Under the Customs Law and Customs Regulation
In international trade, binding decisions have been established to ensure the correct tariff classification of goods, accurate determination of origin, correct calculation of customs duties, and proper implementation of trade policy measures.
Binding Tariff Information (BTI) is binding only with respect to the tariff classification of goods.
Binding Origin Information (BOI), on the other hand, covers the preferential or non-preferential tariff treatment applicable to goods according to their origin status and is legally binding.
According to Customs Law No. 4458;
Article 9.
1. Upon written request, Binding Tariff Information or Binding Origin Information shall be issued by the Undersecretariat or by a customs administration authorized by the Undersecretariat.
2. Binding Tariff Information or Binding Origin Information shall bind the customs authorities vis-à-vis the holder only with respect to the tariff classification or determination of the origin of the goods, and only for goods subject to customs procedures completed after the date on which the information was issued.
3. The holder of the information must prove;
- For Binding Tariff Information, that the goods to be declared correspond in all respects to the goods described in the information provided,
- For Binding Origin Information, that the goods to be declared and the circumstances determining acquisition of origin correspond in all respects to the goods and origin-conferring circumstances described in the information provided,
The holder is required to provide proof of such conformity.
4. Binding Tariff Information is valid for six years from the date of issuance;
Binding Origin Information is valid for three years from the date of issuance.
5. Binding Tariff Information shall cease to be valid in the following circumstances:
a) An amendment is made to the Turkish Customs Tariff Schedule and the information provided no longer complies with the provisions introduced by that amendment,
b) It no longer complies with an amendment to the nomenclature, explanatory notes, or decisions concerning tariff headings of the World Customs Organization that Türkiye is obliged to follow,
c) The person to whom the Binding Tariff Information was issued is notified that the information has been revoked or amended.
In the circumstances specified in subparagraphs (a) and (b) of this paragraph, the date on which the Binding Tariff Information ceases to be valid shall be the date on which the relevant amendments are published in the Official Gazette.
6. Binding Origin Information shall cease to be valid in the following circumstances:
a) The rules of origin are amended pursuant to legislation or an international agreement and the information provided no longer complies with the provisions introduced by that amendment,
b) It no longer complies with an amendment to the World Trade Organization Agreement on Rules of Origin, or to the explanatory notes and decisions relating to that agreement, which Türkiye is obliged to follow,
c) The person to whom the Binding Origin Information was issued is notified that the information has been revoked or amended.
In the circumstances specified in subparagraphs (a) and (b) of this paragraph, the date on which the Binding Origin Information ceases to be valid shall be the date on which the relevant amendments are published in the Official Gazette.
7. The holder of Binding Tariff Information or Binding Origin Information that has ceased to be valid may continue to use such information where, before it ceased to be valid and in reliance on that binding information;
- The holder entered into binding contracts for the purchase or sale of the relevant goods. In such cases, the invalidated tariff or origin information may continue to be used for a period of six months from the date of publication or notification. However,
- Where an import, export, or prior authorization document relating to the products concerned must be submitted to customs during customs procedures, the validity period of that document shall apply. The President is authorized to introduce exceptions to the provisions of this paragraph.
8. The provisions of paragraph 7 concerning Binding Tariff Information or Binding Origin Information may be used only for the following purposes.
a) Determination of import or export duties,
b) Calculation of export refunds under agricultural policy and all other payments granted in connection with imports or exports,
c) Use of an import, export, or prior authorization document issued during customs procedures for the registration of the customs declaration relating to the goods, provided that such documents were issued on the basis of the relevant tariff or origin information.
What Is Binding Tariff Information (BTI)?
CUSTOMS REGULATION ARTICLE 28
(1) Binding Tariff Information is an administrative decision concerning the classification of goods in the Turkish Customs Tariff Schedule, issued upon the written request of a person by the Undersecretariat or by customs and enforcement regional directorates authorized by the Undersecretariat.
(2) An application for Binding Tariff Information shall be made using the Binding Tariff Information Application Form included in Annex 1. Binding Tariff Information applications must relate to only one item of goods. The term “one item of goods” means goods classified under the same tariff subheading in the Turkish Customs Tariff Schedule and subject to the same statutory or preferential duty rate.
(3) Applications for Binding Tariff Information must include the following information and documents:
- Name, surname, and address of the holder,
- If the applicant is not the holder, the name, surname, and address of the applicant,
- A detailed description enabling the goods to be correctly classified in the Turkish Customs Tariff Schedule,
- Where classification of the goods depends on their composition, the analytical methods that may be used to determine that composition,
- Samples, photographs, plans, sketches, or other available documents that may assist the customs administration in correctly determining the classification of the goods in the Turkish Customs Tariff Schedule (documents printed in a foreign language must be accompanied by translations certified by sworn translation offices),
- Information concerning any matters requested to be treated as confidential.
(4) If samples of goods submitted in connection with a Binding Tariff Information application are not collected by the holder or their representative within one month from the date on which the Binding Tariff Information is notified to the interested party, they shall be disposed of or otherwise handled by the Undersecretariat.
(5) The application must contain all information and documents required for the issuance of Binding Tariff Information.
(6) As a general rule, Binding Tariff Information shall be communicated to the applicant in writing as soon as possible.
Where it is not possible to notify the applicant of the Binding Tariff Information within three months after receipt of the application, the customs administration shall, before expiry of that period, explain the reason for the delay and specify any additional period it considers necessary for issuing the information.
(7) Binding Tariff Information shall be notified to the applicant using a form conforming to the specimen included in Annex 2. The notification shall specify the matters deemed confidential and state that an objection may be filed against the Binding Tariff Information in accordance with Article 242 of the Law.
(8) Binding Tariff Information shall be monitored by recording it in the Binding Tariff Information Program.
(9) During customs clearance, the customs administration may require the holder of Binding Tariff Information to declare the Binding Tariff Information in their possession.
(10) Where Binding Tariff Information is revoked pursuant to the fourth paragraph of Article 9 of the Law, the revocation shall take effect from the date on which the revocation decision is issued; where it is revoked pursuant to subparagraph (c) of the fifth paragraph of Article 9 of the Law, the revocation or amendment shall take effect from the date on which the relevant person is notified of the decision.
According to the GENERAL CUSTOMS COMMUNIQUÉ (TARIFF) (SERIES NO: 14);
Authority
ARTICLE 4
- Binding Tariff Information (BTI) is an administrative decision concerning the classification of goods in the Customs Tariff Schedule, issued upon the written or electronic request of a person by the Ministry (General Directorate of Customs) or by Customs and Trade Regional Directorates authorized by the Ministry.
- BTI is issued by the Istanbul, Aegean, Central Anatolia, Central Mediterranean, Eastern Marmara, and Uludağ Customs and Trade Regional Directorates.
Fees
ARTICLE 5
- BTI is issued free of charge to the applicant. However, expenses incurred by customs administrations, particularly in connection with chemical analysis, expert examination, or the return of goods to the applicant, shall be borne by the applicant.
- Where physical or chemical analysis is required to determine the tariff classification of goods subject to a BTI application, such analysis shall be carried out in customs laboratories where technically possible. Otherwise, depending on the nature of the goods, the analysis shall be carried out at a university or another official institution laboratory designated by the customs administration in accordance with Article 201 of the Customs Regulation.
Purpose of the Application
ARTICLE 6
(1) The objectives of the BTI system are as follows:
a) To harmonize tariff classification through the correct and uniform application of classification rules and thereby ensure that the foreign trade regime is applied correctly and equally among participants in foreign trade,
b) To accelerate the declaration process and customs procedures, thereby facilitating customs control and international trade as much as possible and reducing the cost of foreign trade transactions,
c) To reduce disputes between traders and the customs administration arising from the tariff classification of goods,
ç) To reduce time losses caused by problems relating to the classification of goods during customs procedures, thereby allowing sufficient time for the inspection and control of high-risk goods and enabling customs controls to be carried out more selectively and effectively,
d) To provide foreign trade operators with legally valid official information concerning the classification of goods in the Customs Tariff Schedule,
e) To enable the profitability and feasibility of an international trade transaction to be assessed in advance.
Place and Method of Application
ARTICLE 7
- A BTI application shall be submitted electronically by entering data into the BTI Program or in writing to an authorized Customs and Trade Regional Directorate using a form conforming to the application form specimen included in Annex 1 of the Customs Regulation. A computer printout generated after data has been entered into the BTI Program may also be used as the application form. Where a BTI application is submitted in writing using the form, all accompanying documents and photographs taken from different angles that enable identification of the goods must also be submitted to the relevant regional directorate in digital format together with the paper copies.
- A person may submit only one BTI application for the same goods. If it is determined that a new BTI has been issued for the same goods while a valid BTI already exists in the name of that person, all BTIs issued in that person’s name for the same goods shall be deemed invalid from their respective dates of issuance. For the holder of a BTI rendered invalid in this manner, the first paragraph of Article 241 of Customs Law No. 4458 shall apply.
Goods for Which an Application Cannot Be Made
ARTICLE 8
- A BTI application cannot be submitted for goods listed in chapters 27 (excluding 27.01 to 27.05, 2709.00.90 and 27.16), 28, and 29 of the Turkish Customs Tariff Schedule referred to in subparagraph (a) of the first paragraph of Article 196 of the Customs Regulation, or for goods under tariff headings 32.08, 34.03, and 38.11 and tariff headings from 39.01 through 39.15 inclusive, where such goods are imported in bulk and are not presented in packaging prepared for retail sale. If it is subsequently determined that the goods fall within this scope, the application shall be rejected.
- Applications concerning goods that do not bear information on the goods themselves or their packaging sufficient to establish their identity may be rejected where physical identification is also not possible.
- As a general rule, a BTI application should be submitted for goods that are eligible to be the subject of Binding Tariff Information.
What Are the Advantages of Binding Tariff Information (BTI)?
- Prevents tariff classification disputes
- Provides legal certainty before importation
- Prevents inconsistent practices at different customs offices for the same goods
- Enables the profitability and feasibility of an international trade transaction to be assessed in advance
- Reduces time losses caused by tariff classification issues during customs procedures.
What Is Binding Origin Information (BOI)?
CUSTOMS REGULATION ARTICLE 29
(1) Binding Origin Information is an administrative decision issued upon the written request of a person by the Undersecretariat (General Directorate of Customs) concerning the determination of the preferential or non-preferential origin of goods.
(2) Binding Origin Information shall be notified to the applicant using a form conforming to the specimen included in Annex 3. The notification shall specify the matters deemed confidential and state that an objection may be filed against the Binding Origin Information in accordance with Article 242 of the Law.
(3) Applications for Binding Origin Information must relate to only one item of goods. The term “one item of goods” means goods classified under the same tariff subheading in the Turkish Customs Tariff Schedule and subject to the same statutory or preferential duty rate.
(4) Applications for Binding Origin Information must include the following information and documents:
- Name, surname, and address of the holder,
- If the applicant is not the holder, the name, surname, and address of the applicant,
- The legislation forming the basis for determining origin,
- The tariff classification of the goods,
- A detailed description of the goods,
- The composition of the goods, the method to be used to determine that composition, and, where necessary, ex-works prices,
- Detailed information demonstrating that the conditions required for the goods to acquire origin have been fulfilled and enabling the origin of the goods to be determined; materials used in the production of the goods and their origin, tariff classifications, values, and other relevant factors (conditions required for a change in tariff classification, value added, detailed description of the production process), and the applicable rule of origin,
- The country in which the goods underwent processing or working and the type of processing or working performed,
- Information concerning any matters requested to be treated as confidential.
- Samples, photographs, catalogues, plans, and other documents relating to the goods and other materials incorporated into the goods during production for the purpose of describing the manufacturing process.
(5) The application must contain all information and documents required for the issuance of Binding Origin Information. Otherwise, the applicant shall be requested to provide the missing information and documents.
(6) Binding Origin Information must be notified to the applicant within five months from the date on which all documents required by the administration to make its decision have been provided.
(7) In issuing Binding Origin Information, the provisions concerning determination of the origin of goods set out in Articles 17 to 22 of the Law and Articles 33 to 45 of this Regulation shall apply.
(8) Where Binding Origin Information is revoked pursuant to the fourth paragraph of Article 9 of the Law, the revocation shall take effect from the date on which the revocation decision is issued.
What Are the Advantages of Binding Origin Information (BOI)?
- Speeds up customs procedures
- Facilitates customs control procedures and provides greater predictability in foreign trade.
- Because the origin of the goods is determined in advance, it enables businesses to optimize costs by benefiting from preferential tariff treatment or customs duty advantages.
- Helps prevent potential customs penalties, disputes, and tax losses arising from incorrect declarations of origin.
Why Is the Origin of Goods Important?
The origin of goods directly affects the following trade measures.
- Additional customs duties
- Anti-dumping measures
- Quotas
- Import surveillance measures
- Free Trade Agreements
Key Issues Examined in Binding Origin Information (BOI)
With respect to the goods;
- Whether they have undergone substantial processing or working
- The last substantial processing or working
- Sufficient processing or working
- Insufficient processing or working
- Change in tariff classification
- Regional value content
What Are the Legal Consequences?
BTI and BOI;
Are binding on the customs administration. However;
If the applicant;
- Makes an incorrect declaration
- Uses different goods
- Provides incomplete information
The binding information does not provide legal protection and shall not be valid.
ANNEX:1 – Binding Tariff Information Application Form
ANNEX:2 – Binding Tariff Information
ANNEX:3 – Binding Origin Information
References;
- Customs Law No. 4458, Article 8
- Customs Regulation, Articles 28 and 29
- General Customs Communiqué (TARIFF), SERIES NO: 14
