What is Binding Tariff Information (BTI)? How to Apply? How Many Years is BTI Valid?

Binding Tariff Information (BTI) holds an important place in customs legislation. It also carries great value for companies engaged in importing and exporting. BTI determines the classification of a product in the customs tariff schedule, and this information allows companies to carry out their trade planning and cost calculations in a more accurate and reliable manner. 🔐

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 discuss 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 closer look at the details that will enable you to form your business's trade strategies in a more conscious and effective way! 👇⬇️

What is Binding Tariff Information (BTI)?

Binding Tariff Information (BTI) is an information specified for the classification of goods in the index of the Turkish Customs Tariff Schedule. It appears as a decision issued by the Ministry or the Regional Directorates of Customs and Trade 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 businesses 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 trading institution and the Customs Directorate arising from the tariff heading of the goods.

• It is aimed to minimize time losses caused by the product classification issue during customs applications. For example, the inspection and control of risky goods are details that require sufficient time during the Customs application.

• The institution providing the trade obtains official information regarding the classification of goods within the index of the Turkish Customs Tariff Schedule.

• The profit and application feasibility 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. Likewise, the harmonization of classification and the equal and correct application of the foreign trade regime between the trading institutions are also important. 🔛

What Advantages Does Binding Tariff Information (BTI) Provide?

It is possible to have many advantages thanks to Binding Tariff Information (BTI). Details regarding all products put on the market and planned to pass through customs are revealed through the relevant administrative decision.

Products are mostly distinguished from each other by specific code categories. Using these codes for easier processing of goods during customs is for a more practical application. Each product group has different codes, and these codes help ensure the correct and complete control of goods at customs entry and exit.

Binding Tariff Information (BTI), on the other hand, carries the following advantages: ⬇️

• It involves specific and easy classification of product groups in the market. Thus, the inspection and approval periods of products that have entered or exited customs are shortened.

• Taxes are applied to products entering customs. Determining product groups becomes much more practical with BTI. Thus, the regulation of taxes to be applied on products is handled more easily.

• All Foreign Trade Legislation Provisions that need to be applied to the goods in question are determined based on product groups. Binding Tariff Information (BTI) clearly demonstrates under which provisions the goods should be evaluated.

• Similar coding systems for Binding Tariff Information exist worldwide. Thus, transactions to be made in any customs transit of products become standardized.

How to Apply for Binding Tariff Information?

To apply for Binding Tariff Information, descriptions and additional documents regarding the products to be processed at customs are requested. There may also be cases where the grouping that the product should fall into cannot be determined. For example, BTI is requested because products newly entering the market are evaluated within this group.

The creation of Binding Tariff Information, which is formulated with the written declaration of the individual, is carried out through application to the relevant ministries. To obtain BTI, the manufacturer must apply to the Regional Directorates of Customs and Trade.

How Can the Binding Tariff Information (BTI) Application Form Be Acquired?

To obtain the form subject to Binding Tariff Information, you need to apply to the authorized directorates in this regard. The Binding Tariff Information (BTI) application is made in accordance with the application form in the aforementioned annex of the regulation. The directorates authorized in Annex 1 of the Customs Regulation are the appropriate places to obtain the application form.

Where is the Binding Tariff Information (BTI) Application Made?

The Binding Tariff Information application is made to the Regional Directorates of Customs and Trade. The application form is created specifically for the information template requested in the annex of the relevant regulation. Prepared in accordance with the requested details, the form is delivered to the Regional Directorates of Customs and Trade authorized by the ministry, and thus the BTI application is completed.

What Information and Documents Should Binding Tariff Information (BTI) Applications Contain?

The instructions in Annex-1 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: 👇

• The name and address of the right holder

• If the applicant is not the right holder, the name and address of the applicant

• Detailed description showing the relevant goods' place in the Turkish Customs Tariff Schedule index

• Photocopy of additional documents and declarations in case the goods to be classified have been previously exported or imported by the right holder

• Samples, sketches, or plans that will help the Customs Administration process and correctly identify where the product or products in question belong in the index of the Turkish Customs Tariff Schedule

• Sworn translation of documents printed in a foreign language

• Issues requested to be kept confidential and information related to these issues

• Documents showing that the export or import of the goods is actually planed

• Binding contracts on the purchase and sale of goods, proforma invoice

How is Binding Tariff Information Prepared?

The Binding Tariff Information is processed if the conditions are met as a result of the application reviewed by the authorized departments. The period determined for reviewing 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 through 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 match the commercial description in fields such as brand, model, and product code

• Products arriving in bulk

How Many Years is Binding Tariff Information (BTI) Valid?

Binding Tariff Information (BTI) is a document from which only the right holder can benefit. This document remains valid for 6 years starting from the date of issue. 

Throughout this article, we examined in detail what Binding Tariff Information (BTI) is, its application process, and its period of validity. BTI plays an important role inside cost planning and decision-making processes, especially for companies engaged in international trade.

Good preparation and a conscious application process ensure that your company maintains its trade activities in an effective and efficient manner. Remember, gaining more knowledge and constantly staying up to date is the key to successful business management. 👈