Predictika · customs entries and landed cost for a manufacturer-to-consumer retailer

An AI agent's customs entry, checked against the factory, the product, the duty and the margin before it is filed

Quince, a manufacturer-to-consumer retailer, ships from factories in many countries and has said it prepays duties and taxes. An AI customs agent drafting entries in a setting like that has to get the country of origin, the tariff heading of each line, the declared value, the trade terms, the duty and the documents right, and tariff changes make each mistake more expensive. Before an entry is filed, the agent sends it to Predictika, which checks it against a declarative model of the customs rules and the unit economics and returns a verdict, every reason and the figures it computed, including the landed cost per unit. The factories, duty rates and limits on this page are modeled and illustrative, not taken from Quince's systems or from any tariff schedule.

Scope: One customs entry with one or two product lines — origin, tariff heading, value, trade terms, duty, documents, filing authority and landed-cost margin. See everything this validator covers

This validator checks a customs entry an AI agent has drafted for a shipment from one factory into one market. It does not classify products, look up tariffs or file anything by itself: the retailer's own systems supply the factory record, the commercial invoice values, freight and retail prices, and the validator checks the entry against them and computes the duty and the landed cost.

  • Country of origin — the origin declared must be the country where the factory made the goods, not the country the fiber or the shipment came from. The factory's country decides any additional duty.
  • Tariff heading — on each line, the heading claimed must be the heading the product is filed under.
  • Declared value — on each line, the declared value may not be below the commercial invoice.
  • Trade terms — the shipment must be Delivered Duty Paid, because duties and taxes are prepaid.
  • Duty stated — the duty on the entry is compared with the duty the validator computes from the invoice values, the base rate for each product and the additional duty for the factory's country; more than 1 percent apart is blocked.
  • Documents — the commercial invoice and packing list, and the certificate of origin for factories in countries that require one.
  • Filing authority — duty above what the customs agent may file for the market ($60,000 for the United States, $40,000 elsewhere in the model) needs the VP of global trade.
  • Landed cost and margin — each line's landed cost (invoice value, duty and its share of freight, per unit) is set against the retail price; a margin under the product's floor goes to a merchandising director.

Any entry involving these checks is in scope — other products, factories, markets and amounts, not only the scenarios pictured here. Not covered: product classification, tariff lookup, valuation adjustments, quotas, drawback and other customs programs, and brokerage. Duty rates, additional duties and limits are modeled and illustrative; real rates change often and in a deployment would come from the retailer's tariff feed. This is not legal or customs advice.

The AI customs agentDrafts the customs entry from the invoice and the factory record and says it is ready to file.
Predictika validatorChecks every rule at once and returns the verdict, each finding, and the computed figures.

6 scenarios in 2 groups · each group runs from the agent’s first attempt to the outcome · click one to switch

What the agent proposes

The AI customs agent says

Illustrative agent statement. The validator receives the structured request below.

Proposing agent: AI customs agent (scripted)

Before sending, the agent must call Recorded run

Predictika validator


      

        
        
        
      

      
Waiting for the call.

      
    

  

  
  

    
Where a tariff lookup table or a broker checklist alone gets it wrong
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Our assessment of what a tariff lookup table, or a broker's checklist of fields to complete, does with the same cases. It is a judgment about what such tools are built for, not a claim that nothing can be built around them.

    
What the validator caughtTariff lookup or checklist alonePredictika
Country of origin declared as the fiber countryOnly with workarounds
A lookup gives the rate for a country once someone has chosen it. Which country counts depends on where the goods were made, a fact in the factory record, not on the entry.		The factory is an input; the validator compares the origin declared with the factory's country and applies the additional duty for the factory's country.
A tariff heading that does not match the productOnly with workarounds
A lookup returns a rate for any valid heading. It does not know which heading belongs to the product on the line.		Each line's product is an input; the validator compares the heading claimed with the heading that product is filed under.
Duty stated that is not the duty owedNot what it is built for
Computing the duty needs the invoice value of each line, the base rate for each product and the additional duty for the factory's country, then a comparison with the total on the entry.		The validator computes the duty line by line, adds the lines, compares the total with the duty stated and shows both figures and the difference.
A value declared below the invoiceOnly when someone is vigilant
Each number looks plausible on its own. The gap shows only when the declared value is set against the commercial invoice, line by line.		The invoice value is an input; the validator compares each line and names the line and both amounts.
Duties left unpaid on a shipment that should be prepaidOnly with workarounds
A trade-terms field accepts either value. The policy to prepay is a rule about the terms, not about the product or the rate.		The trade terms are an input; the validator blocks Delivered Duty Unpaid and says why.
Documents missing, depending on the factoryOnly with workarounds
A checklist asks for the same documents on every entry. A certificate of origin is required only for some countries.		The factory's country decides whether the certificate is required; the validator counts what is missing.
Margin that duty and freight push below the floorNot what it is built for
The landed cost depends on duty, a share of freight allocated by value across the lines, and the units. A rate lookup does not reach the margin.		The validator computes the landed cost per unit for each line and compares the margin with the product's floor.
Duty above what the agent may file on its ownOnly with workarounds
A field check passes any amount. The limit depends on the market and on the duty computed, not on what the agent entered.		The computed duty is compared with the market's limit and the approval needed is named.
Every problem returned in one answerOnly with workarounds
A checklist or a single reject reason tends to stop at the first problem, so the agent retries and meets the next one.		All findings come back together, blocks first, then approvals, with the figures computed.

  

  

    
What this validator catches: findings from its test cases
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Every rule is checked on every call, in any order the choices arrive; one problem never hides another. Blocking findings stop the submission; approval findings need a person to sign off; everything else is computed.

    
1The entry declares Mongolia as the country of origin, but the goods were made at Zhejiang Knit Works in China. Origin is where the goods were made, not where the fiber or the shipment came from.
2Line 1: heading 6109 does not match cashmere sweaters, which are filed under heading 6110.
3Line 2: heading 6109 does not match cashmere scarves, which are filed under heading 6117.
4The shipment is set to Delivered Duty Unpaid. Quince prepays duties and taxes, so the buyer would be billed on delivery. File it as Delivered Duty Paid.
5Line 1: the declared value of $34,000 is below the $36,000 on the commercial invoice.
6Line 2: the declared value of $12,000 is below the $13,500 on the commercial invoice.
7The entry states duties of $5,091, but the duty computed from the invoice values, the correct headings and the country of origin is $5,040. The difference is $51.
8The entry cannot be filed because required documents are missing (1 missing) for the shipment from Gobi Fiber Works.
9Line 1: with duty and freight, the landed cost of cashmere sweaters is $21 a unit. At the $41 retail price that leaves a 48 percent margin, below the 50 percent floor. A merchandising director must review the price.
10Line 2: with duty and freight, the landed cost of cashmere scarves is $10 a unit. At the $19 retail price that leaves a 47 percent margin, below the 50 percent floor. A merchandising director must review the price.
11The entry carries $40,001 in duty, above the $40,000 the customs agent may file on its own for the Canada market. The VP of global trade must approve it.

  

  

    
Scenarios and results
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The recorded result of the validator for each scenario on this page: the request the AI agent sent, the verdict, and every finding, in the order they appear above.

    
1. Holiday cashmere entry: A customs entry into the United States for 8,000 cashmere sweaters and 6,000 cashmere scarves from the knitting factory in China

    
The agent's request. Please file the customs entry into the United States for the shipment from Zhejiang Knit Works: 8,000 cashmere sweaters and 6,000 cashmere scarves. The goods are declared as made in Mongolia, Delivered Duty Unpaid, with duties stated at $31,500. It is ready to file.

    
Verdict: Blocked.

    
    
      
  • Country of origin does not match the factory. The entry declares Mongolia as the country of origin, but the goods were made at Zhejiang Knit Works in China. Origin is where the goods were made, not where the fiber or the shipment came from.
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  • Line 1 tariff heading does not match the product. Line 1: heading 6109 does not match cashmere sweaters, which are filed under heading 6110.
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  • Duties not prepaid. The shipment is set to Delivered Duty Unpaid. Quince prepays duties and taxes, so the buyer would be billed on delivery. File it as Delivered Duty Paid.
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  • Line 2 declared below the invoice. Line 2: the declared value of $42,000 is below the $54,000 on the commercial invoice.
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  • Duty stated does not match the duty computed. The entry states duties of $31,500, but the duty computed from the invoice values, the correct headings and the country of origin is $72,200. The difference is $40,700.
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  • Required customs documents missing. The entry cannot be filed because required documents are missing (1 missing) for the shipment from Zhejiang Knit Works.
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  • Duty above what the customs agent may file. The entry carries $72,200 in duty, above the $60,000 the customs agent may file on its own for the United States market. The VP of global trade must approve it.
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  • Line 1 margin falls below the floor. Line 1: with duty and freight, the landed cost of cashmere sweaters is $26 a unit. At the $50 retail price that leaves a 48 percent margin, below the 50 percent floor. A merchandising director must review the price.
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2. Holiday cashmere entry: The agent resubmits after fixing the errors

    
The agent's request. Please file the customs entry into the United States for the shipment from Zhejiang Knit Works: 8,000 cashmere sweaters and 6,000 cashmere scarves. The goods are declared as made in China, Delivered Duty Paid, with duties stated at $69,800. It is ready to file.

    
Verdict: Blocked.

    
    
      
  • Line 2 declared below the invoice. Line 2: the declared value of $42,000 is below the $54,000 on the commercial invoice.
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  • Duty stated does not match the duty computed. The entry states duties of $69,800, but the duty computed from the invoice values, the correct headings and the country of origin is $72,200. The difference is $2,400.
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  • Duty above what the customs agent may file. The entry carries $72,200 in duty, above the $60,000 the customs agent may file on its own for the United States market. The VP of global trade must approve it.
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  • Line 1 margin falls below the floor. Line 1: with duty and freight, the landed cost of cashmere sweaters is $26 a unit. At the $50 retail price that leaves a 48 percent margin, below the 50 percent floor. A merchandising director must review the price.
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3. Holiday cashmere entry: The agent resubmits after fixing the errors

    
The agent's request. Please file the customs entry into the United States for the shipment from Zhejiang Knit Works: 8,000 cashmere sweaters and 6,000 cashmere scarves. The goods are declared as made in China, Delivered Duty Paid, with duties stated at $72,200. It is ready to file.

    
Verdict: Needs approval.

    
    
      
  • Duty above what the customs agent may file. The entry carries $72,200 in duty, above the $60,000 the customs agent may file on its own for the United States market. The VP of global trade must approve it.
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  • Line 1 margin falls below the floor. Line 1: with duty and freight, the landed cost of cashmere sweaters is $26 a unit. At the $50 retail price that leaves a 48 percent margin, below the 50 percent floor. A merchandising director must review the price.
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4. Holiday cashmere entry: The VP of global trade approves the entry

    
The agent's request. Please file the customs entry into the United States for the shipment from Zhejiang Knit Works: 8,000 cashmere sweaters and 6,000 cashmere scarves. The goods are declared as made in China, Delivered Duty Paid, with duties stated at $72,200. It is ready to file.

    
Verdict: Allowed.

    
    
      
  • Duty above what the customs agent may file. The entry carries $72,200 in duty, above the $60,000 the customs agent may file on its own for the United States market. The VP of global trade must approve it.
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  • Line 1 margin falls below the floor. Line 1: with duty and freight, the landed cost of cashmere sweaters is $26 a unit. At the $50 retail price that leaves a 48 percent margin, below the 50 percent floor. A merchandising director must review the price.
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5. Linen shirts and sheet sets from India: A customs entry into the United States for 5,000 linen shirts and 3,000 sheet sets from the factory in India

    
The agent's request. Please file the customs entry into the United States for the shipment from Jaipur Loom House: 5,000 linen shirts and 3,000 sheet sets. The goods are declared as made in India, Delivered Duty Paid, with duties stated at $37,800. It is ready to file.

    
Verdict: Blocked.

    
    
      
  • Line 2 tariff heading does not match the product. Line 2: heading 6307 does not match sheet sets, which are filed under heading 6302.
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  • Required customs documents missing. The entry cannot be filed because required documents are missing (1 missing) for the shipment from Jaipur Loom House.
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6. Linen shirts and sheet sets from India: The agent resubmits after fixing the errors

    
The agent's request. Please file the customs entry into the United States for the shipment from Jaipur Loom House: 5,000 linen shirts and 3,000 sheet sets. The goods are declared as made in India, Delivered Duty Paid, with duties stated at $37,800. It is ready to file.

    
Verdict: Allowed.

  

  

    
Narration transcript
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The text of the narrated walkthrough, step by step.

    
    
      
  1. Welcome to a demo of Predictika's Validator. Quince, a manufacturer-to-consumer retailer, ships from factories in many countries and has said it prepays duties and taxes. An AI customs agent drafting entries in a setting like that has to get the country of origin, the tariff heading of each line, the declared value, the trade terms, the duty and the documents right, and tariff changes make each mistake more expensive. Before an entry is filed, the agent sends it to Predictika, which checks it against a declarative model of the customs rules and the unit economics and returns a verdict, every reason and the figures it computed, including the landed cost per unit. The factories, duty rates and limits on this page are modeled and illustrative, not taken from Quince's systems or from any tariff schedule.
    2. 
      
  2. I will start with the first request by the agent.
    3. 
      
  3. The agent says. Please file the customs entry into the United States for the shipment from Zhejiang Knit Works: 8,000 cashmere sweaters and 6,000 cashmere scarves. The goods are declared as made in Mongolia, Delivered Duty Unpaid, with duties stated at $31,500. The rest of the request is on screen.
    4. 
      
  4. Before it goes out, the agent calls the validator.
    5. 
      
  5. Blocked, with six findings and two approvals, all in one answer. The entry declares Mongolia as the country of origin, but the goods were made at Zhejiang Knit Works in China. Origin is where the goods were made, not where the fiber or the shipment came from. Line 1: heading 6109 does not match cashmere sweaters, which are filed under heading 6110. The shipment is set to Delivered Duty Unpaid. Quince prepays duties and taxes, so the buyer would be billed on delivery. File it as Delivered Duty Paid. The other three are on screen.
    6. 
      
  6. The validator returned six blocking findings and two approvals in one answer. A check that reads one field at a time would pass most of this; it shows only when the choices in the submission are checked against each other.
    7. 
      
  7. What this shows: for duty above what the agent may file on its own, a tariff lookup or checklist alone can do this only with workarounds.
    8. 
      
  8. Now the agent resubmits.
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  9. The corrected request. It changes the country of origin declared to china, the trade terms to Delivered Duty Paid, the packing list to on file, the line 1 to 8,000 cashmere sweaters, heading 6110 and the duty stated on the entry to $69,800.
    10. 
      
  10. It calls the validator again.
    11. 
      
  11. Still blocked, with two findings and two approvals, all in one answer. Line 2: the declared value of $42,000 is below the $54,000 on the commercial invoice. The entry states duties of $69,800, but the duty computed from the invoice values, the correct headings and the country of origin is $72,200. The difference is $2,400.
    12. 
      
  12. Four findings cleared; still blocked on line 2 declared below the invoice and duty stated does not match the duty computed.
    13. 
      
  13. The agent resubmits once more.
    14. 
      
  14. The revised request. It changes the line 2 unit value, declared and invoice to $9 and $9 and the duty stated on the entry to $72,200.
    15. 
      
  15. It calls the validator once more.
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  16. Not blocked, but held for a person.
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  17. The two blocking findings are cleared; two approvals remain for a person: duty above what the customs agent may file and line 1 margin falls below the floor.
    18. 
      
  18. The agent resubmits again.
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  19. The next revised request. It sets the approval on record to The VP of global trade.
    20. 
      
  20. It calls the validator yet again.
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  21. This time the validator clears it.
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  22. Both earlier findings are cleared, and the validator's total, $72,200, matches the submission.
    23. 
      
  23. Eight problems caught in one call, fixed in three passes, and a clean submission. That is the value of Predictika's validator: catching mistakes before the submission goes out.
    24.