How Binding Tariff Information provides certainty in tariff classification

Binding Tariff Information (BTI)

Within international trade, correct tariff classification is fundamental. The commodity code assigned to your product determines the applicable customs duties, trade measures, licensing requirements and compliance obligations. An incorrect classification can result in delays, reassessments or financial penalties. At NLD Customs, we support companies in obtaining legal certainty regarding their product classification. One of the most reliable instruments to achieve this certainty is a Binding Tariff Information decision, commonly referred to be as a BTI.

Distribution warehouse building interior and large storage area with goods on the shelf.

What is a BTI?

A Binding Tariff Information decision is an official ruling issued by an EU customs authority confirming the correct commodity for specific goods under the EU customs nomenclature.

When a company intends to import or export goods and requires certainty about the applicable classification, it can request a BTI. Once issued, the decision is legally binding on all customs authorities within the European Union. This means that every EU Member State must apply the confirmed classification when the BTI is valid and properly invoked.

A BTI provides predictability and legal protection. However, it can only be used by the rights holder named in the decision.

Hands of businessman brown suit are signing contract agreement. Contract agreement policy concept.

Who can apply?

Any natural person or legal entity may apply for a BTI. An application can be submitted in the applicant’s own name or on behalf of another party, for example by a customs broker or fiscal representative.

The applicant does not necessarily need to be established in the country where the application is submitted. The request must be addressed to the competent customs authority of the EU Member State where the BTI will be used or where the applicant is established.

BTI applications are submitted electronically via the EU Customs Trader Portal.

What must be included in the application?

A BTI application must concern one specific type of goods. If products differ in composition, characteristics or function, a separate application is required for each product.

The application must provide sufficient detail for customs authorities to determine the correct classification. This includes a clear product description, relevant technical documentation such as specifications or brochures, and samples where necessary. The name and address of the applicant or rights holder must be included, as well as the applicable customs nomenclature, for example the Combined Nomenclature or TARIC.

The applicant must also consent to the storage of the submitted information in the European Commission’s BTI database, which supports uniform classification across the EU.

A step by step overview

How is a BTI processed?

Submission and registration

After submission via the EU Customs Trader Portal, the application is received and registered by the competent customs authority.

EU-level notification

The application is shared at EU level. The European Commission may review the case and provide guidance or comments to ensure consistent classification across Member States.

Assessment and decision

The customs authority assesses the technical details of the goods and determines the correct tariff classification. In principle, a decision is issued within three months after a complete application has been accepted.

EU database registration

Once issued, the BTI is recorded in a central EU database. This database supports harmonized tariff classification and transparency throughout the European Union.

Understanding who can use a BTI decision in customs declarations

Who can rely on a BTI?

Only the rights holder named in the BTI decision may invoke it in a customs declaration. This is usually the applicant. If a customs broker or fiscal representative acts on behalf of the rights holder and submits the customs declaration in that capacity, they may rely on the BTI as well. The BTI reference number must always be mentioned in the customs declaration when it is used. The goods declared must fully correspond to the description in the BTI. Any deviation in composition, technical characteristics or presentation may invalidate its applicability.

Validity and invalidation

A BTI is valid for three years from the date of issuance and is recognized in all EU Member States. During its validity period, the BTI binds both customs authorities and the holder regarding the tariff classification of the specified goods, provided that the customs formalities are completed after the date of issuance. A BTI automatically expires after three years. It may also become invalid earlier if:

  • EU legislation changes the wording of tariff headings.
  • The European Commission adopts a classification regulation assigning the product to a different commodity code.
  • Legal provisions affecting the classification are amended.

In such cases, the BTI ceases to be valid from the date specified in the relevant legal act.

Why consider a BTI?

For companies operating in international logistics and trade, tariff certainty is not optional. It directly affects duty exposure, pricing, supply chain planning and regulatory compliance. A BTI provides:

  • Legal certainty across the entire EU.
  • Protection against retrospective reclassification.
  • Reduced risk of disputes with customs authorities.
  • Greater predictability in landed cost calculations.

As a knowledge center for customs services within logistics, NLD Customs supports companies in assessing whether a BTI is appropriate, preparing technically sound applications and aligning product documentation with customs requirements. If you require assistance with tariff classification or the BTI application process, our specialists are available to advise you.

Need guidance on tarrif classification?

Binding Tariff Information provides businesses with legal certainty about the correct tariff classification of their goods. By obtaining an official ruling from customs authorities, companies can ensure that their products are classified consistently and in accordance with the applicable tariff regulations.

For companies involved in international trade, accurate tariff classification is essential for determining duties, complying with customs requirements and avoiding potential disputes during import procedures. If you would like to learn more about Binding Tariff Information or need guidance on tariff classification, our specialists are available to assist.

Get in touch

Other knowledge

Authorized Economic Operator (AEO)

T1 transit declarations

Fiscal representation

Veterinary declarations

ATR certificate

Scroll to Top