What is a Binding Origin Information (WIP) and why should it be requested?

Binding Origin Information, so called WIP, confirms the information on the origin of goods to entrepreneurs and supports uniform interpretation of the rules of origin. It is an administrative decision issued by the Director of Tax Administration Chamber in Warsaw at the request of the interested party.

How to obtain a WIP?

Although the regulations don’t indicate a dedicated form on which an application for a WIP should be submitted, however, in order to facilitate the application process and shorten the waiting time for the decision to be issued, it is recommended to use the model application form, which was an annex to the now-defunct Ordinance of the Minister of Finance of 22 July 2011 on model forms used in customs matters.

What scope does the WIP cover?

An application may only be submitted in respect of one type of goods
and one set of circumstances that are relevant to the determination of origin.

One type of goods means that they are classified under the same tariff heading, and one set of circumstances determines identical conditions for obtaining the goods, using the same manufacturing process.

Is it always possible to apply for a WIP?

An applicant may only submit a WIP application if it is linked to the intended use of the decision or is related to the intended use of a customs procedure. In other cases, the application will not be accepted.

In addition, an application will not be accepted if it is submitted or has previously been submitted to the authority by or on behalf of the holder in respect of the same circumstances determining the origin of the goods.

What data should the application for the issuance of a WIP contain?

In order to obtain a decision, the application should contain the following information:

• the applicant’s details, business address, telephone, email address and EORI number (we informed you about what an EORI number is and how to obtain one in this post “EORI number, a ticket to sell and buy goods from outside the European Union“);
• details of the proxy, if any;
• CN/HS code of the goods covered by the application;
• the description of the goods and their commercial designation;
• composition of the goods;
• the country of origin;
• the materials used in producing the goods and their origin;
• description of the production process of the good;
• reference to the WIP or WIT decisions issued relating to identical or similar goods (these need not concern the applicant);
• additional information on any pending legal or administrative proceedings relating to the origin of the goods, together with the reference number.

The application for a WIP is free of charge. If a proxy is appointed to submit the application on behalf of the applicant, it is necessary to remember to grant an appropriate power of attorney and pay stamp duty of PLN 17.00 on it.

Waiting time for issuing decisions and their validity

The authority will issue a decision within 120 days from the date of acceptance of the application.

Importantly, the acceptance of the application should not be understood as its submission.

If it is exceptionally difficult to determine the origin of the goods to which the application relates, the authority may extend the proceedings by a further 30 days in order to verify the information provided in the application. If, in the course of examining the information provided by the applicant, the authority considers that it is not possible to issue a decision on the basis of this information, it will refuse to issue a WIP.

Validity of a WIP

WIP decisions are valid for three years from the date they take effect.

However, they may cease to be valid before this period expires if:

• the European Union has adopted a regulation or concluded an agreement that applies in the European Union and the WIP decision no longer complies with the provisions laid down therein;
• or the decision is no longer in conformity with the WTO agreement on rules of origin or with the explanatory notes or the opinion on origin adopted for the interpretation of that agreement.

Why is it advisable to request a WIP?

Binding Origin Information is undoubtedly a decision that not only facilitates the work of customs authorities during certain customs procedures, but also assists in the uniform interpretation of rules of origin.

Obtaining the decision is not complicated, nevertheless, in the multitude of tax obligations that traders have to deal with, it is worth engaging external advisors for at least part of it.

If you are interested in obtaining a WIP, please contact the tax department of our law firm, which will support you in submitting the appropriate application.

Author:
Aleksandra Philips, LL.B., VAT Specialist