Using a Binding Tariff Information in Customs Management (EU)

The classification of technically sophisticated products under a customs tariff can be difficult. The importer and customs authorities might therefore disagree on the correct classification of a particular product. A disagreement becomes more likely if the duty rates applicable to the eligible customs tariff numbers differ considerably. It might even result in retrospective duty demands and a legal dispute.

To avoid such conflicts, the EU established the Binding Tariff Information (BTI) as an instrument to provide legal certainty for economic operators with respect to the classification of a product. A BTI is issued on application by the national customs authorities. It is valid for a period of three years. A BTI is binding on the holder and every customs authority in the EU.

All BTIs are published in the "European Binding Tariff Information" (EBTI) database on the Web site of the European Commission (https://ec.europa.eu/taxation_customs/dds2/ebti/ebti_home.jsp?Lang=en).

The BTI reference must be indicated in import as well as export declarations.

In SAP GTS, the reference of the BTI has to be assigned to the product to which it refers. In addition to the BTI reference, the foreign trade organization of the holder and the validity period of the BTI have be specified in the product master data on the Classification tab.

In the customs declaration, the BTI reference has to be entered on the Documents tab on item level in combination with the code C626 Binding Customs Tariff Information. This code is provided in delivery Customizing for customs code lists. It is assigned to the customs code list object PAPTY Papers/Documents/Previous Documents.

If the code VZTA Binding Customs Tariff Information is assigned to the code C626 in the Classification field, SAP GTS defaults the BTI information from the product master data in the customs declaration (SAP Global Trade Services, edition for SAP HANA → Customs Management → Customs Code Lists → Maintain Customs Code Lists for Legal Regulation).