Binding Tariff Information (BTI) SERBIA screening of the acquis Chapter 29 Customs Union Brussels, 26 March 2014 Neither the European Commission nor any person acting on behalf of the Commission is responsible for the use which might be made of the following information. The information reflects the situation at the time of the explanatory screening meeting. A great deal of additional information on the European Union is available on the Internet. It can be accessed through the Europa portal (http://europa.eu/)
Binding Tariff Information (BTI) 1. Basic principles 2. Some further clarifications 3. Key figures 4. Legislative changes 5. The future 2
1. Basic principles (1) BTI is a decision on the tariff classification of goods issued by the customs of a Member State binding on the customs of all Member States generally valid for 6 years, unless it ceases to be valid earlier 3
1. Basic principles (2) Legal basis Articles 5, 6 to 10 Customs Code Reg. No 2913/92 (general provisions on customs decisions) Articles 11 and 12 Customs Code (specific provisions about information) Articles 5 to 14 Customs Code Implementing Provisions Reg. No 2454/93 (binding information) 4
1. Basic principles (3) Purpose uniform tariff classification legal certainty for traders as regards tariff classification of their goods tariff treatment of their goods equal treatment for their goods throughout the EU trade facilitation 5
1. Basic principles (4) Actors applicant holder representative competent customs authority Commission 6
1. Basic principles (5) Role of the Customs authorities in Member States list of competent authorities for BTI http://eurlex.europa.eu/lexuriserv/lexuriserv.do?uri=oj:c:20 13:246:0010:0014:EN:PDF tariff classification (including BTI) is part of the operational tasks carried out by the Member States 7
1. Basic principles (6) Role of the Commission managing EBTI-3 system internal version (for Customs authorities in Member States) public version (non-confidential information only) monitoring correct implementation monitoring visits to Member States (2007-2010; follow-up) monitoring of the database 8
2. Some further clarifications (1) it is not obligatory to have a BTI (but having no BTI implies having no legal certainty on tariff classification) a BTI does not grant immunity from customs controls (the goods declared must correspond in every respect to the goods described in the BTI) the BTI cannot be invoked by anyone other than the holder 9
2. Some further clarifications (2) a BTI can only be used for the specific goods described therein a trader cannot have more than one BTI for identical goods ( BTI shopping ) a BTI cannot be used for trade between Member States (intra-eu trade) 10
3. Key figures (1) total number of BTI issued per year total number of BTI issued per Member State (top 10) total number of valid BTI number of BTI issued per chapter of the CN (top 14) 11
3. Key figures (2) Total number of BTI issued per year 60.000 50.000 40.000 30.000 44.062 47.036 48.038 51.395 20.000 10.000 0 2008 2009 2010 2011 12
3. Key figures (3) Total number of BTI issued in the top 10 Member States accounting to more than 90% of the total number of BTI 25.000 20.000 15.000 10.000 5.000 0 DE FR GB NL 2008 2009 2010 2011 PL IE SE AT CZ FI 2008 2010 13
3. Key figures (4) Total number of valid BTI at the end of each year 250.000 200.000 235.735 150.000 100.000 168.045 187.433 209.483 50.000 0 31/12/2008 31/12/2009 31/12/2010 31/12/2011 14
3. Key figures (5) Number of BTI issued in the top 14 chapters of the CN (Representing approximately 70% of the total number of BTI) 12.000 10.000 8.000 6.000 4.000 2.000 2008 2009 2010 2011 0 CN chapters 85 64 84 39 95 90 94 61 21 73 42 63 62 19 2008 2011 15
4. Legislative changes (1) Union Customs Code (UCC) Regulation (EU) No 952/2013 of the European Parliament and of the Council of 9 October 2013 http://eurlex.europa.eu/lexuriserv/lexuriserv.do?uri=oj:l:2013:269:0001:010 1:EN:PDF Application (legislation under preparation): for most provisions: 1 May 2016 transitional period for IT-systems: until 31 December 2020 16
4. Legislative changes (2) Articles 6 and 16 (electronic data-processing techniques and electronic systems) Articles 22 to 28 (decisions) Articles 33 to 37 (binding information) Articles 56 to 58 (common customs tariff and tariff classification of goods) 17
4. Legislative changes (3) BTI will be binding upon the holder as against customs control on the usage of BTI link with other IT-systems (EORI) normal validity will be 3 years instead of 6 years introduction of electronic applications and decisions 18
4. Legislative changes (4) stricter management of BTI with extended use ( period of grace ) central monitoring of BTI usage (through surveillance system covering all customs declarations) possibility to adopt urgency measures to rapidly ensure correct and uniform classification 19
5. The future of BTI (1) Evaluation of the current BTI system ECA special report No 2/2008 (OJ C103/2008) http://eurlex.europa.eu/lexuriserv/lexuriserv.do?uri=oj:c:20 08:103:0001:0017:EN:PDF EBTI monitoring visits + follow-up studies on the evaluation of the customs union 20
5. The future of BTI (2) Main problems identified time taken to resolve difficult classification cases substantial risks for all stakeholders because of inconsistent tariff classification 21
5. The future of BTI (3) What can we do? enhance efficiency of current procedure adopt urgency measures as an "interim" solution more radical overhaul of the system a central body in charge of issuing all BTI COM managing issuing of BTI by Member States creation of an EU team to deal with difficult cases other??? 22
For further information: http://ec.europa.eu/taxation_customs/customs/customs_du ties/tariff_aspects/classification_goods/index_en.htm Thank you! 23