What is a Binding Tariff?

A Binding Tariff is an official classification ruling issued by a customs authority—most commonly used in the European Union (EU) and other regions—that provides legal certainty on the tariff code and duty rate applicable to a specific product upon importation.

Also referred to as a Binding Tariff Information (BTI) ruling in the EU, or a Binding Ruling in the U.S., this tool helps importers correctly classify goods under the Harmonized System (HS) or Harmonized Tariff Schedule (HTS), reducing the risk of penalties, overpayment, or delays during customs clearance.

Key Benefits of a Binding Tariff

• Legal certainty: Customs authorities are legally bound to honor the classification for the product for a set period (usually 3 years in the EU, rulings valid until revoked in the U.S.).
• Predictable duties and taxes: Avoids surprises in landed cost calculations and improves pricing accuracy.
• Faster customs clearance: Prevents disputes or reclassification issues at the time of entry.
• Audit protection: Serves as proof of due diligence in tariff classification.

Who Issues These Tariffs?

• European Union: Issued by the customs authorities of individual EU member states via the Binding Tariff Information (BTI) system
• United States: Issued by U.S. Customs and Border Protection (CBP) through the Customs Rulings Online Search System (CROSS)

Example in Practice

A company importing specialized auto parts to Germany submits a BTI request and receives a ruling assigning HS code 8708.10.00 with a 4.5% duty rate. As long as the product remains unchanged, the company can use that tariff code and rate for all imports of that part over the next 3 years—no surprises, no reclassification.