The Binding Tariff Information (BTI) is written documentation of the goods’ classification in the EU. It does not constitute a legal requirement but provides a sense of assurance in knowing the classification of the goods. Different classifications have different tariff rates. BTI helps exporters avoid costly import duties by alerting them to licensing requirements, quotas, and quantitative restrictions in advance. It also aids in calculating customs duties.
A BTI is a document describing a product’s tariff classification. While it is not legally required, it provides an assurance that a product is correctly classified in the EU. Since different classifications have different tariff rates, BTIs help exporters avoid unnecessary hassles and legal risks. The EU has adopted a BTI-based system in order to make this process easier and more efficient. So, getting a BTI is essential for a smoother and more successful import and export process.
How long is a BTI valid for?
A BTI is issued by the EU Taxation and Customs Union. The document is valid only on the date that it was issued. This means that it cannot be used for transactions that have already been completed or are yet to complete customs formalities. It is important to note that a BTI cannot be used for products that are already on the market.
Obtaining a copy of the document is free of charge, so it is worth its weight in gold! When it comes to international trade, having BTI is crucial to avoiding the many complications associated with customs.
It is legally binding for all Customs administrations in the EU and can be valid for up to three years and can be non-valid if new laws are established. In some cases, binding tariff information is valid for six years or longer. However, it can expire sooner if changes in legislation occur. Nonetheless, BTIs are free to use and valid in all parts of the EU.
A BTI can expire before it is used but its validity can be renewed. If it has been issued prior to the EU-wide harmonization, it will be deemed invalid. An updated BTI is not always relevant. The EU has a long-term policy on this document.
A BTI is not valid for past transactions. A BTI is only useful for new transactions. It expires three years after it is issued. The validity of a BTI is not dependent on the date of issue. It is valid for a period of six years if it was issued before May 2016. This information will be valid for a period of three years in some countries. This can be used to determine the duty payable for different goods.
A BTI can be very useful in a number of situations. For example, It will be necessary to check whether the goods are legal in the country in which they are being sold. The Binding Tariff Information will help you avoid any issues with exports that are not legal. If they are, it is wise to follow the instructions. This will help you avoid paying excessive tariffs.
Advantages of a BTI Decision
The BTI saves time and money during the customs clearance process. Without a BTI and if the goods are not identified in the electronic customs tariff, the code numbers that match them must be searched for and found in the customs database before the clearing process can proceed. The process can take time and it can also be costly if the goods are classified incorrectly.
On the part of the trader, a wrong customs declaration can result in fines and even criminal proceedings. If restricted goods or forbidden products are imported, legal actions can be taken upon the importer. The use of BTI decisions can prevent such an event as the decision can point out if a product is restricted.
How to Apply for a BTI Decision?
Applications for BTI decisions and any BTI-related processes has been electronic. Applications are only processed through the EU Customs Trader Portal or the National Trader Portal. You can click here for more information on accessing the EU Customs Trader Portal.
It is important to note that individual countries like Poland, Croatia, the United Kingdom, France, Spain, and Germany host national BTI systems and also a national trader portal.
Things to Consider when applying for a BTI
As mentioned earlier, it is important and necessary to apply for a BTI when considering to venture or import in the EU market. Detailed descriptions of your products with pictures and actual samples can help with the classification. For different types of products, it is essential to use separate applications and indicate the distinctive nature of the goods. Specifications of the products can also be provided and there should be accurate. Misleading details can cause issues and applications can be rejected.
Group of products with similar characteristics can also be classified using a BTI classification or decision. In this case, it is important to indicate any differences within the group of products during the application.
