Tariff classification: when should you request Binding Tariff Information?
A few tariff-code digits can change the applicable duty rate, trigger an anti-dumping duty or determine which import rules apply.
Where tariff classification is uncertain, Binding Tariff Information (BTI) allows an operator to ask customs to take a position before or during recurring transactions.
What is Binding Tariff Information for?
The Binding Tariff Information (BTI) determines a product’s classification under the Combined Nomenclature (CN) or TARIC.
It is particularly useful where a product is difficult to classify, a new trade flow is being introduced or tariff classification has significant financial implications.
Under Article 33 of the Union Customs Code, the decision binds both EU customs authorities and its holder.
Binding Tariff Information is free of charge and generally valid for three years.
The product must correspond exactly to the application
The certainty provided by Binding Tariff Information depends directly on the quality of the description supplied to customs.
The holder must be able to demonstrate that the declared goods correspond in every respect to those described in the decision.
The application should therefore specify the product’s composition, functions, packaging and technical characteristics. The French Customs recommends attaching relevant technical sheets, photographs, diagrams, instructions and manufacturing flowcharts.
A change to the product may therefore call into question whether existing Binding Tariff Information can still be used.
Three years, but not necessarily until expiry
The three-year period is not absolute.
Article 34 of the Union Customs Code provides for several situations in which a decision may cease to be valid before expiry, including where a nomenclature amendment or new classification measure makes it incompatible with applicable law.
Changes to both the product and tariff regulations must therefore be monitored.
Does the Binding Tariff Information still correspond exactly to the imported goods and the classification currently applicable?
Would you like certainty over a product’s tariff classification, or are you facing a challenge to the classification declared? Contact the firm.