The binding ruling request program enables importers and other interested parties to receive binding decision from U.S. Customs and Border Protection (“CBP”) regarding import and export queries. The requestor generally receives a decision within thirty (30) days and the decision is binding upon all ports of entry nationwide. Our firm regularly prepares ruling requests to CBP for clarity on all import and export related matters.
What is a binding ruling request?
A binding ruling request is an official request submitted to CBP seeking a ruling on the classification, customs valuation, or marking of goods. Suppose a company wants to import a new product. In that case, it may be unsure about how to classify the product or whether it needs a specific marking. A binding ruling request asks CBP to make a binding decision on these issues, providing legal certainty and avoiding future disputes.
Why are binding ruling requests essential for Customs compliance?
Compliance with Customs regulations is essential to avoid unexpected penalties, fines, and even the confiscation of goods. Sometimes there is confusion about the correct classification or valuation of goods, which could lead to disagreements with CBP concerning import duties and other fees. Companies can avoid disputes and potential legal actions by submitting a request before the import of goods.
How does the request process work?
To submit a binding ruling request, a company must provide complete and accurate information about the product in question. The request should contain a detailed description of the product, its use, and how it is manufactured. All relevant documentation, such as invoices and technical specifications, should be provided. The CBP will review the request and issue a response. The CBP response is binding for the company that requested the ruling and all other importers of the same product.
What are the benefits of a binding ruling request?
A request provides companies with legal certainty on how to comply with Customs regulations. Without a binding ruling, bureaucracy and confusion can arise, leading to litigation, fines, and lost time. A company that has obtained a binding ruling can confidently import and distribute goods, knowing that it has fulfilled all legal requirements.