Advance Ruling
/ˈædvɑːns ˈrʊlɪŋ/
Definitions
- (n.) A formal decision issued by a tax or customs authority prior to a transaction, clarifying the interpretation of laws and regulations applicable to that transaction.
The company requested an advance ruling to ensure compliance with international tax laws before the merger.
- (n.) A preemptive declaration by an administrative or judicial body on the legal consequences of a planned act or transaction to provide certainty.
The importers sought an advance ruling to determine tariff classification for the new product.
Forms
- advance ruling
- advance rulings
Related terms
See also
Commentary
Advance rulings help mitigate legal uncertainty by allowing parties to obtain authoritative guidance before engaging in specific transactions.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.