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Binding Tariff Information (BTI) is a decision issued by customs authorities that provides businesses with the classification of goods under the applicable customs tariff, ensuring consistency and predictability in customs procedures.
A BTI is an official determination from customs authorities regarding the tariff classification of specific goods, offering certainty to businesses about their duty rates and regulatory requirements. Once issued, the BTI is legally binding for both the importer and customs, meaning it can be used to guarantee that goods will be classified the same way in future shipments. This can help businesses avoid unexpected costs and delays during customs clearance.
A BTI works by providing a formal, binding decision from customs authorities regarding the classification of your goods, ensuring you know exactly which tariff code applies. This decision can be used for future shipments, creating a predictable and stable framework for international trade.
By having a BTI, your business can streamline customs clearance, avoid costly tariff misclassifications, and reduce the risk of customs audits, improving efficiency and cost-effectiveness.
Buske Logistics is a Top 40 3PL with over 35 warehouses across North America, specializing in warehousing, transportation, and value-added services. We provide tailored logistics solutions serving major Fortune 500 companies.
Binding Tariff Information provides businesses with clear, reliable guidance on how their goods will be classified, which helps prevent classification disputes and ensures compliance with customs regulations. By receiving a BTI, businesses can accurately calculate duties, taxes, and other fees associated with imports or exports, enabling better financial planning.
For example, if a business imports a specific electronic component, obtaining a BTI ensures that the product will be consistently classified under the correct tariff code, saving the company from potential overpayment or underpayment of duties. This not only reduces the risk of fines but also simplifies customs procedures and improves operational efficiency.
