Binding Tariff Information (BTI) occupies an important place in customs legislation. It also holds great value for companies engaged in importing and exporting. BTI determines the classification of a product in the customs tariff schedule, and this information enables companies to plan their trade and calculate costs more accurately and reliably. 🔐
However, fully understanding what the concept of BTI is, learning how to apply for it, and knowing how long this information remains valid may not always be easy.
In this article, we will examine in detail what Binding Tariff Information is, how to apply for it, and how long the BTI concept is valid. Now, let’s take a close look at the details that will enable you to make your business's trade strategies more consciously and effectively! 👇⬇️
What is Binding Tariff Information (BTI)?
Binding Tariff Information (BTI) is an information specified for the classification of goods in the Turkish Customs Tariff Schedule index. It appears as a decision given by the Ministry or the Customs and Trade Regional Directorates authorized under the Ministry in response to the request of individuals or institutions.
Why is Binding Tariff Information Issued?
• The declaration process and customs applications speed up with Binding Tariff Information. In this way, customs control and international trade operations take place as easily as possible. At the same time, this situation reduces the cost of foreign trade transactions.
• With Binding Tariff Information, it is aimed to reduce disputes between the institutions carrying out the trade and the Customs Directorate arising from the tariff position of the goods.
• It is aimed to minimize the time losses caused by the problem of classification of goods during customs applications. For example, the examination and control of risky goods are details that need to be given sufficient time during the Customs application.
• The institution facilitating the trade provides official information regarding the classification of the goods in the Turkish Customs Tariff Schedule index.
• The profit and application possibility of a commercial transaction at the international level may not be predicted in advance. It becomes easier to do this with Binding Tariff Information.
• Classification rules must be applied uniformly and correctly. It is also important that the classification is harmonized and the foreign trade regime is applied equally and correctly between the trading institutions. 🔛
What Advantages Does Binding Tariff Information (BTI) Provide?
Thanks to Binding Tariff Information (BTI), it is possible to have many advantages. Details regarding all products put on the market and planned to pass through customs are revealed with the relevant administrative decision.
Products are mostly distinguished from one another by specific code categories. Using these codes for easier processing of goods during customs is for more practical application. Each product group has different codes, and these codes help to ensure that the control of goods is carried out correctly and completely at customs entry and exit.
Binding Tariff Information (BTI), on the other hand, carries the following advantages: ⬇️
• It includes the specific and easy classification of product groups in the market. Thus, the inspection and approval times of products that have entered or exited customs are shortened.
• Taxation is applied to products entering customs. The determination of product groups becomes much more practical with BTI. Thus, the regulation on taxes to be applied on the products is handled more easily.
• All Foreign Trade Legislation Provisions that must be applied to the goods in question are determined based on product groups. Binding Tariff Information (BTI) clearly shows under which provisions the goods should be evaluated.
• Similar coding systems exist worldwide for Binding Tariff Information. Thus, the procedures to be carried out during any customs transit of the products become standardized.
How to Apply for Binding Tariff Information?
In order to apply for Binding Tariff Information, descriptions and additional documents regarding the products that need to be processed at customs are requested. There may also be cases where the grouping the product should enter cannot be determined. For example, BTI is requested for products newly entering the market since they are evaluated within this group.
The creation of Binding Tariff Information, which is formed by the written declaration of the person, is carried out through application to the relevant ministries. In order to obtain BTI, it is mandatory for the manufacturer company to apply to the Customs and Trade Regional Directorates.
How to Obtain the Binding Tariff Information (BTI) Application Form?
To obtain the form subject to Binding Tariff Information, you must apply to the authorized directorates. The Binding Tariff Information (BTI) application is made in accordance with the application form included in the mentioned annex of the regulation. The directorates authorized in Annex 1 of the Customs Regulation are appropriate places to obtain the application form.
Where to Apply for Binding Tariff Information (BTI)?
The Binding Tariff Information application is made to the Customs and Trade Regional Directorates. It is created with the application form specifically based on the information template requested in the annex of the relevant regulation. The form, prepared in accordance with the requested details, is delivered to the Customs and Trade Regional Directorates authorized by the ministry, thus completing the BTI application.
What Information and Documents Should Binding Tariff Information (BTI) Applications Contain?
The instructions in the Annex-1 section of the Customs Regulation can be taken as a reference to learn the information that must be included in the application form to be prepared. The following information and documents are required for BTI applications: 👇
• Name and address of the right holder
• If the applicant is not the right holder, the name and address of the applicant
• Detailed description of the relevant goods showing their position in the Turkish Customs Tariff Schedule index
• Copies of supplements and declarations regarding cases where the goods to be grouped have been previously exported or imported by the right holder
• Samples, sketches, or plans that will help the Customs Administration process and accurately determine the place of the product or products in the Turkish Customs Tariff Schedule index
• Certified translation of documents printed in a foreign language
• Matters requested to be kept confidential and information related to these matters
• Documents showing that the export or import of the goods is actually planned
• Binding agreements on the purchase and sale of goods, proforma invoice
How is Binding Tariff Information Issued?
Binding Tariff Information is processed as a result of the application examined by the competent authorities if the conditions are met. The period determined for the examination of the BTI application is 3 months. While a fee is charged for goods requiring analysis, no fee is expected for other Binding Tariff Information. Binding Tariff Information (BTI) data is a resource regulated by the Ministry of Customs and Trade and accessible via the ministry's website.
For Which Goods is BTI Not Issued?
Binding Tariff Information is not issued for the following goods;
• A product subject to a Customs Declaration notification
• Applications containing more than one item
• A product that is not based on a planned export or import application
• Goods with information that does not comply with the commercial description in fields such as brand, model, and product code
• Goods coming in bulk
How Many Years is Binding Tariff Information (BTI) Valid?
Binding Tariff Information (BTI) is a document that can only be used by the right holder. This document remains valid for 6 years starting from the date of issue.
Throughout this article, we have examined in detail what Binding Tariff Information (BTI) is, the application process, and its validity period. BTI plays an important role, especially for companies engaged in international trade, in cost planning and decision-making processes.
A good preparation and a conscious application process ensure that your company maintains its trade activities in an effective and efficient manner. Remember, always acquiring more knowledge and constantly staying up-to-date is the key to successful business management. 👈
