European Binding Tariff Information (EBTI)

Transcription

1 Vanessa Schönherr Neukirchen-Vluyn, July 15, 2014 European Binding Tariff Information (EBTI) Prof. Dr. L. Gellert Vanessa Schönherr

2 Table of Contents 1 Introduction Definition Costs Validity Current Future Impact on third countries Benefits Restrictions Current Future Procedure of issuance Method Where to request Course of events Appeal Insight Statistics Current procedure of issuance: Disadvantages BTI shopping Discrepancy Possible improvements Field of expertise Responsibility of the European Commission Other responsibilities Conclusion List of abbreviations Bibliography Appendix... 20

3 - 1-1 Introduction In this thesis, I will present to you the European Binding Tariff Information (EBTI). Herein, I will explain what a Binding Tariff Information (BTI) is, list a few of its benefits and restrictions, show the procedure of issuance and consider a couple of possible improvements of the current procedure. To better portray similarities and differences in the realisation of the European Law concerning BTI between Member States, consultations with competent officials of the United Kingdom, Malta, Denmark and Germany have been held. 1 Because of the upcoming modernisation of the Community Customs Code (CCC) from 1992 in form of the Union Customs Code (UCC), coming fully into effect in 2016, I will also cite some of the major changes that are about to eventuate concerning the BTI. Since the implementing provision for the UCC has not been finished and published in the Official Journal of the European Union by the time this thesis is completed, there might be more requirements concerning BTI changing that, for obvious reasons, could not be addressed in here. At the end, I will give a concluding description of BTI and summarise advantages and disadvantages in applying for one. 2 Definition The system of (European) Binding Tariff Information is described by the European Commission as a tool to assist economic operators to obtain the correct tariff classification for goods they intend to import or export 2. A BTI issued since 01. January 1991 by a customs authority of one Member State is according to CCC-IP, Art 11 legally binding for all customs authorities in every Member State of the European Union. Yet the issuance of a BTI is not a legal requirement but an offer 3 for economic operators, and as such a decision favourable to a person. The term economic operator includes everyone 4, not only companies. 1 See especially: Appendix Nos classification _goods/index_en.htm ( ). 3 On this, see also: 5 Benefits. 4 On this, see also: 7.1 Method.

4 - 2 - The term (tariff) classification means the identification and following allocation of a nomenclature code (in terms of CCC, Art 20(6)) within the Common Customs Tariff (CCT) for a good that is imported into or exported from the European Union. 5 The goods can be classified within a code of up to eleven digits. The Harmonised System (HS) determines the first six digits of the nomenclature code. It is administrated by the WCO and supplies with a globally uniform classification through its describing character. The extension of the HS by two digits is called the Combined Nomenclature (CN). The CN provides a basis among other things for duties, restrictions and bans. The Integrated Tariff of the European Communities (TARIC) contains antidumping rules, tariff rates and duty suspensions within the ninth and tenth digits. The last digit is a digit for national purposes such as e.g. national restrictions, bans or duties. 6 As you can see, this classification of goods is necessary since all measures such as the height and recovery of import duty and other taxes or the necessity and possibly submission of licences and other documents being conducted are dependant on the right classification. However, the specific designation of those measures is not part of a BTI, solely the information on the code of classification of the goods in the customs nomenclature is (compare CCC- IP, Art 7(2) and Annex 1). At the moment, general provisions concerning the EBTI may be found in CCC, Arts 6 to 11. Specific provisions are set out in CCC, Art 12. Further clarification of these regularisations is appropriated within the provisions for the implementation of Council Regulation (EEC) No.2913/92 establishing the Community Customs Code (CCC-IP), Arts 5 to 14. The applicant is the person applying for a BTI, the holder the one the BTI has been issued for and in whose name it will be utilised. Since mostly, the applicant and the holder of a BTI are one and the same person, the term will be used interchangeably within this thesis. 5 Cf. also: WebApp.portal?_nfpb=true&_pageLabel=pageImport_ShowContent&id=HM CE_PROD_010642&propertyType=document ( ). 6 Transl.: ( ).

5 - 3-3 Costs In general, the BTI shall be supplied free of charge. Exceptions, where the relevant amount may be charged, are made according to CCC, Art 11(2) if special costs are incurred, e.g. due to analyses, expert reports on goods or the return of said goods to the applicant. 4 Validity 4.1 Current With the application of the CCC, an issued BTI is currently valid for six years (Art 12(4)), beginning with the day of issuance. Therefore, you can not use it retroactively, CCC, Art 12(2). As a decision favourable to the economic operator, the BTI is to be annulled and thus unusable according to CCC, Art 8(1) in case said decision is found to have been issued on basis of incorrect or incomplete information. Furthermore, the applicant has to or reasonable should have known of its faultiness or incompleteness and the information would normally not have been given had these facts been known beforehand. The economic operator has to be notified about the annulment according to CCC, Art 8(2) and takes effect from the date on which the decision of annulment has been taken, Art 8(3). The BTI may also become unusable by ceasing its validity as per CCC, Art. 12(5) (a) through: (i) the adoption of a regulation whereby subsequently the information no longer conforms to the law; (ii) the incompatibility of the information given within the BTI with the interpretation of one of the in CCC, Art 20(6) listed nomenclatures o either at Community level based on changes concerning the explanatory notes to the combined nomenclature or by a assessment of the Court of Justice of the European Communities o or at international level due to a classification opinion or a change within the explanatory notes to the Nomenclature of the Harmonized Commodity Description and Coding System, adopted by the World Customs Organisation estab-

6 - 4 - lished in 1952 under the name the Customs Cooperation Council ; (iii) the revocation or amendment of the BTI in line with CCC, Art 9 on condition that the holder has been informed beforehand. The BTI ceases its validity at the date of publication of the measures cited in (i) and (ii) or, in case of international measures, the date the European Commission informs about it in the Official Journal of the European Union. Should a BTI be invalidated according to CCC, Art 12(5) (a) (ii) or (iii), a so-called period of grace of up to six months from the day of notification becomes applicable as per CCC, Art 12(6), i. e. the BTI may still be used for another six months. For an utilisation of the period of grace, the binding contract for purchase or sale of the goods in question must have been concluded before the BTI became invalid. Such a period of grace may be determined within the regulation mentioned in (i) for cases of CCC, Art 12(5) (a) (i) according to Art 12(6) as well. If the holder of a formerly established BTI wants to utilise said BTI after it naturally became invalid after six years, he has to apply for this BTI again the way he did apply for the BTI before, though now he can mention that he is applying for the reissue of a BTI in Box No. 4 within the form Annex 1b. 7 The ensuing BTI must not be issued before the established BTI becomes invalid. 4.2 Future With the future application of the UCC, an issued BTI will be valid for three years only (Art 33(3)). Hereby, the European Commission wants to diminish non-active records. This change is mostly due to the fast pace of today s economy and the ephemerality of goods. Especially technology and fashion are out of date after a few years, if not months. It, too, will not be usable retroactively (UCC, Art 33(2)). How the BTI will cease its validity according to UCC, Art 34(1), (7) in the future is mainly inherited from CCC, Art 12(5) and (6). As opposed to CCC, Art 12(5) (a) (iii), a BTI based on faulty information (as clarified in Art 27) will be annulled pursuant to UCC, 7 On this, see also: 7.1 Method.

7 - 5 - Art 34(4), not revoked though. A BTI where one or more conditions for issuing it were not or are no longer fulfilled, on the other hand, will be revoked according to Art 34(5). Additionally, the European Commission might instruct the responsible authorities of Member States to revoke a BTI pursuant to UCC, Art 34(11). As with the current issued but invalid BTI, a period of grace of up to six months may be granted for economic operators in the case Art 34(1) (b), (2), (7) or (8) apply according to UCC, Art 34(9). Therefore, if the holder wants to make use of the period of grace he as to lodge an application within 30 days. UCC, Art 34(6) prohibits the amendment of BTI. 4.3 Impact on third countries A BTI is currently only significant and binding within the European Union. Nevertheless, some third countries (meaning nonmember countries) accept the EBTI as trendsetting. 8 5 Benefits As previously insinuated with the BTI being an offer for economic operators in 2 Definition, the BTI affords quite some perks for the holder and is at the moment mostly obtained because of those. 9 In the following, these benefits will be shown. For one thing, a BTI provides the applicant with legal certainty in regard to the tariff classification. With this information, economic operators may be able to calculate prospective costs in advance, especially since they will be informed if any changes concerning the classification of goods should occur which might affect the BTI. Furthermore, this certainty is uniformly obtained in every Member State throughout the EU, regardless of the Member State they operate from, and facilitates thereby trade with the EU in general. Moreover, it provides a swift clearance of to-be-imported or exported goods, especially since possibly necessary documents may already be obtained in advance. 8 Transl., cf. Zolltarifauskunft/Sinn-und-Zweck/verbindlich.html?nn= ( ). 9 tion.html ( ).

8 - 6 - The in 4.1 Current and 4.2 Future already addressed period of grace of up to six months represents a benefit as well, for it grants the economic operator to complete contracts according to the stipulation concluded and based on the validity of the BTI. Already paid-for revenues might be refunded or abated pursuant to CCC, Art 236(1). There is a disagreement whether this application of the law represents a duty legally not owed or an entry in the accounts contrary to CCC, Art 220(2). One opinion states that the duty is legally not owed because the BTI is considered to be valid within the period of grace and therefore can and will be utilised further on. Since it is only considered to be valid however as it is not really valid, the prevailing opinion supports the assumption that the duty has been entered in the accounts contrary to CCC, Art 220(2) in association with Art 217(1) (b). 6 Restrictions 6.1 Current The CCC determines that BTI is only binding for the customs authorities. 10 The holder of an issued BTI is not obliged to apply said BTI yet; he has to inform about the presence of an issued BTI on demand though. A BTI is only valid for one specific kind of good that might later even have to be verified upon import (CCC, Art 12(3)). That implies that every kind of merchandise needs an individual BTI. Furthermore, it may only be used by the applicant as the holder or an agent acting in the name and on behalf of the applicant (only direct representation, CCC, Art 5(2)) Future With the UCC, BTI will not only be binding for customs authorities and Member States of the European Union but for holders as well. If they own an issued BTI, they are legally bound to not only mention this fact in their declaration but also to utilize the BTI. 12 If the holder does not abide to this law, he will be guilty of the offence of tax evasion due to this change. Up until now, it has been 10 CCC, Art 12(2) /ebti/ebti_general_information_en.pdf ( ), No UCC, Art 33(2) (b).

9 - 7 - controversial whether or not an attempted tax evasion has been committed if they did not mention their issued BTI since there has been no obligation for the holder to use or even mention said BTI without demand. A BTI may still only be used by the applicant as the holder or an agent acting in the name and on behalf of the applicant (only direct representation in terms of UCC, Art 18 (1)). It will only be valid for one specific kind of good and might have to be verified through evidence upon import according to UCC, Art 33(4). 7 Procedure of issuance Within the segment Procedure of issuance, not only the questions of how and where to apply for a BTI and details of them will be elucidated, but also where issued BTI may be inspected and some statistics will be shown. Since the current procedure of issuance possesses some disadvantages as well, a few suggestions for improvements will be proposed at the end of this segment. 7.1 Method The issuance of a BTI requires an application and is therefore only given on request. The same will apply for the issue of BTI with the commencement of the UCC. Said information can be requested by any person according to CCC, Art 11(1); the request may only be refused when there is no import or export actually envisaged. The form of the application is standardised within the EU, currently regulated in CCC-IP, Annex 1b and shall include the details listed below, specified in CCC-IP, Art 6(3) (A). The holder s or respectively, if holder and applicant differ, the applicant s name and address as well as a detailed description of the good can be considered as the most important details. If applicable brochures and photos can be attached and samples or patterns in an adequate amount enclosed. Currently, samples and patterns are mostly required to be sent to the notifying authority with the application directly. Exceptions thereof are made for perishables and hazardous materials. In Germany, products of unmanufactured tobacco are exempted from it as well. In future, there still won t be an obligation to send samples or pat-

10 - 8 - terns; the possible addition of those shall be announced beforehand within the electronic application though. Where required, translation of enclosed data into the official language of the notifying or of other Member States has to be submitted on request. In general, organisations shall mention their Economic Operator Registration and Identification (EORI) number. Individual persons oftentimes do not own an EORI number. As they are allowed to apply for BTI, too, they may apply without an EORI number; obtaining one is recommended though. 13 Even now, there are differences in which manner forms are requested. While Germany still operates with applications and issues on paper, the United Kingdom only accepts electronic applications since 1 April Yet the UK, too, is currently only able to issue BTI on paper. Malta, on the other hand, accepts electronic applications as well as applications on paper. Prospectively, both the application and the issue of the BTI have to be fulfilled electronically according to UCC, Art 6(1). Exceptions of this regulation though are laid down in UCC, Art 6(3) (b), if there are e.g. problems with the IT system like a technological failure on the part of either the customs authority or the economic operator. In Germany, existing export duties or refunds are essential for the issue of a BTI for goods that are to be exported. 7.2 Where to request CCC-IP, Art 6(5) sets out a self-governed distribution of the responsibility within the Member States. That means that every Member State has at least one issuing agency. Those agencies are listed in the Official Journal of the European Union C 176 of 11 June Responsible for the reception of applications and the issue of BTI in the United Kingdom is the HM Revenue and Customs ECMS in Essex. The Binding Tariff Information Unit in Valletta is Malta s one and only office responsible for the reception of applications for and issuance of BTI. 13 In Germany; cf. also: ZT (21) Changes.

11 - 9 - In Denmark, there, too, is also only one responsible authority, though this authority is divided into two locations (Copenhagen and Aarhus). Aarhus is responsible for applications from applicant from north-, middle- and south-jutland and the isle Funen. Copenhagen is responsible for all the other applications. In Germany, every customs office is authorised to forward applications to the responsible customs office, the Hauptzollamt Hannover 15 in Hanover. Only the Hauptzollamt Hannover is allowed to issue BTI, though they consult Bildungs- & Wissenschaftszentren (BWZ) 16. There are five BWZ currently being responsible, each allocated with a specific segment of the CCT, for administering advisory opinions. 17 Germany is, as far as the interviewed Member States can attend to it, the only issuing agency consulting with other, more specialised agencies for advisory opinions. 7.3 Course of events In the following, the general course of events will be delineated with the description of further minutiae according to German law, particularly within the meaning of the German service regulations ZT The responsible agency has to acknowledge the receipt of an application. This is regulated within national law (cf. ZT 04 15(7)). Upon receipt of the application, on the one hand, the application will be checked for wholeness and accuracy of the aforementioned details and, on the other hand, there will be an inquiry whether a BTI on the same goods has been requested or already issued in another Member State. If missing data is detected, the applicant shall be informed about the obstacle and the missing information shall be requested. According to ZT 04 15(14), the requested information has to be given within a period of two weeks. The request of a BTI will be denied if the requested information is not given. Further on, if either completeness or integrity leaves room for doubts additional analyses or inquiries might be conducted Transl.: Main Customs Office Hanover. 16 Transl.: Centres for Education & Science. 17 Cf. German service regulations ZT 04 15(1). 18 Transl., cf.: ( ).

12 If it is possible the issuing authority should take photos of samples and patterns that the European Commission can be provided with as well. If it is established that the applicant already requested a BTI and said BTI remains valid another one will not be issued and the request will be declined with reference to the right of appeal. 19 The other alternative is that a still valid BTI has already been issued for the same good but a different beneficiary. In that case, the applicant either receives a BTI with the same classification as the one already issued if the responsible authority shares the opinion on the classification or, if the opinion on the classification differs, the applicant does not receive a BTI for the time being. In that case, the Bundesministerum der Finanzen (BMF) 20 will be informed about the discrepancy and all given information and data as well as a suggestion for a classification will be forwarded to the BMF. 21 Has the information been provided and further checks of the application show evident completeness, integrity and that there has neither been a request nor an issue of a BTI for the same goods, the application may be allowed and the competent agency will notify a BTI on the basis of the supplied data, including given advisory opinions. Within the BTI, the right to appeal given under CCC, Art 243 has to be referred to. The period of time to announce the allowance of an application is currently regulated within national regulations and amounts to e.g. ten days in Denmark. Prospectively, this period of time will be uniformly governed by European law according to UCC, Art 22(2) and amounts to a maximum of thirty days. According to CCC-IP, Art 7(1), the notification has to happen as soon as possible; at the latest within three months. If that is not possible, the responsible authority shall contact the applicant, explain the reason for the delay and indicate the expected date for the notification. The same provision holds true for the UCC, where the notification has to be given within a period of 120 days according to Art 22(3); however, this period may principally be prolonged for only another 30 days. 19 Cf. ZT (8) (a). 20 Transl.: The German Federal Ministry of Finance. 21 Cf. ZT (8) (b).

13 Appeal The European Commission is only allowed to adopt guidelines which aim to explain and which are therefore no binding legal act in terms of the Treaty on the Function of the European Union (TFEU), Art That implies that the Commission cannot adopt legal acts attending to appeals and their procedure. Furthermore, the regulation of appeals is often embedded in the whole field of national administrative and tax law and differs partially considerably among Member States thus splitting heretofore consistent national law. 23 The applicant has the right to appeal in the Member State where he applied for a BTI if he disagrees with the classification he has been given according to CCC-IP, Art 7(2) and CCC, Art 243(1). The provisions of the implementation of the appeals procedure, e.g. regarding within which period the applicant has to appeal, are to be determined within the Member States according to CCC, Art 245. In Germany for example, the appeal is to be lodged at the issuing authority and will be reviewed by said authority. 24 The period amounts to one month according to the Abgabenordnung (AO), 355. In the United Kingdom, there are three options. 25 One of those options is the appeal, but more on that later. Firstly, the applicant may send more or new information and arguments as to why they are of the opinion that a different classification would be the right course of action to the responsible officer. Secondly, they may request a review of the decision by a third person within 30 days after the notification and in writing, with naming the reason of their discord with the given classification. Finally, the economic operator may as well appeal directly to the Value Added Tax (VAT) and Duties Tribunal 26, an independent authority responsible for appeals. It should be noted that choosing one of the first two options as the First-tier according to CCC, Art 243(2) (a) 22 Cf. TAXUD 1406/2006, No Lyons, EC Customs Law, p kunft/erteilung/rechtsbehelf.html?nn= ( ) portal?_nfpb=true&_pagelabel=pageimport_showcontent&id=hmce_mig_ &propertyType=document ( ). 26 Cf. Finance Act 1994, section 7(3).

14 does not diminish the applicant s right of appeal as the Second-tier in terms of CCC, Art 243(2) (b). 27 Soon, the right of appeal will be determined by UCC, Art 44. Alongside the analogously still consistent provisions of appeal, the Member States shall now uniformly ensure that the appeals procedure facilitates an immediate confirmation or correction of the BTI according to UCC, Art 44(4). Ultimately, the handling of appeals is and still will be a national matter. 7.5 Insight All BTI are transmitted to and stored at the European Binding Tariff Information Database (EBTI database). This database is owned by the European Commission and made public through the internet, where it is called EBTI-dds. Except for information marked as confidential (CCC-IP, Art 6(3) (k)), everyone can look at already issued BTI. Germany operates with a data system called Zoll-Einreihungs- Unterstützungs-System 28 (ZEUS) that is only accessible within the German customs intranet and with identification and password. The United Kingdom employs two data systems: Customs Handling of Imports and Exports Freight (CHIEF), the main data handling system, and Binding European Retrieval of Tariff Information (BERTI), the data handling system for BTI. Thus, they do not feed BTI directly into but download the data twice a day to the EBTI database. For the United Kingdom, the EBTI database is only used to scan the data of European records. A BTI has to be stored for as long as it is valid (currently 6 years, soon 3 years) and for another three years after that to ensure potential custom-house examinations according to CCC, Art 16 respectively UCC; Art 51(1). 7.6 Statistics The latest query 29 within the EBTI-dds, dated from January 2, 2014, showed the following results: 27 Cf. also: Finance Act 1994, sections 14, 15 (First-tier) and 16 (Second-tier). 28 Transl.: Customs Classification Support System. 29 Cf. Appendix No. 1.

15 In 2013, the 28 Member States of the EU issued altogether 48,126 valid BTI, though even more were applied for and issued but became invalid. Of the 48,126 valid BTI 44.6% (21,483 BTI) were issued by Germany alone. Germany, France (7,477 BTI, 15.5%), the United Kingdom (6,903 BTI, 14.3%) and the Netherlands (2,701 BTI, 5.6%) are the leading authorities concerning the issue of BTI and represent with 38,564 issued BTI 80% of the overall performance. Estonia (8 BTI) and Luxembourg (5 BTI) issue the fewest BTI of all Member States. That might correlate with the size and location of both countries. Yet Malta, as the smallest Member State of the European Union, issued 83 BTI in Furthermore, many not-binding classification opinions are given via telephone or mail since many traders in Malta do not want to wait for up to six month for a BTI but would rather like a classification upon import. 30 The most often applied-for sections of the Tariff in Germany have been the sections XI (textiles and textile articles), XII (i. a. footwear), XV (base metals and articles of base metal), XVI (i. a. machinery and mechanical appliances) and XX (miscellaneous manufactured articles) and constitute with 14,155 BTI 65.9% of the German issues. Over the last three years, there has been a downward tendency of issued BTI: From approx. 51,000 in 2011 to almost 49,000 in 2012 to about 48,000 issued BTI in This trend could obviously not be influenced by the accession of Croatia in July 2013 to the European Union. Croatia even issued 35 BTI between the onset of July and the end of December. 7.7 Current procedure of issuance: Disadvantages Below, disadvantages of the current procedure of issuance will be shown by means of two examples: At first, BTI shopping and secondly, the discrepancy of Member States BTI shopping One of the biggest disadvantages is the so-called BTI shopping. 31 That means that economic operators try to apply for BTI in different Member States to choose the BTI where they gain the most 30 Cf. Appendix No Cf. also: European Commission, Report of the first phase [ ], p. 37.

16 profit with through the classification. It should even now be prohibited by immediately registering every application within the EBTIdatabase for other Member States to see, yet reports 32 show gaps within the execution. A loss of financial significance in form of revenues is thereby nearly guaranteed. 33 So is the exploitation of the costless offer the BTI represents Discrepancy Another problem is the discrepancy between Member States. Since the interpretation of the nomenclature is exactly that: an interpretation; there might be different opinions on how to classify a good. In the case of e.g. two issued BTI containing different opinions on the same good, it has to be placed on the agenda of the Committee of the Commission to be determined and to take precautions for a uniformly applied Customs Law within the European Union according to CCC-IP, Art 9(1). This takes time and poses a disadvantage for the economic operators that want to use their issued BTI for imports. Furthermore, revenues might be lost because of the delay of economic activity and the application of too low duty rates. 7.8 Possible improvements As seen above, these disadvantages, especially the BTI shopping, may lead to quite a few problems, among others the loss of revenues. Yet there might be ways of improvement, for example the redistribution of responsibilities. The UCC does not involve any changes concerning responsibilities yet, though word has it that the Commission is already looking into suggestions on how to change e.g. the division of competences. Below, you will see two suggestions for a solution of both aforementioned disadvantages: One is the segmentation of the Tariff and assignation of those segments as fields of expertise to an individual Member State. The other shows the complete redirection of responsibilities to the European Commission Field of expertise One possible improvement might be the segmentation of the CCT, that is to say that nearly every one of the twenty-one sections of the CCT will be allocated to one Member State. This Member State may then become an expert within his segmentation; therefore 32 European Commission, Report of the first phase [ ], p Fabio, Customs law of the European Union, p

17 vague opinions of classifications might lessen. Furthermore, BTI shopping will be restricted for an applicant can request a BTI for a certain good in only one Member State. A possibility of distributing the segments might be to hinge it on the number of issued BTI. Those Member States issuing most BTI shall be responsible for the segments of the CCT where most BTI are applied for It is said that a similar concept, possibly called Centre of excellence, is being considered by the European Commission at the moment. Hereby, only the five Member States issuing most BTI shall be the responsible authorities. What has to be kept in mind either way is the language barrier. Normally, a BTI has to be requested in the official language of the Member State where it is applied for. As not many people know to speak Maltese, for example, an application in Malta might be difficult. Since most people speak English nowadays, the general rule of applying in either the official language of the Member State or in English could be the solution of that problem Responsibility of the European Commission Hereby, the only responsible authority for issuing BTI will be the European Commission. The problem with that concept is that the European Commission is not allowed to enclose a right to appeal and therefore the applicant cannot make an appeal against the decision. 34 A slight variation and thus more appropriable alternative of this model poses the possible preset of a classification for an applied for good by the European Commission. The distribution of issues as per specification will then be carried out by the Member States. Thereby, discrepancies and BTI shopping would no longer be effective because there would be just one opinion on a classification. 8 Other responsibilities Besides manning the office of the responsible authority, the officers undertake other responsibilities, too. Maltese officers responsible for issuing BTI assist with questions from other departments, especially ones at the border, the Verification Unit and Post-Clearance Audits. They give advice on classifications to traders by phone as well. 34 Cf. 7.4 Appeal.

18 In the United Kingdom, five officers handle applications, samples and patterns as the administrative personal. There are twenty-five officers assigned to issue BTI. Three technical managers attend meetings; two of them attend meetings of the Customs Code Committee, the other one attends the HS, CN and WCO committees. The officers operate a helpline for traders and help out with intern questions. About as many internal enquiries that arise during custom-house examinations (pursuant to CCC, Art 16) as the United Kingdom issues BTI will be answered by these officers as well. In Denmark, three officers work in the BTI department located in Copenhagen and another three officers in the department located in Aarhus. The helpline for traders is manned by officers of a different department though the BTI department helps out with complicated questions as well as supporting colleagues in e.g. Post-Clearance Audit and physical inspections. They also attend meetings of the Customs Code Committee concerning classifications. 9 Conclusion As you see, the BTI is a quite complex but helpful tool for economic operators. By presetting a classification for goods that shall be imported, it shortens the time for traders as well as customs offices upon entry of said goods into the European Union. All of that just by presenting the holder with the possibility of making necessary arrangements beforehand and by diminishing the time for elaborate searches for a classification for the customs offices. It grants certainty and promotes economy. Disadvantages in the current procedure of issuance are about to be reduced. Only time will tell whether new disadvantages will emerge from the changes the UCC will bring. The new instating of a binding for holders as well might be seen as a drawback for traders, yet it is a necessary tool to ensure that the costless offer the BTI poses will not be exploited. And if traders disagree with the classification, they may always appeal against it. As far as one can tell from this point, the numbers of issued BTI might further decrease, yet BTI will probably still be requested and used for many more years because of its (economic) benefits.

19 List of abbreviations AO Art BERTI BMF (E)BTI BWZ Abgabenordnung [German Law: revenue code] Article Binding European Retrieval of Tariff Information [UK system for handling of BTI] Bundesministerium der Finanzen [German Federal Ministry of Finance] (European) Binding Tariff Information Bildungs- & Wissenschaftszentrum [Centre for Education & Science] CCC Council Regulation (EEC) No.2913/92 (of 12 October 1992) establishing the Community Customs Code CCC-IP CCT cf. CHIEF CN EORI number EU HS provisions for the implementation of Council Regulation (EEC) No.2913/92 establishing the Community Customs Code Common Customs Tariff confer Customs Handling of Imports and Exports Freight [UK system for handling of main data] Combined Nomenclature Economic Operator Registration and Identification number European Union Harmonised System i. e. id est [ = that is to say] p. page TARIC TFEU Transl. VAT WCO ZEUS TARif Intégré de la Communauté [French; Integrated Tariff of the European Communities] Treaty on the Function of the European Union translation Value Added Tax World Customs Organisation Zoll-Einreihungs-Unterstützungs-System [Customs Classification Support System]

20 Bibliography Literature European Commission Report of the first phase of the exercise to monitor the issuing of BTI and the application of the relevant Community legal provisions in the Member States 2007 and 2008, Brussels 2012 European Commission TAXUD 1406/2006, Brussels 2006 Fabio, Massimo Customs Law of the European Union, 2 nd edition, The Netherlands 2010 Lyons, Timothy Publications Office of the European Union EC Customs Law, 2 nd edition, Oxford 2010 Official Journal of the European Union C 176, Luxembourg 2014 Internet Bundesministerium der Finanzen (Federal Ministry of Finance, Germany) Bundestministerium der Finanzen Bundestministerium der Finanzen Bundestministerium der Finanzen European Commission Haben verbindliche Zolltarifauskünfte Bindungswirkung außerhalb der EU? < Zoelle/Zolltarif/verbindliche-Zolltarifauskunft /Sinn-und-Zweck/verbindlich.html?nn= > ( ) Kann ein Rechtsbehelf gegen eine vzta eingelegt werden? Sind Fristen einzuhalten? < Zolltarif/verbindliche-Zolltarifaukunft/ Erteilung/rechtsbehelf.html?nn=201854> ( ) Customs Tariff < nt-of-goods/import/duties-and-taxes/normalcustoms-clearance/customs-tariff/customstariff_node.html> ( ) Erteilung einer verbindlichen Zolltarifauskunft < if/verbindliche- Zolltarifauskunft/Erteilung/erteilung.html> ( ) European Binding Tariff Information (BTI) <

21 European Commission Government of the United Kingdom Government of the United Kingdom Customs Directorate, HMRC Revenue Commissioners /customs/customs_duties/tariff_aspects/ classification_goods/index_en.htm> ( ) Application for Binding Tariff Information (BTI) General Information < /resources/documents/common/databases/ebti/ebti_general_information_en.pdf> ( ) Introduction to the electronic Binding Tariff Information (ebti) < PortalWebApp/channelsPortalWebApp. portal?_nfpb =true &_pagelabel= pageimport_showcontent&id=hm CE_PROD_010642&propertyType=documen t> ( ) BTI review and appeals < PortalWebApp/channelsPortalWebApp.portal?_nfpb=true &_pagelabel=page Import_ShowContent&id=HMCE_MIG_ &propertyType=document> ( ) Change to the procedures for requesting Binding Tariff Information (BTI) rulings, Dec < 2013/cip13-87.pdf> ( ) Binding Tariff Information (BTI), Apr < businesses/importing/binding- tariff-information.html> ( )

22 Appendix 1. Anzahl gültiger verbindlicher Zolltarifauskünfte des Jahres Response from the United Kingdom 3. Response from Denmark 4. Response from Malta 35 Transl.: Number of valid Binding Tariff Information of the year 2013

23 Selbstständigkeitserklärung Ich erkläre hiermit, dass ich die vorliegende Arbeit selbstständig und ohne Benutzung anderer als der angegebenen Hilfsmittel angefertigt habe; die aus fremden Werken wörtlich und sinngemäß ü- bernommenen Gedanken sind unter Angabe der Quellen gekennzeichnet. Ort, Datum Unterschrift Statement of Authorship Herewith, I guarantee that the thesis on hand has been produced independently and without use of additional means other than those declared (and dictionaries); borrowed thoughts, literally and analogously taken from foreign writings, are marked by (and within) the declaration of their origin. Location, Date Signature