My BTI is withdrawn, what to do?

1. Reasons for withdrawing a BTI

Customs authorities may withdraw a BTI for various reasons. One common reason is when the BTI no longer conforms to the Combined Nomenclature (CN) or the Harmonized System (HS). This can occur due to changes in explanatory notes or updates in interpretation, necessitating a new classification of the product.

In such cases, Customs will inform the BTI holder of their intent to withdraw the BTI. The holder has the right to respond to this notification. After considering the response, Customs will finalize their decision and notify the holder whether the BTI will be formally withdrawn. If changes in the explanatory notes do not affect the classification, the BTI will remain valid.

A BTI may also be withdrawn if the classification is no longer consistent with judgments from the European Court of Justice. Additionally, decisions by the World Customs Organization (WCO) regarding classification can trigger a BTI withdrawal if the product’s classification is affected.

2. Consequences of withdrawal

Once a BTI is withdrawn, it can no longer be used as of the specified date. This can pose challenges for importers who have already entered contracts with suppliers based on the classification provided by the BTI. Without the certainty of the BTI, duties and costs may change, impacting pricing agreements with customers.

To mitigate this, importers can apply for a transitional measure, known as the extended use period. This allows the withdrawn BTI’s commodity code and applicable customs duties to be used for a limited time.

3. Applying for an extended use period

The extended use period begins on the date the BTI is officially withdrawn. It is critical to apply for this period as soon as you are informed of the withdrawal.

To qualify, an application must be submitted to Customs, including evidence of pre-existing contracts with suppliers based on the BTI. The application should also detail the quantity of goods to be released during the transition and identify the EU Member State where the goods will be declared.

The extended use period is capped at six months. In certain cases, such as when the withdrawal is due to a new classification regulation, a shorter period may apply.

4. Repayment of overpaid duties

Once the application for an extended use period is approved, Customs will issue a formal decision. During this period, the BTI’s commodity code may be used temporarily in customs declarations.

If you have made declarations using the BTI between the date of withdrawal and the approval of the extended use period, you may be eligible to request a repayment of overpaid duties. However, this may affect the agreed quantity of goods. If the extended use period continues, and the maximum quantity allowed under the BTI is exhausted, no further use of the old BTI is permitted.

5. Conclusion and further information

Once a BTI is withdrawn, its use is generally no longer permitted. This can have significant consequences. A BTI, in principle, provides certainty. This certainty is lost when the BTI is withdrawn. Under certain conditions, a transitional measure can be used. During this period, the BTI can still be used.

If you require further information about BTIs and the extended use period, please contact Theo Jonker.

While every care has been taken in the preparation of this publication, Customs Knowledge accepts no liability for any errors or omissions, nor for their consequences. This article is not intended as specific advice. Please also refer to the General Terms and Conditions of Customs Knowledge BV.