# Patent

## Title
System and method for calculating real-time costing information

## Abstract

Real-time costing information is provided by a central knowledge base in communication with a database. The central knowledge base provides an application programming interface (API) through which queries are run on the content in the database. The database content includes a harmonized system (HS) module holding an HS tree unified across multiple countries, a tariffs module holding tariffs applicable to goods classified in the unified HS tree, and a freight rates module holding rules and data for calculating freight rates for a shipment of goods. A knowledge workbench includes a catalog harmonizer that enables goods in a catalog to be harmonized according to one or more countries' HS trees and the results to be stored in the database. An applications server provides applications for generating queries for costing information, such as landed cost estimates, analyzing the results.

## Background
CROSS-REFERENCE TO RELATED APPLICATIONS
This application is a continuation of U.S. patent application Ser. No. 09/991,428, filed Nov. 16, 2001, which is a continuation-in-part of U.S. patent application Ser. No. 09/939,206, filed Aug. 24, 2001, which is a continuation-in-part of U.S. patent application Ser. No. 09/573,583, filed May 18, 2000, the contents of which are hereby incorporated by reference herein.


BACKGROUND
1. Field of the Invention
This invention pertains in general to estimating costing information for domestic and internationally shipped goods and in particular to a computer system and method for automatically calculating the same.
2. Background Art
Estimating costing information for goods shipped internationally is a very complex process. Countries typically charge duties on imported goods based on the goods' classifications in the countries' harmonized tariff schedules. However, different countries often place identical goods in different classifications. In addition, different countries place different tariffs on goods even when the countries assign goods to the same class.
International treaties, such as trade agreements between two or more countries, may reduce or eliminate tariffs on certain goods. Countries may also have quotas, two-stage tariff systems, or anti-dumping and countervailing duties wherein the tariff on a good is determined by the amount of that good previously imported into the countries. There may also be restrictions on the types of goods that can be exported out of or imported into certain countries, or shipped to certain people or addresses.
In addition, shipping rates vary greatly for different types of goods and shipping methods. Moreover, different companies or other suppliers of goods frequently negotiate custom rates with one or more shippers that need to be considered when estimating landed costs. Plus, currency exchange rates fluctuate regularly.
All of the above factors make it extremely difficult to calculate costing information for a good. As such, it is difficult for a salesperson or other interested party to provide a reasonably accurate price quotation in real-time (e.g., while a potential buyer is on the telephone). Therefore, there is a need in the art for a way to provide a fast and accurate estimate of costing information for a good.
DISCLOSURE OF THE INVENTION
The above need is met by a system and method that delivers real-time estimates of costing information. The system includes a central knowledge base that includes a database holding content, including rules and data, for generating the costing information and an engine providing an application programming interface (API) through which it receives queries. The central knowledge base executes the queries on the content in the database to produce the requested costing information. The database preferably includes a harmonized system (HS) module holding an HS tree unified across multiple countries and a tariffs module holding tariffs applicable to goods classified in particular classifications in the unified HS tree. The database also preferably holds a compliance module holding information related to legal compliance of contemplated shipments, a freight rates module holding rules and data for calculating freight rates, and a trade information module holding miscellaneous trade information utilized by the system. The database also preferably includes a custom content module holding custom rules and other content for use when generating particular types of costing information.
The central knowledge base preferably includes a classification module for accepting information about a good and, in response, identifying one or more classifications in one or more countries' HS trees appropriate for the good. The classifications for the good are preferably stored in the database. The central knowledge base also preferably includes a landed-cost generation module for accepting information about a proposed shipment of a good and utilizing the content in the database, including the good's classification, the applicable tariffs, and the freight rates to generate a landed-cost estimate. Other modules in the central knowledge base utilize the content in the database to generate other types of costing information.
A developer or other user preferably utilizes a publisher to transmit content to the central knowledge base. This content includes updates to modules in the central knowledge base and updates to content in the database. The publisher preferably transmits content as “datapacks.” A datapack contains the content, as well as instructions for applying the content to the central knowledge base and/or database. A data subscription module in the central knowledge base, along with a subscriber module in the database, preferably initiate transfer of the datapacks and responsively update the content in the central knowledge base and/or database.
A customer preferably utilizes a knowledge workbench to create customer-specific content and store it in the database. Custom content includes, for example, freight rates, catalogs of goods and the goods' associated harmonizations, and custom rules for the modules in the central knowledge base to apply when generating costing information for the customer. In addition, a customer preferably utilizes an applications server to execute applications that access the functionality of the central knowledge base and content of the database to perform functions such as duty optimization, identifying documents necessary for certain shipments, and integrating sales information with the database content. The customer can preferably execute queries requesting costing information from a client application, transmit the queries to the central knowledge base via the API, and receive the requested costing information in response. The customer can also preferably bypass the client application and transmit the queries via the API directly, or cause the queries to be transmitted by an application executing on the application server.



BRIEF DESCRIPTION OF THE DRAWINGS
FIGS. 1A and 1B are high-level block diagrams illustrating embodiments of a system for delivering real-time costing information;
FIG. 2 is a flowchart illustrating a method for delivering costing information according to an embodiment of the system of FIG. 1;
FIG. 3 is a high-level block diagram illustrating modules in the central knowledge base and database according to a preferred embodiment of the system;
FIG. 4 is a high-level block diagram illustrating the Harmonized System (HS) module of FIG. 3;
FIGS. 5A-D illustrate an example of how the cross-reference module in the HS module uses groups to maintain cross-references among nodes;
FIG. 6 is a high-level block diagram illustrating modules in the knowledge workbench according to a preferred embodiment of the system;
FIG. 7 is a block diagram illustrating a more detailed view of the freight rate manager module in the knowledge workbench according to an embodiment of the present invention;
FIG. 8 is a flowchart illustrating the operation of the freight rate manager of FIG. 6 according to an embodiment of the present invention;
FIG. 9 is a block diagram illustrating a more detailed view of the catalog harmonizer and the central knowledge base;
FIG. 10 is an illustration of an embodiment of the graphical user interface (GUI) for the catalog harmonizer produced by the GUI module in the catalog harmonizer for classifying goods in the catalog according to the HSs of one or more countries;
FIG. 11 is a high-level block diagram illustrating the application modules in the applications server according to one embodiment of the system;
FIG. 12 is a high-level block diagram illustrating a computer system for use as the client, central knowledge base, applications server, knowledge workbench, and/or another device illustrated in FIG. 1;
FIG. 13 is an illustration of an embodiment of the GUI for the harmonizer wizard in the catalog harmonizer; and
FIG. 14 is a flowchart illustrating the operation of the landed-cost generation module according to an embodiment of the system of FIG. 1.



The figures depict an embodiment of the present invention for purposes of illustration only. One skilled in the art will readily recognize from the following description that alternative embodiments of the structures and methods illustrated herein may be employed without departing from the principles of the invention described herein.
DETAILED DESCRIPTION OF THE PREFERRED EMBODIMENTS
FIGS. 1A and 1B are high-level block diagrams illustrating embodiments of a system 100 for delivering real-time costing information related to goods that a user of the system is contemplating shipping to a buyer. Five questions that exemplify the types of questions posed by the prospective shipper are: (1) What will the goods cost the buyer? (2) Can the user sell the goods to the buyer? (3) When will the buyer receive the goods? (4) What documents will the buyer need in order to receive the goods? and (5) Where should the user warehouse the goods and the goods' subassemblies to minimize shipping costs and tariffs?
The answers to these types of questions are generically referred to as “costing information.” This phrase is utilized because it is expected that questions of the first type, “What will the goods cost the buyer,” will predominate. Still, it should be understood that “costing information” also refers to information not directly related to a “cost.” For example, the answers to “whether a transaction is prohibited” or “what documents are required for a transaction” are types of costing information. The system 100 can also be used to provide costing information addressing questions other than those listed above.
The system 100 is adapted to provide costing information in real-time. In this description, the phrase “real-time” means fast enough to respond to someone or something that is waiting for the information. For example, an embodiment of the system 100 is used to provide estimates to a salesperson quoting costs to a potential customer and generates the estimate within a few seconds. Alternatively, an embodiment of the system 100 providing costing information as part of a larger computer-performed calculation may generate the information in under a second. The answers supplied by the system 100 are not necessarily exact, and may represent estimates based on the available data.
The answer to the first question, “what will the goods cost the buyer?” is commonly referred to as the goods' “landed cost.” The “landed cost” for a quantity of goods is the total cost of shipping the goods from a specified origin to a specified destination, or, conversely, the total cost of receiving the goods at the stated destination. Typically, the landed cost includes components such as freight, insurance, customs tariffs, and taxes, in addition to the cost of the goods themselves. The exact landed cost is almost impossible to calculate in advance due to fluctuations in currency exchange rates, fuel costs, etc. Nevertheless, the system 100 provides an estimate of the landed cost that is accurate enough to be used by the interested parties. The present invention is designed to provide estimates for goods shipped internationally, although it can also be used to estimate landed costs for domestic shipments. In one embodiment, the present invention supports shipping to/from any country in the world. In another embodiment, the present invention supports only a subset of the world's countries. As used herein, the term “country” refers to nations, economies, trade zones, and/or any other entity. “Goods,” as used herein, refers to articles of commerce. Typically, the goods are commodities, but this relationship is not required.
Since estimating a landed cost is one of the more important functions performed by the system 100 of FIG. 1, the system is sometimes referred to as a “landed cost system.” FIG. 1A illustrates an application service provider (ASP) embodiment of the system 100A. In the ASP embodiment, a central knowledge base 110A is located remote from a customer. As used herein, the term “customer” refers to an entity utilizing the landed cost system 100 and does not necessarily imply that the entity is in fact a customer of another entity. The term “customer” is utilized herein because, in one embodiment, the entity using the system 100 is in a customer/merchant relationship with an entity that operates the system. However, other embodiments, in which the “customer” is not in a customer relationship, are within the scope of the present invention.
In one embodiment, the central knowledge base 110A is co-located with one or more servers at a co-location facility having high-speed access to the Internet. As is known in the art, the term “ASP” implies that the central knowledge base 110A supports many customers from the centrally managed co-location facility. However, the central knowledge base 110A may support one or only a few customers in some embodiments. In addition, the central knowledge base 110A, despite its name, may be a distributed system. Advantages of the ASP embodiment of the system 110A include lower startup and maintenance costs for the customer.
The central knowledge base 110A preferably includes a database 112A for storing information utilized in answering the questions stated above and is in communication with a publisher 116A via a communications link 121A. The communication link 121A preferably supports communications via the hypertext transport protocol (HTTP) and/or via the file transport protocol (FTP) over the transmission control protocol (TCP)/Internet protocol (IP). As such, the communication link 121A may include dedicated private links and/or public links such as the Internet, a telephone network, or another publicly-accessible network. In general, the communications link 121A may use any conventional communications technologies and communications media. The communications link 121A may also pass data through one or more other computer systems (not shown), such as routers, load balancers, and the like. In one embodiment, the communications link 121A is a local area network (LAN) at the co-location facility.
The publisher 116A preferably provides new and/or updated content to the central knowledge base 110A and database 112A. A development system 117A is preferably utilized to supply content to the publisher 116A and is preferably in communication with the publisher via another communications link 119A. In one embodiment, the communication link 119A between the development system 117A and the publisher 116A is a secure communications circuit, such as an encrypted T1 line. However, this link 119A, as with the other communications links described herein, can use any known communications technology or communications media. In one embodiment, moreover, the publisher 116A is located on the same computer system as the development system 117A and, therefore, the communications link 119A is simply an intra-computer communications link.
Another communications link 114A preferably couples the central knowledge base 110A to a knowledge workbench 118A behind a firewall 122A at a customer site. In one embodiment, this communications link 114A is a standard Internet connection and utilizes standard secure networking technologies, such as the secure sockets layer (SSL). The customer preferably utilizes the knowledge workbench 118A to view, add, delete, and/or modify data stored at the central knowledge base 110A. As is known in the art, the firewall 122A prevents unauthorized users from gaining access to the customer's computers and/or monitors transfers of information to and from the customer's computers. In one embodiment, the customer does not have a firewall 122A. Nevertheless, the firewall 122A is representative of a logical division between the customer and the Internet at-large in which the central knowledge base 110A is located.
The customer also preferably has an applications server 124A and a client 128A. These two entities 124A, 128A preferably access the functionality of the central knowledge base 110A via an applications programming interface (API) 126A provided by the knowledge base. These two entities 124A, 128A can preferably generate the same types of queries to the API 126A. The API 126A is illustrated as being within the customer's firewall 122A to indicate that the API is accessible to computer systems executing behind the firewall that are coupled together via another communications link 115A, such as the customer's LAN. In reality, the API 126A is preferably a publicly-accessible interface to the central knowledge base 110A. As such, the API 126A is illustrated as being in communication with the central knowledge base 110A via the SSL-based Internet communications link 114A.
The applications server 124A preferably holds customer-provided and third party applications that utilize the functionality of the central knowledge base 110A. The client 128A is preferably utilized by a user to access the functionality of the central knowledge base 110A. For example, the client 128A in one embodiment is a computer system having a web browser that is utilized by a person to obtain a landed cost estimate through interactions with the central knowledge base 110A. Although the client 128A is illustrated as being within the firewall 122A, the client may be located outside the firewall or anywhere else where it can access the API 126A.
In contrast to the ASP embodiment of FIG. 1A, FIG. 1B illustrates an alternative embodiment of the landed cost system 100B wherein the entire system, with the exception of the publisher 116B and development system 117B, is located within the customer's firewall 122B. In FIG. 1B, the central knowledge base 110B, knowledge workbench 118B, applications server 124B, and client 128B communicate via the customer's internal computer network 115B. In one embodiment, the customer's network 115B is a conventional local or wide area network utilizing conventional communications technologies to support communications among the various computer systems and other entities at the customer's site. As in the ASP embodiment of the system 100A, the development system 117B preferably communicates with the publisher 116B via a secure communications link 119B. Advantages of the non-ASP embodiment include greater security and faster response times, greater control over the content and software in the system 100B, etc.
In this embodiment of the system 100B, the central knowledge base 110B is preferably dedicated to the single customer at whose facility it is located and there are preferably multiple central knowledge bases installed at multiple customers. If necessary or desired to support the customer's requirements, however, a customer can have multiple central knowledge bases 110B. The publisher 116B is preferably in communication with each customer's central knowledge base 110B.
In either embodiment, the entities in the landed cost system 100 preferably perform substantially the same functions except for the differences necessitated by the different architectures. In addition, additional embodiments of the system 100, wherein one or more other entities are inside or outside of the firewall and/or local or remote to the customer are within the scope of the present invention.
FIG. 2 is a flowchart illustrating a method for delivering costing information, such as a landed cost estimation, according to an embodiment of the system 100 of FIG. 1. It should be understood that the FIG. 2 represents only one possible embodiment of the present invention and the steps illustrated therein may be performed in a different order or omitted, or additional steps may be added, in alternative embodiments of the method.
Initially, a user utilizes the knowledge workbench 118 to harmonize 210A a catalog of goods supplied by the customer according to one or more countries' harmonized systems (HSs). As part of this process, each good is matched with an HS code describing tariffs and other factors that apply to the good. During this phase, the user also preferably utilizes the knowledge workbench 118 to create other custom information about the customer, such as custom freight rates, in the database 112. The user preferably utilizes the knowledge workbench 118 to store 212 the harmonized catalog and other custom information in the database 112 of the central knowledge base 110. In an alternative embodiment of the system 100, some or all of this information is provided by the user when asking for the costing information and is not stored in the database 112.
Asynchronously with the harmonization of the catalog, a developer preferably utilizes the development system 117 to develop 210B content for the central knowledge base 110. This content includes information such as default freight rates and delivery schedules, denied party and license requirements, other compliance information, a unified HS tree representing the HSs of multiple countries, associated tariff information, etc. Although the developer operates asynchronously from the user, the developer preferably develops at least some of the content, such as the unified HS tree, before the customer harmonizes the catalog (since the customer would otherwise be unable to perform the harmonization). The developer preferably utilizes the publisher 116 to publish 212 the information to the central knowledge base 110.
Once the central knowledge base 110 is loaded with information, a user at the customer preferably utilizes the client 128 to access the API 126 and execute 214 queries on the information. Alternatively, the user may execute an application module on the application server 124 and cause it to execute 214 query. The queries request costing information with respect to one or more specified goods in the customer's product catalog and other variables in the system. Modules in the central knowledge base 110 determine the answers to the queries and return 218 the answers to the user via the client 128.
FIG. 12 is a high-level block diagram illustrating a computer system 1200 for use as the client 128, central knowledge base 110, applications server 124, knowledge workbench 118, publisher 116, development system 117, and/or another device illustrated in FIG. 1. FIG. 12 illustrates at least one processor 1202 coupled to a bus 1204. Also coupled to the bus 1204 are a memory 1206, a storage device 1208, a keyboard 1210, a graphics adapter 1212, a pointing device 1214, and a network adapter 1216. A display 1218 is coupled to the graphics adapter 1212.
The processor 1202 may be any specific or general-purpose processor such as an INTEL x86 or POWERPC-compatible central processing unit (CPU). The storage device 1208 may be any device capable of holding large amounts of data, like a hard drive or some other form of fixed or removable storage device. The memory 1206 holds instructions and data used by the processor 1202. The pointing device 1214 may be a mouse, track ball, light pen, touch-sensitive display, or other type of pointing device and is used in combination with or instead of the keyboard 1210 to input data into the computer system 1200. The network adapter 1216 couples the computer system 1200 to a computer network via a communications link such as link 114, 115, 119, or 121.
Program modules 1220 for providing the functionality attributed to the computer system are preferably stored on the storage device 1208, loaded into the memory 1206, and executed by the processor 1202. Alternatively, hardware or software modules may be stored elsewhere within the computer system 1200. As used herein, the term “module” refers to computer program logic, data, and/or any software, hardware or circuitry utilized to provide the functionality attributed to the module. The types of hardware and software within the computer system 1200 may vary depending upon how the computer system is utilized. For example, a computer system used as the central knowledge base 110 is likely to have greater processing power and storage capacity than a typical personal computer or portable electronic device used as the client 128. In addition, the central knowledge base 110 may lack a display 1218 and/or other components.
Returning to FIGS. 1A and 1B, the user preferably uses the client 128 to interface with and send queries to the central knowledge base 110 via the API 126. In other embodiments, the client 128 interfaces with a dedicated client server (not shown) or another of the entities illustrated in FIG. 1. In one embodiment, the client 128 is a personal computer executing browsing software such as NETSCAPE NAVIGATOR®, MICROSOFT INTERNET EXPLORER®, a terminal emulator, or dedicated client software. Alternatively, the client 128 is a wired or wireless telephone, a personal digital assistant (PDA), or some other electronic device. Although only one client 128 is illustrated in each of FIGS. 1A and 1B, embodiments of the present invention may have multiple clients.
The central knowledge base 110 preferably includes a conventional application server supporting the API 126 and the client 128 preferably accesses the API using known HTTP communications techniques. In one embodiment, the API 126 is implemented as JAVA® and component object module (COM) plug-ins. The plug-ins preferably communicate with the other elements in the central knowledge base 110 and/or other entities in the system 100 through conventional communication transports including the extensible markup language (XML), the simple object access protocol (SOAP), and/or direct Enterprise JavaBeans (EJB) calls.
The user can preferably interact with the system 100 in one of three primary manners: stateful, semi-stateful, or stateless. The differences among these manners are in the amount of data a query passes to the system 100 via the API 126. In stateful interactions, only data that cannot be known in advance (such as the quantity, buyer, etc.) are passed to the system 100 with the query. All other data relied upon by the system 100 to respond to the user's query are already stored in the system, typically in the central knowledge base 110. In semi-stateful interactions, some of the data stored in the system 100 are overridden by data passed with the query via the API 126. FIG. 2 illustrates the stateful and semi-stateful interactions. In stateless interactions, all of the data stored in the system 100 that can be overridden by data passed with the query via the API 126 are overridden. In one embodiment, the data that cannot be overridden via the API 126 include freight rates, tariffs, VAT rates, etc. If the system 100 lacks data needed to answer a query, either because the data are not in the central knowledge base 110 and/or not in the query, one embodiment returns an error message to the client 128 explaining the error and how to rectify it.
In general, the system 100 is easier to use if frequently-utilized data are stored in the system rather than being included with every query. Moreover, a dedicated group of developers or users can store the frequently-utilized data in the system 100 in advance, leaving the majority of users free to use the system in a stateful or semi-stateful manner. For example, in a stateful embodiment where large amounts of data are stored by the system 100, a user can obtain a landed cost estimate by merely identifying a type of good, a ship-to destination, and a quantity. For this reason, the stateful and semi-stateful interactions are preferred.
In response to the query received from the client 128, the application server in the central knowledge base 110 delivers the costing information, such as the landed cost estimate, to the client. In one embodiment, the application server provides the answers in formats such as the hypertext markup language (HTML), XML, JAVA® applets, JavaScript scripts, voice or other audio prompts, etc. In this latter embodiment, a user uses a telephone to input touch-tone signals to the central knowledge base 110 via the API 126 and receives voice prompts and audio data in response.
FIG. 3 is a high-level block diagram illustrating modules in the central knowledge base 110 and database 112 according to a preferred embodiment of the system 100. In general, the central knowledge base 110 holds information utilized to provide the costing information. In the ASP embodiment of FIG. 1A, the central knowledge base 110A preferably holds information relevant to multiple customers while in the dedicated embodiment of FIG. 1B the central knowledge base 110B preferably holds information relevant to one customer.
The central knowledge base 110 preferably contains a classification module 301 for finding the best harmonized system (HS) code in which to classify a good. The central knowledge base 110 also preferably holds a rule compilation/execution module 302 for compiling and/or executing rules stored in the database 112. Compiling certain rules may be desired because compiled rules generally execute faster than interpreted rules (i.e., rules that are executed from an uncompiled state). The central knowledge base 110 also preferably holds a denied-party screening module 303 for determining whether a transaction involves prohibited individuals, companies, countries, addresses, etc., a license detection module 304 for interfacing with the compliance module 314 to detect whether an export license is needed to export a particular good, a landed-cost generation module 305 for generating real-time landed-cost estimates from information held in the database 112 or otherwise provided to the system 100, and a data subscription service module 306 for controlling updates to the data in the database 112.
Preferably, the above-described modules are independent and can be installed and executed separately. In addition, the modules are preferably platform independent and in one embodiment the modules are written in JAVA® and are Java 2 Platform Enterprise Edition—(J2EE-) compliant.
The database 112 preferably holds data modules holding data utilized by the other modules in the central knowledge base 110. Much of the data in the database is tabular and thus is stored in conventional database formats. Some of the data, however, is ad hoc, meaning that the data is intended to perform a specific purpose. Preferably, ad hoc content is implemented as rules, either in uncompiled or compiled form. Thus, ad hoc content is a form of executable data. In one embodiment, the rules are represented as Prolog-language code, although other embodiments may use different representations. The rule-based representation of ad hoc data is preferred because it allows algorithmic behavior of the system 100 to be altered simply by altering the data held in the database 112.
The database 112 preferably holds an HS module 310, which in turn preferably holds a unified HS code hierarchy (also referred to as the unified “HS tree”). The HS, also known as the Harmonized Commodity Description and Coding System, is a multipurpose international good nomenclature developed by the World Customs Organization (WCO). The HS comprises about 5,000 commodity classifications, each identified by a six digit code (although countries can and typically do add additional digits) and having an associated description, arranged in a hierarchical structure. The system is used by more than 177 countries and economies as a basis for their customs tariffs and over 98% of the merchandise in international trade is classified in terms of the HS. The United States uses a Harmonized Tariff Schedule (HTS) based on the HS. The HS tree in the HS module 310 is “unified” because it holds data representative of all of the HS trees of the countries supported by the system 100.
Returning to FIG. 3, a tariffs module 312 preferably holds information about duties, taxes, and fees including preferences, value added taxes (VATs), anti-dumping duties, countervailing duties, duty units, etc. applied by the country or countries supported by the system 100. The tariffs are indexed by the countries' HS codes. The tariffs module 312 additionally holds rules for applying the tariffs, such as the de minimis, noncommercial shipments, and effectively dates rules. The tariffs module 312 also preferably holds information about miscellaneous accessorial charges such as inspections, insurance, etc. applied or required by the various countries.
A compliance module 314 preferably holds information for determining whether a proposed shipment complies with the laws of the countries involved. The compliance module 314 preferably holds a denied parties module that stores data representative of import and export restrictions imposed by the countries supported by the system 100. The compliance module 314 also preferably holds information about import/export licenses granted to certain parties, customers, etc. In addition, the compliance module 314 preferably holds quota information describing import (and/or export) quotas enforced by the countries. The compliance module 314 also preferably holds rules for applying the content in the module to proposed shipments contemplated by the system 100.
A freight rate module 316 preferably holds information describing rates and average shipping times for shipping goods domestically and internationally. In general, the freight rates are divided into two broad categories: custom rates and default rates. The custom rates typically result from negotiations between the customer and one or more shippers and are preferably utilized when determining a landed cost for goods shipped by that customer. Accordingly, the freight rate module 316 preferably holds the custom freight rates for the one or more customers that use the system 100. The default freight rates are preferably utilized by the system 100 in the absence of custom freight rates. In one embodiment, the default freight rates are published rates for large shipping companies such as United Parcel Service (UPS) and DHL Worldwide Express.
A logging module 318 preferably logs and stores logs of transactions and other data generated by the system 100. In one embodiment, the logs include transaction reports, billing records, and debugging information. The logs also preferably include information describing variances between quoted landing costs (or other quoted information) and the actual landing costs in order to verify the accuracy of the system 100.
A packaging module 319 preferably holds information related to packaging calculations, such as weights and dimensions. In one embodiment, the information includes rules describing the space occupied by certain types of goods in certain configurations. The dimensions occupied by goods, and calculated by the rules, may not scale linearly with the quantity of the goods. For example, assume a good in an individual contain may occupy a first amount of space. However, a quantity of the good must be shipped on a pallet that occupies a second amount of space. In this example, the packaging module 319 includes rules that identify and account for the pallet in order to provide accurate estimates of the required packaging dimensions and/or the storage space required to ship the goods.
A security module 320 preferably holds security information utilized by the system 100. In one embodiment, the security information includes login/password pairs utilized by users to log into the system 100, permissions information describing the features and data accessible to the users, and any other information that is necessary or desired to maintain security in the system 100.
A trade information module 321 preferably holds miscellaneous trade information utilized by the system. This information includes geographic data describing the locations of countries, provinces, counties, cities, airports, seaports, and/or other locations necessary or desired to generate a landed cost estimate or answer other questions posed by the user. The trade information module 321 also preferably holds current exchange rates for the currencies of countries supported by the system 100. The module 321 also holds Incoterm (International Commerce Term) definitions in a format that can be utilized by the system when determining landed cost estimates.
A custom content module 322 preferably holds custom content supplied by, and pertinent to, the one or more customers utilizing the system 100, with the exception of the custom freight rates stored in the freight rate module 316. In one embodiment, the custom content includes catalog trees hierarchically identifying categories and subcategories of goods supplied by a customer and the goods' respective HS codes, product information such as SKUs, names, descriptions weights, dimensions, United States Export Control Classification Numbers (ECCNs), if applicable, country of origin information, and/or preference flags. The custom content module 322 in one embodiment also contains kit information (e.g., bills of material, top-level-assembly information, configuration information, etc.), cross-references, a customer-specific glossary to aid in classification, custom classification terms, accessorial charges, tariff rules, denied parties, licenses and/or exceptions, quotas, and/or compliance rules.
In general, customers can provide the custom content to the custom content module 322 through use of the tools described herein. The custom content in the module 322 overrides the default content specified by the other modules in the central knowledge base 110 and/or database 112. In the ASP embodiment of the system 100A, each customer preferably supplies custom content to the database 112A, which the system then uses when answering questions posed by users associated with the customer. Thus, the database 112A holds custom content for multiple customers. In the embodiment of the system 100B, the database 112B preferably holds custom content associated with only the single customer with which the system is associated.
A subscriber module 324 in the database 112 preferably interfaces with the data subscription module 306 and the publisher 116 to update non-custom content stored in the database. The publisher 116 is preferably a module executing on a conventional computer system, such as the development system 117. In one embodiment, the data subscription module 306 has a digital certificate and a login/password pair that it provides to the publisher module 116 to authenticate itself and allow the two modules to communicate securely.
Content is preferably provided to the publisher 116 by developers utilizing the development system 117. In addition, the publisher 116 may receive content from other sources, although the developers may use the development system 117 to establish rules for filtering and/or formatting the content received by the publisher. For example, the publisher 116 may receive data related to currency exchange rates and denied parties from third-party information providers. The development system 117 preferably receives content via conventional means, such as via a network connection (not shown) or via optical or magnetic media (not shown).
The developers preferably utilize the development system 117 to organize data to be distributed by the publisher 116 into compressed, self-contained, self-extracting packets called “datapacks.” Each datapack contains the new content and computer-executable instructions for unpacking and applying the content to the central knowledge base 110. A datapack also preferably contains a digital signature, checksum, and/or other information for authenticating the datapack. In one embodiment, datapacks are generated on a daily basis in order to update exchange-rate and other volatile data in the database 112.
In one embodiment, the data subscription module 306 in the central knowledge base 110 initiates a transfer of datapacks from the publisher module 116 to the subscriber module 324. For example, the data subscription module 306 may initiate an update at scheduled intervals, such as every day. In another embodiment, the publisher module 116 initiates a connection with the data subscription module 306 to commence an update. In either case, the publisher module 116 preferably authenticates the identity of the data subscription module 306, and then sends the datapack or datapacks containing the update to the data subscription module. The data subscription module 306, in turn, preferably utilizes the digital signature and/or checksum to verify the integrity of the datapack. In one embodiment, customers can subscribe to particular content. The data subscription module 306 ensures that the publisher only provides the customer's subscriber module 324 with datapacks containing the subscribed-to content.
Then, the subscriber module 324 unpacks and executes the content in the datapack, thereby updating the content in the central knowledge base 110. Preferably, only non-custom content is updated in this manner. Accordingly, it is incumbent on the customers to update their custom content. Preferably, the content in the central knowledge base 110 remains available while the content is being updated, thereby allowing updating without interrupting the operation of the system 100.
In one embodiment, after the datapacks are transferred and the subscriber module 324 updates the content of the central knowledge base 110, the data subscription module 306 sends status information to the publisher module 116 indicating whether the update was successful. If the datapacks were not successfully transferred to the central knowledge base 110 or the update did not complete successfully, the data subscription module 306 preferably sends diagnostic information to the publisher module 116. A developer can then analyze the diagnostic information to determine likely problems and solutions.
In order to reduce the likelihood that the central knowledge base 110 enters an inconsistent state, the subscriber module 324 preferably performs an update as a large atomic transaction. The final version state, which indicates the update level of the software in the central knowledge base 110, is preferably the last data written by the subscriber module 324. If the update fails midway through the transaction, due, for example, to a power failure, hardware error, or software error, the subscriber module 324 preferably automatically returns the central knowledge base 110 to its prior state. At this point, the update can be attempted again. This behavior enhances the fault-tolerant capabilities of the central knowledge base 110.
FIG. 4 is a high-level block diagram illustrating the data within the unified HS tree module 410 in the HS module 310 of FIG. 3. Each HS classification is represented by a node in the tree. As stated above, the HS provides six digits of precision for classifying goods, although countries often add additional digits in order to classify goods with greater precision. In the unified HS tree 410, the nodes near the top of the tree represent codes at six or fewer digits of precision, while descendent nodes below the top nodes represent codes at more digits of precision than their respective ancestor nodes. Leaf nodes represent HS codes at the full number of digits of precision. Thus, United States classification code “8501,” for “Electric Motors and Generators,” is represented by a node near the top of the tree. Code “8501.10,” for “Motors of an Output not Exceeding 37.5 W” is represented as a descendent of the node for “8501.” Code “8501.10.20,” for electric motors of under 18.65 W that are “Synchronous, valued not over $4 each,” is represented as a leaf node. Although the HS trees of different countries are often similar at the high-level (i.e., at nodes of six or fewer digits of precision), the trees often differ at the lower-levels due to the extra digits of precision added by the respective countries.
As illustrated in FIG. 4, the unified HS tree 410 is comprised of several different types of nodes and cross-references between nodes. Standard nodes 412 are nodes corresponding to particular countries' classifications that have not been altered by merging, cross-referencing, etc. as described below. For example, if a particular country has a classification that is unique among the HSs of the countries supported by the system, the classification is represented in the unified HS tree 410 by a standard node.
The unified HS 410 tree also preferably contains classification nodes 414. “Classification nodes” are nodes that account for logical classifications in the HS that are not distinguished by HS codes. For example, assume the HS contains classifications as follows:
















1234.20
Widgets




made of steel:



1234.20.10
lubricated



1234.20.20
not lubricated




made of wood:



1234.20.30
sanded



1234.20.40
not sanded










In this example, the classifications “made of steel” and “made of wood” do not have associated HS codes and would not be represented in the unified HS tree 410 without the use of classification nodes.

The unified HS tree 410 also preferably contains subnodes 416. Subnodes 416 are nodes below the standard leaf nodes in the HS tree 410. Some countries' HS trees have additional classifications, such as lists of exceptions, beneath the leaf nodes of their respective HS trees. For example, a leaf node for widgets made of sanded wood may have exceptions for blue widgets and red widgets and there may not be HS codes for the blue and red widget exceptions. When this situation occurs, the system 100 preferably manufactures subnode codes using the convention HSCodeofParent:ExceptionNumber. For example, if the HS code for widgets is 1234.20.20, the system 100 preferably creates subnode code 1234.20.20:1 to classify blue widgets and 1234.20.20:2 to classify red widgets. Different embodiments of the system 100 can use different representations, such as text strings or other tokens, for the exception numbers. Thus, the representation of the exception number can be tailored to match particular countries' classification styles. The subnodes allow the harmonization and tariff calculations to be extended deeper in the HS tree 410, so that the system 100 works the same for subnodes (i.e., exceptions) as it does with official HS codes. Preferably, a customs official reviewing customs documents that refer to subnodes recognizes, or is told, that the portions of the HS codes after the colons refer to exceptions.
The unified HS tree 410 also preferably contains merged nodes 418 sharing the same set of HS terms. A merged node is created by merging nodes from two or more countries' HS trees to produce a single node shared by those countries and having a single shared node description. Merged nodes are desirable because they save space by compacting the HS tree 410 and make it easier to classify a good in the HS trees of multiple countries.
In one embodiment of the system 100, nodes are merged in three different situations. First, nodes are preferably merged when the nodes are semantically and syntactically identical, i.e., the nodes have the same parent, the same HS code, and the same description. Preferably, node descriptions from different countries' HSs are considered the same even if they contain minor textual differences. For example, extra blanks, different line breaks, or other minor differences are preferably ignored. Likewise, differences in commas, semicolons, colons, dashes, braces, parentheses, quotes, and periods are preferably ignored and certain symbols, such as “=,” “&,” and “%” are treated as equivalent to their corresponding words. In one embodiment, if the text of two or more node descriptions contains the word “other,” all of the siblings of the two nodes are compared. The two nodes are merged only if the siblings are the same.
Second, two or more nodes are preferably merged when the nodes are semantically identical and syntactically identical (again, ignoring minor textual differences), except for their HS codes, which differ. In other words, the nodes are merged when the nodes have identical parents and descriptions, but different HS codes. In this case, the resulting merged node is associated with all of the merged nodes' HS codes.
Third, two or more nodes are candidates for merging when the nodes are semantically identical but syntactically different. In other words, the parents of the candidate nodes are the same and the HS codes are the same, but the classification descriptions are syntactically different but semantically identical. For example, one description states “cobalt oxides; commercial cobalt oxides” and the other description states “oxides of cobalt, including those intended for commercial use.”
Preferably, the development system 117 contains a node merging module 132 for performing automatic and assisted merging of nodes. In one embodiment, the node merging module 132 automatically merges nodes fitting the first two situations described above. The node merging module 132 preferably merges nodes fitting the third situation—the parents of the candidate nodes are the same and the HS codes are the same, but the classification descriptions are syntactically different—with developer input. In one embodiment, the node merging module 132 presents a developer with a graphical description of the HS trees of two or more countries. The node merging module 132 identifies two or more nodes that are candidates for merging under the third situation and presents the nodes to the developer. The developer then indicates whether to merge the nodes. If the developer indicates to merge the nodes, the developer also preferably indicates which of the nodes' descriptions to apply to the merged node. Because merging nodes often produces a new common parent for nodes further down the trees, this process continually finds new candidate nodes for merging. Therefore, the process is preferably repeated until all of the leaf nodes are reached.
When merging two or more related nodes is not possible, then the system 100 preferably utilizes a cross-reference between the nodes. For example, if two nodes are semantically identical but have different parent nodes, or two nodes are semantically similar, but not identical, then the nodes are linked by a cross-reference. Although cross-referenced nodes may not necessarily have exactly equivalent descriptions, the descriptions are preferably such that no good could fall within one node and not within the cross-referenced node.
Preferably, the developer utilizes a cross-reference module 134 in the development system 117 to create and maintain the cross-references 420 among the nodes. In one embodiment, the cross-reference module 134 shares functionality with the node merging module 132, i.e., the same module may perform both node merging and cross-reference generation.
A preferred embodiment of the cross-reference module 134 maintains cross-references between HSs of multiple countries by assigning nodes to groups. All nodes assigned to a particular group are deemed to have the same meaning. Therefore, to find nodes that are cross-referenced to a given node, the cross-reference module 134 finds all groups to which the given node belongs. Each of the nodes in those groups is a cross-reference.
FIGS. 5A-D illustrate an example of how the cross-reference module 134 uses groups to maintain cross-references. FIG. 5A illustrates five different tables. The “Nodes” table 510 contains six node_IDs, identifying six nodes. The “Groups” table 512 associates the node_IDs with particular groups identified by group_IDs. In this example, nodes 1, 2, and 3 are associated with group 1 and nodes 4 and 5 are associated with group 2. Thus, nodes 1, 2, and 3 are deemed to have one meaning and nodes 4 and 5 are deemed to have another meaning.
The “Group_Terms” table 514 associates one or more term_IDs with each of the groups. In this example, group 1 is associated with term_ID's 50 and 51. Each term_ID identifies a particular good that falls within the group. The “Terms” table 516 identifies the actual good or class of goods associated with each term_ID. For example, term_ID 50 is associated with “grouper” while term_ID 53 is associated with “bass.” In one embodiment of the present invention, an additional table, “Node_Terms” 518, specifies exceptions to the shared classifications of nodes in the groups. For example, the Node_Terms table 518 specifies that node 5 is also associated with term_ID 55 (rockfish). The other nodes in the same group as node 5 (only node 4 in this example), are not associated with term_ID 55.
FIG. 5B graphically illustrates that group 1 contains nodes 1, 2, and 3, and that all of the nodes in group 1 include grouper and trout. FIG. 5C graphically illustrates that group 2 contains nodes 4 and 5. All of the nodes in group 2 include salmon and bass, while only node 5 includes rockfish. FIG. 5D graphically illustrates that node 6 includes eel (this relationship is defined in the Node_Terms table 518).
Thus, to find nodes in other countries' HSs that cross-reference to a leaf node in a first country's HS, the cross-reference module 134 preferably identifies the group to which the leaf node belongs. The other nodes in the same group are the cross-referenced nodes. Preferably, heuristics in the cross-reference module 134 detect cases where node/group equivalency is not true for a particular good (such the case where rockfish is associated with node 5 but not with the other node in the group 2, node 4).
From the other direction, if a term_ID is known for a good being classified, then the cross-reference module 134 preferably uses the Group_Terms 514 and Node_Terms 518 tables to identify the groups and/or nodes associated with the term_ID. Then, the module 134 uses the groups table 512 to identify the cross-referenced nodes. In this manner, the cross-reference module 134 tracks cross-references between the nodes of various countries' HS trees.
Returning to FIG. 4, the unified HS tree 410 also preferably holds nodes that are identified as potential stopping points 422. In one embodiment, a node is a potential stopping point in a particular country's HS tree if: (1) the duty rates for all of the children of the given node are equivalent; (2) the tax rates for all of the children of the given node are equivalent; (3) any other rates for the children of the given node are equivalent; (4) the structure of the rates are equivalent across all of the child nodes (e.g., the rates are calculated as a percentage, fixed fee, etc. for all of the children nodes); and (5) the rules and other information in the central knowledge base 110 and database 112 that govern landed cost rates are equivalent for all of the children of the given node. Stopping points are used to efficiently classify goods, as described in more detail below.
In order to calculate the last of these factors, whether the rules and other information are equivalent, one embodiment of the system 100 parses all of the rules and other information and builds a map between the rules and information and the nodes to which they apply. Then, the rules and information are applied to all of the children of the nodes in the map to which they were initially applied. At this point, the nodes that meet all of the factors described above are stored in the unified HS tree 410 as potential stopping points 422. The process of generating the potential stopping points 422 may be performed on and/or supervised from the development system 117.
FIG. 6 is a high-level block diagram illustrating modules in the knowledge workbench 118 according to a preferred embodiment of the system 100. The knowledge workbench 118 is preferably a unified, centralized application module that a customer uses to view, add, modify, and/or delete content in the central knowledge base 110. Alternatively, the knowledge workbench 118 may be a distributed set of individual modules. The knowledge workbench 118 is preferably executed on a conventional computer system. This computer system may be the same system on which the client 128 or other entities within the system 100 execute.
The knowledge workbench 118 preferably includes a freight rate manager 610 for enabling a customer to enter data describing negotiated shipping rates into the freight rates module 316. FIG. 7 is a block diagram illustrating a more detailed view of the freight rate manager 610 according to an embodiment of the present invention. The freight rate manager 610 contains a rate sheet input module 710 for receiving data representative of a rate sheet. A rate sheet is a document enabling the determination of the cost of shipping goods from an origin to a destination. Preferably, the rate sheet input module 710 accepts the rate sheet in the MICROSOFT® EXCEL® spreadsheet format. Since this is a popular format, many major shipping companies make rate sheets available as Excel spreadsheets. In addition, scanning software can turn printed rate sheets into Excel spreadsheets through an optical character recognition (OCR) process, and electronic rate sheets in other formats can be converted into the Excel format. Of course, alternative embodiments of the rate sheet input module 710 accept rate sheet data in other formats.
Table 1 is part of an exemplary rate sheet:









TABLE 1








Second Day Service



WEIGHT
Rate Scales











(LBS.)
A
B
C
D














Minimum
$55.00
$55.00
$65.00
$65.00


100
.40
.53
.58
.65


500
.38
.48
.56
.63


1,000
.35
.46
.54
.60


2,000
.33
.44
.52
.58









The caption of Table 1 identifies that these rates are applicable for second day service. The left-hand column specifies the total weight of the goods. The second row (“A . . . B . . . C . . . D”) identifies four separate rate scales.

Table 1 zone-based and is interpreted using a second sheet that assigns geographic areas to zones. For example, the second sheet may contain a map of the United States and identify certain states as being within certain zones. The second sheet typically also contains a matrix mapping the zones to the rate scales, such as the matrix of Table 2.










TABLE 2









To Zone












From Zone
1
2
3
4





1
A
B
D
C


2
B
A
C
B


3
C
B
A
B


4
D
C
B
A









The shipping rate is calculated by identifying the zones corresponding to the origin and destination of the goods, selecting the appropriate rate scale for shipments between the zones with Table 2, and using Table 1 to calculate the shipping rate for the given weight of goods and rate scale.

Different types of rate sheets specify rates in different manners. For example, other zone-based rate sheets may identify zones by ZIP code or by assigning each state or country to a separate zone. Other rate sheets specify, for example, point-to-point rates, volume-based rates, freight-based (i.e., weight-based) rates, or hybrid rates. Those of skill in the art will recognize that the freight rate manager 610 can also support other types of rate sheets.
Preferably, the rate sheet input module 710 allows the user to provide additional information about the rate sheet. Preferably, the rate sheet input module 710 provides the user with a “wizard” with which the user can input the additional information. A wizard provides the user with a graphical user interface (GUI) having menu choices, text boxes, etc., that the user can select or fill out to indicate certain information. In one embodiment, market research and historical data are analyzed to identify information commonly requested from users. The wizard allows a user to input this information by, for example, providing the user with a check box and/or data entry fields with which the user can indicate the information.
In one embodiment, the module 710 prompts the user to input the type of rate sheet. If the user indicates that the rate sheet is zone-based, the module 710 prompts the user to identify the geographic regions in each zone. The module 710 may accomplish this task, for example, by presenting the user with a map of the world or certain countries and a “Zones” list box and asking the user to identify the countries in each zone. The user may also indicate the currency utilized in the rate sheet and/or whether the weights and measures in the rate sheet are in English or metric units. In one embodiment of the present invention, all or some of the information is determined automatically by the freight rate manager 610 instead of through a wizard or other user interaction.
The rate sheet data received by the rate sheet input module 710 are provided to a rate sheet analyzer module 712 (hereinafter referred to as the “rate sheet analyzer” or simply “the analyzer”). The analyzer 712 applies heuristics and templates to the rate sheet data in order to interpret the rates and other information contained therein. The output of the analyzer 712 is provided to a rule generator 718.
In one embodiment, the heuristics applied by the analyzer 712 identify keywords in certain cells of the rate sheet that signify the types of data. Such keywords may include “overnight,” “minimum,” “Colombia,” “door-to-door,” “zones,” “weight,” etc. Different keywords may have different meanings or weights depending upon the keywords' locations in the rate sheet. For example, keywords along the top or left side of the rate sheet typically define headings. Likewise, blocks of numbers in the middle of the sheet are probably shipping costs, weight data, etc.
Preferably, the heuristics include logic for identifying OCR errors. For example, if a particular shipping rate within the rate sheet is far outside an expected value, the heuristics flag the shipping rate as a possible error. In one embodiment, the freight rate manager 610 provides a dialog box or other interface to the user to allow the user to view, and possibly alter, the suspect data.
The rate sheet analyzer 712 preferably makes use of one or more rate sheet templates stored in a rate sheet template storage module 714 to interpret the rate sheet data. In one embodiment, the template storage module 714 is local to the freight rate manager 610. In another embodiment, the template storage module 714 is remote from the freight rate manager 610 and may be stored in the central knowledge base 110 or on a server accessible via the Internet or another network. The templates are preferably generated by analyzing typical rate sheets and identifying standard formats. In one embodiment, specialized templates are generated for the rate sheets of major shipping companies.
The heuristics within the analyzer 712 preferably use the identified keywords or other information to find a template that fits the rate sheet data. The analyzer 712 then interprets the rate sheet data as specified by the template. For example, assume that the analyzer 712 isolates the keyword “UPS” from the rate sheet data. Also assume that the template storage 714 contains a specialized template for interpreting UPS rate sheets. The analyzer 712 is likely to select the UPS template (unless other rate sheet data do not match the template) and use it to interpret the remainder of the data in the rate sheet.
In another example, assume that the heuristics identify the word “weight” on the left side of the spreadsheet defined by the rate data and the word “zones” across the top. Also assume that the template storage 714 contains a template containing rules for interpreting rate sheets having “weight” and “zones” in the aforementioned locations. If the analyzer 712 determines that the template matches the rate data, the analyzer uses the rules in the template to interpret the rate data.
In a preferred embodiment, if the rate sheet analyzer 712 cannot match a template to the rate data, the analyzer passes the rate data to a communications module 716. In one embodiment, the communications module 716 passes the rate sheet data to another location where developers can analyze the data. Preferably, the communications module 716 is coupled to a communications link, such as link 114, with which it can send data to, and receive data from, a remote computer via the Internet. The analyzer 712 preferably passes the rate sheet data to the communications module 716. The communications module 716, in turn, passes the data to a remote server where developers analyze the rate sheet data and, preferably, generate a new template or modify an existing template to process the rate sheet data. Then, the developers pass the new or modified template and the rate sheet data back to the analyzer 712 via the communications module 716. The analyzer 712 stores the template in the template storage 714 and applies the template to the formerly-unknown rate sheet data.
In an alternative embodiment, the communications module 716 stores the rate data locally. This alternative may be desirable, for example, when the shipper or user considers the rate data proprietary and does not allow it to be sent offsite for analysis. Accordingly, a developer can visit the physical location of the freight rate manager 610 and review the rate data.
The freight rate manager 610 also preferably includes an accessorial charge module 720 for adding accessorial charges. Accessorial charges are exceptions, or special fees, that need to be considered in addition to the rates specified by the rate sheet. For example, accessorial charges may be added if a forklift is required, more than two people are required to move the goods, the goods require refrigeration or other special care, or the delivery address is a school or hospital. In one embodiment, the accessorial charge module 720 allows the user to select from a menu of possible accessorial charges. Preferably, the menu items are determined by analyzing typical rate sheets and shipping needs to identify common accessorial charges. In addition, the module 720 preferably has a facility allowing the user to modify the preset accessorial charges and/or add new accessorial charges. The accessorial charge module 720 preferably communicates the accessorial charges to the rule generator 718.
The rules generator 718 preferably generates Prolog code describing the rate sheet and accessorial charge data respectively received from the rate sheet analyzer 712 and the accessorial charge module 720. When this code is given inputs and executed, it generates a shipping cost according to the terms of the rate sheet and any accessorial charges. Preferably, the rules generator stores the Prolog code in the freight rates module 316 in the central knowledge base 110.
FIG. 8 is a flowchart illustrating the operation of the freight rate manager 610 of FIG. 6 according to an embodiment of the present invention. At step 810, the manager 610 receives a rate sheet as an Excel spreadsheet or another format. The manager 610 optionally receives 812 other information about the rate sheet from the user, such as information about the type of rate sheet or the geographic areas in particular zones.
The freight rate manager 610 analyzes 814 the rate sheet data using heuristics and then attempts to select a template that matches the rate sheet. If 816 the manager 610 cannot find a matching template, it preferably stores 818 the rate sheet data (either locally or remotely) and flags it for further review by a developer. If 816 the manager 610 finds a matching template, it preferably applies 820 the template to the rate sheet data.
The freight rate manager 610 also accepts 822 information about accessorial charges from the user or another source. Then, the manager 610 generates 824 rules embodying the rate sheet data and accessorial charges. In one embodiment, these rules take the form of Prolog code. The freight rate manager 610 preferably stores 826 the rules in the freight rates module 316 in the central knowledge base 110.
Returning to FIG. 6, the knowledge workbench 118 also preferably includes a catalog harmonization module (also referred to as a “catalog harmonizer”) 612. In general, a user uses this module 612 to harmonize the customer's catalog of goods according to one or more countries' HSs. FIG. 9 is a block diagram illustrating a more detailed view of the catalog harmonizer 612 and the central knowledge base 110.
The catalog 910 is preferably an electronic list of at least a subset of the goods shipped by the customer. The catalog 910 may contain information describing the goods, such as the weights and dimensions of the goods. The catalog 910 may also be hierarchical, so that goods are classified by class and subclass, unorganized, or some state in-between.
The catalog harmonization module 612 receives the catalog 910 as an input. If necessary, a meta-catalog generation module (hereinafter the “meta-catalog generator” or “generator”) 918 within the catalog harmonizer 612 receives the catalog 910. The generator 918 preferably generates a hierarchical meta-catalog from non-hierarchical catalog data. Thus, the generator 918 is preferably utilized if the catalog data is not hierarchical. In one embodiment of the present invention, the generator 918 utilizes a GUI with which the user can identify and hierarchically order the goods in the catalog 910. In one embodiment, heuristics within the generator 918 assist the user by identifying and classifying similar goods in similar categories. For example, the GUI may allow the user to specify that all goods having a description containing the term “sweaters” are classified as a subclass of the “clothing” class. In this description, the term “catalog” refers to either a hierarchical catalog received as input or a hierarchical meta-catalog created by the meta-catalog generator 918 from at least partially non-hierarchical data.
A GUI module 920 provides the GUI for the generator 918, the GUI for the catalog harmonizer 612, and the GUI for a harmonizer wizard module 926 utilized by the harmonizer. A user uses these latter two GUIs to harmonize the goods in the catalog 910 with one or more countries' HSs. To support harmonization of the goods in the catalog, a database interface module 922 in the catalog harmonization module interacts with the classification module 301 and the HS module 310 in the central knowledge base 110 in order to determine suggested classifications in one or more countries' HSs for the goods in the catalog 910. In one embodiment, the database interface 922 receives information describing the good or goods to be harmonized and the country or countries in which to harmonize the good from the GUI module 920. The information about the good may include its name, SKU, description, price, position in the catalog hierarchy, and/or any other information known about the good. Preferably, the database interface 922 performs any formatting of the information, if necessary, and passes the information to the classification module 301 in the central knowledge base 110.
The classification module 301 preferably utilizes the HS module 310 to find the most likely matching classifications in the selected country or countries for the identified good or goods. In one embodiment, the output of the classification module 301 is a ranking of the one or more classifications in one or more countries in which the good is likely to fall. Since any given classification (i.e., node in the unified HS tree 410) may be associated with one or more other classifications through merged nodes or cross-references, each classification returned by the classification module 301 may pertain to multiple countries.
Oftentimes, the classification module 301 will return classifications having fewer than the full number of digits of precision, i.e., the returned classifications are not leaf nodes in the unified HS tree 410. In some situations, the classification module 301 cannot classify the good to the precision required at the leaf node.
In other situations, it is unnecessary or undesirable for the classification module 301 to classify a good at the maximum precision. There are situations when it is desirable to stop classifying the good after a certain level of precision. For example, if every classification beneath a certain level of a branch of the unified HS tree 410 has the same entry rates (duties, taxes, fees, etc), then all classifications below that point can be treated as the same for landed cost purposes and there is no reason to classify the good any further because it will not affect the landed cost estimate. Because the stop location may have only six (or even four) digits of precision, and the leaf nodes of the unified HS tree 410 may have 20 or more digits, it is inefficient and costly to classify the good at greater than the necessary levels of precision.
Accordingly, a preferred embodiment of the harmonizer 612 interfaces with the module 422 in the unified HS tree 410 holding the potential stopping points and selectively indicates when a reached node is a potential stopping point. Preferably, the user can use an interface provided by the GUI module 920 to selectively indicate whether to use the potential stopping point as the classification or to continue classifying the good at a greater level of precision.
In one embodiment of the present invention, the classification module 301 selects keywords from the received description of the good and then searches for the keywords in the HS classification descriptions. If no description is available, the classification module 301 preferably searches on keywords generated from the other received information about the good.
Alternative embodiments of the classification module 301 perform more sophisticated searching. For example, one embodiment uses a stored thesaurus (not shown) to generate search keywords related to the words in the description. Another embodiment assigns weight values to the search terms and gives more weight to those terms that are likely to produce valid results. Yet another embodiment of the classification module 301 uses statistical modeling to analyze feedback from the user and assign more frequently-selected classifications a greater weight in subsequent search results.
Moreover, one embodiment of the classification module 301 includes logic for automatically improving its classifications over time by adding new words and associations to the HS tree 410 in response to users' harmonizations. Thus, the classification module 301 remembers harmonizations selected by users, and uses these harmonizations to improve the classifications selected in response to future harmonization of the same, or similar, goods. This feature can preferably be selectively disabled in order to avoid mis-training the classification module 301.
In one embodiment, the classification module 301 can be overridden by user-specified classification rules stored in the custom content 322 module in the database 112. In one embodiment, the classification module 301 (or another module in the system) provides the user with a graphical wizard that allows the user to specify rules for determining classifications. In one embodiment, the classification module 301 allows the user to specify rules such as “If SKU is ‘x,’ then use classification ‘y’” or “If the good's description contains ‘PDA,’ then use classification ‘z.’” These classifications are returned by the classification module 301.
The output of the classification module 301 is preferably passed back to the database interface 922. The database interface 922 preferably reformats the classifications, if necessary, and passes it to the GUI module 920. The user interacts with the GUI module 920 to classify the goods in the catalog 910 according to the HS classifications returned from the classification module 301. The end-result is the harmonized catalog 924. The user preferably uses the knowledge workbench 118 to store the harmonized catalog 924 in the custom content module 322 in the database 112 of the central knowledge base 110.
In a preferred embodiment, the catalog harmonizer 612, in addition to classifying a good with an HS code, returns an HS identification (HS ID) to the user. An HS ID is a unique ID associated with the node (i.e., HS code) in the unified HS tree and represents the HS code at a particular point in time. Preferably, the system 100 stores HS IDs in the HS module 310 in the database 112. In one embodiment, if a change occurs to the unified HS tree that affects the HS code, the system 100 indicates to the user that the HS code identified by the HS ID has changed. In another embodiment, the user occasionally provides the HS IDs to the system 100 to determine whether the HS codes have changed.
When a country makes a change to an HS code, user action may be required. For example, a country may eliminate an HS code or change a leaf node into a parent by giving it two or more new descendents. In the first case, an eliminated HS code, the HS code identified by the HS ID becomes invalid and the user preferably re-harmonizes the good. In the second case, new child nodes, the HS code and its associated HS ID remain valid, but the user preferably re-harmonizes the good in one of the new child nodes. Other situations where an HS code change may require user action include when a country changes the numbering associated with a code, changes a code so that it is no longer a potential stopping point, and/or changes the description associated with a code. The system 100 preferably retains all custom content and learning associated with changed nodes.
If the unified HS tree is modified in a way that changes a node but does not invalidate the node's associated HS ID, such as when the node is merged with another node, the system 100 preferably redirects the HS ID to the new or changed node. In one embodiment, the system maintains an HS ID redirection table (not shown) in the database 112. This table points the old HS ID to the new or changed node. In this manner, the HS tree can be modified without invalidating HS IDs.
FIG. 10 is an illustration of an embodiment of the GUI 1000 for the catalog harmonizer 612 produced by the GUI module 920 for classifying goods in the catalog 910 according to the HSs of one or more countries. Those of skill in the art will recognize that many variations of the GUI 1000 are possible. The GUI 1000 of FIG. 10 is divided into two main areas. The left side of the GUI 1000 is the catalog views area 1010. This area 1010 preferably displays a graphical representation 1012 of the catalog according to the selected view. In one embodiment, the views include a hierarchical tree view showing the catalog as a hierarchy of goods, a marketing view showing how the goods in the catalog are configured for marketing and selling the goods, a manufacturing view showing how the goods are assembled on the manufacturing floor, an engineering view showing how the goods are designed, and a sets view showing how the goods are declared to customs (also known as a “kits” or “bills-of-materials” view). The sets view is preferably utilized for duty optimization (also referred to as “duty engineering”) purposes.
In FIG. 10, the catalog is being viewed as a hierarchical tree, where each node of the tree represents a particular class or subclass of goods. Preferably, nodes can be expanded to display a list 1014 of goods classified in the catalog hierarchy at the nodes. Preferably, the GUI 1000 provides a graphical icon 1016 indicating whether a particular good has been classified. In one embodiment, the icon 1016 is colored to indicate the status of the good. In alternative embodiments, different techniques can be used to indicate whether a good has been harmonized, such as changing the color of the text for the good, changing the shape of the icon 1016, etc. Preferably, the user uses normal navigation techniques, such as arrow keys, mouse clicks, etc. to navigate through the catalog hierarchy 1012, select particular nodes in the tree, and/or select one or more goods listed 1014 at a node.
The right side of the GUI 1000 is preferably the information area 1018. This area 1018 displays fields containing information about the specific good, goods, or nodes selected in the catalog hierarchy area 1010. The fields are preferably editable, so that the user can update the information. This information is preferably contained in the catalog itself, although it can also be stored separately. In one embodiment, the displayed information includes the good's number (e.g., SKU number), name, description, duty units, preferences, United States Export Control Classification Number (ECCN), if applicable, and country of origin.
The displayed information preferably also includes information necessary or useful for calculating the shipping cost for the good, such as the dimensions of the good with or without packaging, the weight of the good, the quantity of the good included in one unit, whether the good is stackable, etc. Alternative embodiments of the GUI 1000 can list additional or different information about the good.
Preferably, the catalog harmonizer 612 includes interfaces and controls (not specifically shown in FIG. 10) that allow the user to simultaneously assign the same HS code to multiple goods. For example, if the user knows that all goods at a certain node in the hierarchical catalog 1012 should be assigned the same HS code, the user uses the interfaces and controls to select the node and assign it the code. All of the goods at the node will inherit the HS code. In the same manner, the user can preferably assign an HS code to a parent node and the catalog harmonizer 612 will automatically cause all goods belonging to nodes descending from that parent node to inherit the HS code.
The information displayed by the GUI 1000 also preferably includes the countries for which a particular catalog category or good should be harmonized. The user selects these countries, and then preferably invokes the harmonizer wizard 926 (which preferably appears in a separate window) to harmonize the selected good or goods in the selected countries.
Launching the harmonizer wizard 926 preferably causes the database interface 922 to interact with the classification module 301 and the HS module 310 in the central knowledge base 110 and return one or more suggested HS classifications for the selected good in at least one of the selected countries. The harmonizer wizard 926 presents the user with an “initial results” page (not shown) containing the suggested HS classifications and the user selects from among them. Then, the user uses the harmonizer wizard 926 to harmonize the good in the country or countries. Once the harmonization is finished, the harmonizer wizard 926 preferably closes its window, and the countries and their HS codes for the selected category or good are listed in the information area 1018.
In an alternative embodiment of the system 100, the harmonizer portion of the catalog harmonizer 612 executes as a standalone application. In this embodiment, the harmonizer portion presents the user with an initial page with which the user provides a description of a good and selects the country or countries in which to harmonize the good. Then, the user invokes the harmonizer wizard 926. After the harmonizer wizard 926 executes, the user is provided with a page showing the good and the associated HS codes.
FIG. 13 is an illustration of an embodiment of the GUI 1300 for the harmonizer wizard 926 according to an embodiment of the system 100. Those of skill in the art will recognize that many variations of the GUI 1300 are possible. The user preferably uses the harmonizer wizard GUI 1300 to harmonize goods in the catalog according to one or more countries' HSs. In one embodiment, the GUI 1300 includes a countries area 1310 that lists the countries in which the good will be harmonized by the wizard 926. Preferably, one of the countries is highlighted to indicate that it is selected.
The GUI 1300 also preferably includes a tree area 1312 that displays a representation of the nodes in the selected country's HS tree. The tree area 1312 may indicate, through highlighting or some other means, that a particular node is selected.
The GUI 1300 also preferably includes a text area 1314 that includes a description of the currently-selected node in the HS tree, along with available child nodes. For example, if the selected node corresponds to HS code “8524.99.10,” and the current country is Canada, the description may read: “Magnetic disks of an educational, scientific, or cultural character . . . ” The GUI 1300 also preferably displays controls 1316 with which the user can navigate the nodes of the tree 1312.
The user preferably utilizes the GUI 1300 to pick the HS classification that best fits the good or goods being harmonized. This classification may be associated with one or more countries because the node may be merged and/or cross-referenced. These one or more countries may be the same as the set of countries selected by the user, or different but having at least one country in common. The harmonizer wizard 926 may ask the user to answer refining questions and navigate through the unified HS tree 310 hierarchy, starting at the picked classification, until the harmonization code (typically a leaf node or stopping point) for the good is determined for one country. Since the leaf node may be merged, the harmonization code may apply to multiple countries.
If there are remaining countries for which the good must be harmonized, the wizard 926 preferably analyzes the cross-references from the harmonized nodes to find nodes associated with the HS trees of the remaining countries. The wizard preferably follows the cross-reference that points to the node associated with the most remaining countries. At this point, the user uses the wizard 926 and controls 1316 to answer refining questions and navigate past the cross-referenced node until the harmonization code is determined. If there is no cross reference, the wizard 926 preferably searches up the HS tree hierarchy of the selected node until a node in common with (i.e., merged or cross-referenced) a node from one of the remaining countries is identified.
Returning to FIG. 6, the knowledge workbench 118 also preferably includes a denied parties/licenses editor module 614. A user uses this module 614 to enter custom denied parties, custom license requirements, and/or exceptions to the denied parties and license requirements information held in the compliance module 314 in the database 112. Preferably, the custom information is held in the custom content module 322 in the database 112.
The rules editor module 616 in the knowledge workbench 118 preferably allows the user to create custom rules that affect the operation of the system 100. For example, the user can create rules that say “pad all quotes by 1.5%,” “ignore quota restrictions for goods X, Y, and Z being shipped to Mexico,” “add two inches to specified dimensions to allow for packaging,” “add two days to all estimated shipping times” etc. In one embodiment, these rules are compiled by the rule compilation module 302 in the central knowledge base 110 and stored in the custom content module 322 in the database 112.
The administrator module 618 in the knowledge workbench 118 preferably allows certain users to start, stop, and restart the various modules provided on the local/remote server 110 and/or knowledge workbench 118. The administrator module 618 also preferably allows certain users to add, modify, and delete other users and their permissions. For example, not all users may be allowed to enter custom rules or denied parties or harmonize goods.
Preferably, the denied parties/licenses editor 614, rules editor 616, and administrator 618 modules are implemented as wizards. Alternative embodiments of the knowledge workbench 118 may contain greater, fewer, or different modules than those described herein as may be necessary to support the functionality of the system.
Returning to FIG. 1, the applications server 124 is preferably a conventional computer system holding additional application modules for execution on the system 100. The application modules on the applications server 124 preferably access the content in the central knowledge base 110 through the API 126. Accordingly, the functionality of the system 100 can be expanded through the application modules.
FIG. 11 is a high-level block diagram illustrating the application modules in the applications server 124 according to one embodiment of the system 100. Of course, alternative embodiments may have more, fewer, or different application modules than those illustrated in FIG. 11. A custom applications module 1110 preferably stores custom application modules developed by the customer or another entity. This module 1110 illustrates that the customer is free to extend the functionality of the system 100 by developing custom modules.
A documentation module 1112 preferably supplies information about documents that may be required or desired when shipping goods among the destinations supported by the system. This module 1112 preferably utilizes the content in the central knowledge base 110 to determine any needed information about the goods and shipment and then uses this information to identify and generate necessary documents. In one embodiment, the functionality of the documentation module 1112 is provided by the TRADEPAQ product available from TRADEPAQ Corporation of New York City, N.Y.
An optimizations module 1114 preferably performs duty engineering functions, such as identifying optimal manufacturing and warehousing locations, based on the information in the central knowledge base 110. For example, in one embodiment the optimizations module 1114 generates a matrix of destinations, warehouse locations, and unit landed costs and uses this matrix as an input into an optimization system in order to identify the optimal warehouse locations with respect to shipping costs, tariffs, and/or other variables. Other embodiments may analyze the information in the system 100 to perform other types of optimizations. One embodiment of the optimization module 1114 utilizes an optimization system from i2 Technologies, Inc. of Dallas, Tex.
A sales information module 1116 preferably integrates customer and sales information directly into the system. In one embodiment, the sales information module includes the Siebel Sales application available from Siebel Systems, Inc. of San Mateo, Calif.
FIG. 14 is a flowchart illustrating the operation of the landed-cost generation module 305 according to an embodiment of the system 100 of FIG. 1. It should be understood that the FIG. 14 represents only one possible embodiment of the landed-cost generation module 305 and the steps illustrated therein may be performed in a different order or omitted, or additional steps may be added, in alternative embodiments of the module.
The module 305 receives 1410 information about a shipment of goods. This information enables the module 305 to identify the particular type of good or goods, the quantity of the goods, and the goods' origin and destination. Depending upon whether a user is interacting with the system in a stateful, semi-stateful, or stateless manner, some or almost all of this information may be supplied via the API 126 or already stored in the central knowledge base 110.
The landed-cost generation module 305 preferably utilizes the information about the goods to determine 1412 the classification of the goods in the HS tree of the destination country, if necessary. Preferably, the landed-cost generation module 305 determines the classification by accessing the harmonized catalog 924 stored in the custom content module 322 in the database 112. The landed-cost generation module 305 preferably utilizes the classification to access the tariffs module 312 and determine 1412 any tariffs or other charges that are applicable to the shipment of goods.
The landed-cost generation module 305 also preferably determines 1414 the freight rates for the goods. Preferably, the module 305 determines the freight rates by accessing the freight rates and/or executing the rules stored by the freight rates module 316 in the database 112. The landed-cost generation module 305 may also access the packaging information stored in the packaging module 319. With this information, the landed-cost generation module 305 can determine the approximate freight rates for shipping the goods from the origin to the destination.
In some embodiments, the landed-cost generation module 305 determines 1416 other costs that affect the landed cost estimate. For example, the module 305 preferably determines the cost of the goods themselves. The module 305 also preferably identifies and applies any custom rules (such as quote padding) held in the custom content module 322. The module 305 also preferably accesses the trade information module 321 in the database 112 to retrieve currency exchange rates in order to perform any necessary currency conversions.
Once this information has been assembled, the landed-cost generation module 305 preferably outputs 1418 a landed cost estimate. In one embodiment, this estimate is the sum of the various costs calculated by the module 305. Alternative embodiments of the module 305 use different formulae for calculating the estimate. The module 305 preferably provides the estimate to the requester via the API 126.
In sum, the present invention allows a user to quickly and accurately determine answers to questions related to domestic and international shipping of goods. The system 100 utilizes the content in the central knowledge base 110 to determine a landed cost for goods, whether the shipment will be denied, when the goods will arrive, what documents will be needed to support the shipment, and where the goods should be warehoused to maximize efficiencies.
The above description is included to illustrate the operation of the preferred embodiments and is not meant to limit the scope of the invention. The scope of the invention is to be limited only by the following claims. From the above discussion, many variations will be apparent to one skilled in the relevant art that would yet be encompassed by the spirit and scope of the invention.

## Claims

1. A system for delivering real-time landed cost information comprising a tariff cost for an indicated good associated with a specific country, comprising:
a database adapted to store content associated with a plurality of countries, the content comprising:
a harmonized system (HS) module for storing a data structure representing an HS tree associated with the plurality of countries, the HS tree having a hierarchy of nodes in which the good can be classified, wherein the nodes comprise at least 1) a plurality of classification nodes, each classification node accounting for a logical classification in the HS tree that is not distinguished by an HS code, 2) a plurality of standard nodes, each standard node being associated with a respective HS code for a particular country of the plurality of countries, and 3) a plurality of merged nodes, each merged node representing two or more countries' standard nodes having a shared node description, wherein each classification node has at least one of one or more subordinate standard nodes from the plurality of standard nodes or one or more subordinate merged nodes from the plurality of merged nodes; wherein cross-reference data is stored and identifies different non-merged nodes in the HS tree that have the same meaning;

a tariffs module for storing tariff data associated with said HS codes, the tariff data being used to calculate tariff costs for goods, wherein specific tariff data is selected for a particular good based on an HS code being associated with the specific tariff data and the specific good;
a compliance module for storing import or export data associated with the HS codes, the import or export data indicating restrictions associated with importing or exporting the goods, wherein specific import or export data is selected for the particular good based on the HS code being associated with the specific import or export data and the specific good; and
a processor configured to:
(1) receive a query over an application programming interface (API) requesting said real-time landed cost information for the indicated good for said specific country;
(2) access the database to retrieve a corresponding HS code associated with the good, using the cross-reference data to find the node that corresponds to the HS code for the specific country;
(3) access the tariffs module to retrieve corresponding tariff data associated with said good to determine the tariff cost, the corresponding tariff data being retrieved based on the corresponding HS code;
(4) access the compliance module to retrieve corresponding import or export data indicating one or more corresponding restrictions, the corresponding import or export data being retrieved based on the corresponding HS code;
(5) calculate the landed cost information comprising at least the tariff cost; and
(6) generate a response to the query comprising the landed cost information and the one or more corresponding restrictions for said good.

2. The system of claim 1, wherein each merged node of the plurality of merged nodes comprises one of: 1) two or more nodes that are substantially similar with respect to HS code and description; and 2) two or more nodes that are substantially similar with respect to description but not to HS code.

3. A method for providing real-time cost information comprising a tariff cost for an indicated good associated with a specific country comprising the steps of:
receiving, by at least one computing device comprising at least one processor, a query, the query comprising at least data identifying said indicated good and the specific country;
accessing a database storing content associated with a plurality of countries, the content comprising:
a harmonized system (HS) module storing a data structure representing an HS tree associated with the plurality of countries, the HS tree having a hierarchy of nodes in which the good can be classified, wherein the nodes comprise at least 1) a plurality of classification nodes, each classification node accounting for a logical classification in the HS tree that is not distinguished by a particular HS code, 2) a plurality of standard nodes, each standard node being associated with a respective HS code for a particular country of the plurality of countries, and 3) a plurality of merged nodes, each merged node representing two or more countries' standard nodes having a shared node description, wherein each classification node has at least one of one or more subordinate standard nodes from the plurality of standard nodes or one or more subordinate merged nodes from the plurality of merged nodes; wherein cross-reference data is stored and identifies different non-merged nodes in the HS tree that have the same meaning;

retrieving, by the at least one processor, an HS code associated with the indicated good, using the cross-reference data to find the node that corresponds to the HS code for the specific country;
accessing, by the at least one processor, a tariffs module storing tariff data associated with said HS codes;
retrieving, by the at least one processor, corresponding tariff data associated with the good based on the HS code;
calculating, by the at least one processor, the tariff cost associated with the good based on the corresponding tariff data;
accessing, by the at least one processor, a compliance module storing import or export data associated with the HS codes to retrieve corresponding import or export data indicating one or more corresponding restrictions associated with importing or exporting the good, the corresponding import or export data being retrieved based on the HS code; and
generating, by the at least one processor, a response to the query comprising the tariff cost and the one or more corresponding restrictions associated with the good.

4. The method of claim 3, wherein each merged node of the plurality of merged nodes comprises one of: 1) two or more nodes that are substantially similar with respect to HS code and description; and 2) two or more nodes that are substantially similar with respect to description but not to HS code.