracy: Achieves over 90% alignment with CBP court rulings, surpassing both automated and manual classification methods.

Cost Efficiency: Reduces classification costs by 90% compared to traditional customs broker fees.

Speed: Delivers accurate HTS classifications in minutes, significantly faster than manual processes.

Comprehensive Documentation: Provides written justifications for classifications, backed by relevant legal references, ensuring audit readiness.

Strategic Opportunities and Future Directions

Expansion and Growth

Tarifflo is focused on expanding its platform's capabilities to support multi-country classifications, catering to customers operating in multiple international markets. The company is also engaging in large-scale tests with major logistics firms, indicating a strategic direction towards scaling operations and enhancing service offerings.