Binding Origin Information : The Key to Optimizing Your Trade
In international trade, the origin of goods plays a crucial role in ensuring compliance with customs regulations and benefiting from preferential tariff treatments. In this regard, the Binding Origin Information (BOI) is a key tool for companies seeking to secure their import and export operations.
For companies engaged in international trade, applying for a BOI offers several advantages. First, it helps avoid customs declaration errors that could lead to penalties or costly disputes. Additionally, the BOI enhances a company’s competitiveness by facilitating access to trade agreements and optimizing supply chains through a better understanding of origin rules.
Obtaining a BOI follows a well-defined procedure. Companies must submit an application to the customs administration of the Member State where they are established or where the BOI will be used. This application requires filling out the Cerfa form No. 13172*05, accompanied by supporting documents on the origin of the products and manufacturing processes. Once the application is submitted, customs authorities have 120 days to provide a response.
If the BOI is granted, it is valid for three years and is enforceable throughout the European Union.
he BOI is a legal decision issued by the customs administration that precisely and legally determines the origin of a product. This ensures that customs duties are correctly applied and allows companies to benefit from the trade advantages of free trade agreements. Depending on the nature of the trade, the origin of a product can be preferential or non-preferential.
Preferential origin allows for reduced or zero customs duties under bilateral or multilateral trade agreements. Non-preferential origin, on the other hand, applies to general trade provisions such as antidumping duties or import quotas.
It is important to note that a BOI can only be invoked by its holder and cannot have retroactive effect.
This means that companies must anticipate their needs and ensure that all information provided in the application remains accurate throughout the validity period of the BOI. Moreover, if there are changes in production conditions or sourcing, it may be necessary to apply for a new BOI to ensure compliance with future operations.
In addition to the BOI, other customs tools such as the Binding Tariff Information (BTI) or Customs Valuation Advice (CVA) help secure international trade operations.
