Binding Tariff Information (BTI)
What is a Binding Tariff Information (BTI)?
Binding tariff information (BTI) is a written decision issued by customs authorities to clarify the tariff classification of specific goods. It provides importers and exporters with an accurate classification of goods and ensures transparency and predictability of customs duties. BTI decisions are generally valid for three years and are legally binding on all relevant customs authorities. In the EU, BTI is administered by the EU Tax and Customs Union to ensure that the correct harmonized tariff code (HS code) is assigned to goods to apply the correct customs duties.
The Binding Tariff Information application process
1. Collect the necessary information
Before applying for a Binding Tariff Information, importers or exporters must have complete product information, including technical specifications, components, and intended use. Accurate and detailed information is key to ensuring correct classification.
2. Submit the application
The applicant submits the Binding Tariff Information application, which contains all the necessary details, to the customs authorities of the importing country. The application can be submitted in the EU via the electronic trade portal. It should be processed by the country’s customs office where the applicant is legally registered or where the goods are intended to be imported/exported.
3. Customs review and decision
The customs authorities will review the application to ensure that it meets the requirements and will ultimately issue a Binding Tariff Information decision specifying the classification of the goods and the applicable customs tariff. This decision is legally binding on the applicant and the relevant customs authorities.
Advantages of Binding Tariff Information
- Increased legal certainty:Binding Tariff Information provides businesses with a clear basis for classifying goods, reducing tax disputes caused by incorrect classification.
- Ensures the correct tax rate: Correct classification of goods avoids additional costs due to incorrect application of customs duties.
- Improves customs clearance efficiency: Obtaining Binding Tariff Information in advance helps importers and exporters to complete customs clearance quickly.
- Guides the classification of similar goods: Binding Tariff Information also provides classification references for similar goods, enhancing consistency in trade.
Important note
Applicants may contact their local customs office for general advice before submitting a Binding Tariff Informationapplication, but this information is not legally binding. Binding Tariff Information is only provided as a formal decision and must be used for import and export transactions within its validity period.
In the EU, once a Binding Tariff Information has been obtained, companies must use the decision when importing or exporting goods and declare it to the customs administration. More information can be found on the EU Taxation and Customs Union Directorate-General’s website.
