Binding tariff information

What it means

Binding tariff information is a customs decision that, at a company's request, determines which Combined Nomenclature code a particular product falls under. The classification determines the customs duty rate and any restrictions, licences or anti-dumping measures.

The decision is valid throughout the EU, normally for three years, and binds both the customs authorities and the holder. The company gains certainty that the goods will be classified the same way on every import or export and avoids disputes over duty on individual declarations.

Classifying goods can be complex, especially for technical products, mixtures, sets or multifunctional devices where several codes with different rates may apply. Binding tariff information removes the uncertainty that could otherwise lead to additional duty in an audit.

How it works in practice

The application is filed electronically with the customs authorities and must contain a detailed description of the goods, their composition, function and technical data, often with samples, photos or technical documentation. The company should propose the code it believes is correct and justify it.

Binding tariff information is especially useful for regular imports of large volumes, where even a small difference in the duty rate means significant sums. It also helps for goods that may be subject to anti-dumping duties, which can raise costs considerably.

When using a customs representative or forwarder, it is wise to have the binding tariff information at hand and pass it on. This ensures the goods are classified consistently in customs declarations in line with the decision.

What to watch out for

Binding tariff information covers only the goods precisely described. If the composition, function or technical parameters change, the decision may not apply to the new product and a new one must be requested. Validity can also end if the nomenclature or its interpretation changes.

If customs find that goods were misclassified without binding tariff information, they can assess additional duty and import VAT with interest and penalties, even retrospectively for several years. Where classification is disputed, it pays to apply for binding tariff information in good time.