Using binding tariff information as a reference

A Binding Tariff Information (BTI) decision is a legal decision by an EU customs authority on how a product is classified. It binds the customs authorities as against the holder, and the holder as against the customs authorities, on the classification only, and it is valid for three years from the date it takes effect [1]. The Commission publishes BTI decisions in the EBTI database, with confidential information protected [2], and anyone can search them by code, keyword, country or validity date [3]. A decision issued to someone else does not bind customs on your goods, but it is often the quickest way to see how customs classified something similar, and on what grounds.

What a BTI decision is

Article 33 of the Union Customs Code sets the rules [1]:

• Customs take BTI decisions on application, and an application that does not relate to an intended use, of the decision or of a customs procedure, is not accepted.
• The decision binds customs as against the holder only for goods whose customs formalities are completed after it takes effect, and binds the holder from the date the holder is notified.
• It is valid for three years from the date it takes effect.
• To use it, the holder must be able to prove that the goods declared correspond in every respect to those described in the decision.

A BTI settles the classification, not the duty: German customs points out that the duty rate and the other measures attached to the code are not part of the decision [5]. When a holder declares goods covered by a BTI, the declaration states the BTI decision reference number [4]. Dutch customs treats a declaration that leaves the reference out as an incorrect declaration, and names the document code to use for it in DMS, C626 [9].

Searching EBTI

The EBTI consultation lets you search by country, BTI reference, validity dates, keyword, nomenclature code or description [3]. A practical order is to search by the six or eight digit code you expect, then by keyword, and to read each decision's description of the goods rather than its code.

The database holds both valid and invalid decisions [2], so check the start and end of validity on every result. A decision can stop applying before its three years are up: it ceases to be valid when an amendment to the nomenclature, or a measure determining the classification of goods, makes it inconsistent with the law, and it is revoked when it no longer fits the interpretation given by explanatory notes, a judgment of the Court of Justice or a decision of the World Customs Organization on the Harmonized System [1]. A decision based on inaccurate or incomplete information from the applicant is annulled [1].

Reading someone else's decision

German customs puts the limit plainly: a BTI can be used only by its holder [5]. For everyone else, a decision is a reference, and its value depends on how closely the goods match. Compare the goods described in the decision with yours on the facts the tariff turns on: material, construction, function, presentation. A decision on a porcelain plate says nothing about a stoneware one.

Several decisions on similar goods that point the same way show how customs has read the tariff for them. Decisions that point different ways are a reason to look for the detail that separates the goods, and to ask the supplier about it before declaring.

Applying for your own

The Commission asks applicants to apply only when they plan an import or export, to make a separate application for each type of product, and to describe the goods in detail, with images or samples where possible [2]. It also warns that a decision based on incomplete or inaccurate information is annulled [2]. An application covers only goods with similar characteristics whose differences are irrelevant to their classification [4].

Germany. Applications go electronically through the national Zoll-Portal, and the office responsible for issuing German BTI decisions is the Hauptzollamt Hannover [7]. A German BTI is issued free of charge in principle; costs of analyses, expert opinions on samples or returning samples are charged to the applicant [8]. If a decision cannot be issued within 120 days of accepting the application, the applicant is told why [6]. An application made only for statistical purposes is refused [6].

The Netherlands. Applications go electronically through the EU Customs Trader Portal, with eHerkenning at level EH3 [10]. Customs confirm acceptance of the application within 30 days and decide in principle within 120 days of acceptance [10], the deadlines Article 22 of the Code sets for decisions on application, with its rules for extension [1].

When a BTI is worth it

A BTI costs time and a precise description. It is worth it for goods that recur, where two codes carry different duties or measures, and where the classification has been questioned before. For a one-off shipment, the customs authority can give general, non-binding information on classification before any application [2].

Athren prepares the case from the shipment email; your declarant checks what is open and files it. Athren files nothing.