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Legal support in disputes with customs authorities regarding the classification of goods and customs value
The most frequent disputes with customs authorities that may arise relate either to the classification of goods according to the UCG FEA or to the determination of their customs value at the border.
In case of their occurrence, it is necessary first of all to seek professional legal support, since the result of resolving such disputes has a direct impact on the amount of customs payments and the terms of customs clearance.
Therefore, this will simplify the life of citizens when interacting with customs or significantly complicate it.
Classification of goods during customs control: what disputes can arise with customs?
Customs classification of goods is a cornerstone in foreign economic activity. The control procedure in general depends on the correct determination of the commodity code according to the UCG FEA, since this or that type of commodity will (or will not) require obtaining additional permits.
This is essentially a key stage of customs clearance in general.
As stated in the current Customs Code of Ukraine, the classification of goods at customs is established according to the following basic principles:
- use of the rules of interpretation in the Law of Ukraine “On the Customs Tariff of Ukraine”;
- use of recommendations on the product nomenclature;
- classification before the goods are moved across the border.
According to the law, the customs authorities check whether the code of the goods has been correctly determined, which provides for checking the compliance of the description of the goods in the customs declaration with the data in the documents provided, the application of classification rules.
Based on this, the main reasons for the disputes that arise between customs and citizens at this stage are:
- changes in legislation;
- change in factual circumstances (for example, change in the purpose of goods);
- violation of the decision-making procedure by the customs authority;
- contradiction of the decision of the customs with the official explanation on the classification of goods provided by the State Customs Service, etc.
Determination of the customs value of goods: what actions of the declarant and on what issues can disputes arise with the customs authorities?
Determining the customs value of goods is one of the most important procedures in customs clearance. This process is directly regulated by the Customs Code of Ukraine.
In fact, this is the cost of goods that are used to calculate customs duties and other fees when they are moved across the border.
The declarant independently declares to the customs the declared customs value of goods, which is carried out by submitting:
- firstly, the customs declaration;
- secondly, a document confirming the declared value (foreign economic contract, invoice, insurance policy, etc.).
Based on the results of the verification of the correctness of the determination of the customs value, the relevant authority may recognize/not recognize the value declared by the declarant. As a result, an appropriate decision is issued.
The most common reason for the negative answer is the incorrectness of the application of one of the chosen methods of calculating the customs value in accordance with the current national legislation (Articles 57-64 of the Customs Code).
Legal support in disputes with customs authorities regarding the classification of goods and customs value: what services does a lawyer provide?
Disputes with customs authorities can lead to significant financial losses and other negative consequences if you do not seek professional legal support.
The customs attorney at Prikhodko & Partners Law Firm is deeply specialized in customs law, provides a range of services and takes into account all the individual features of each client’s request.
Below we will describe its services in more detail.
Legal advice
The first step in any dispute is to obtain qualified legal advice.
It lays the foundation for further protection strategy and includes:
- detailed analysis of the situation;
- obtaining a legal opinion;
- clarification of the legislation, the application of which will be relevant for resolving the dispute;
- definition of a strategy for protecting the client’s rights.
As a result, after the consultation, the person will have an exhaustive list of actions and documents that he will need to resolve the situation or appeal against illegal actions and decisions. The appeal process itself can be carried out both administratively and judicially.
Support of pre-trial (administrative) settlement of a dispute
Many disputes with customs authorities regarding the classification of goods and customs value can be resolved at the pre-trial stage.
To do this, it will be enough to perform the following series of actions:
- prepare a complaint to a higher state body;
- collect additional documents to confirm the illegality of customs actions;
- negotiate and conclude an agreement on the settlement of the dispute.
And at each of the stages mentioned above, a qualified and experienced customs lawyer will help.
Moreover, pre-trial settlement will be mandatory before directly applying to the court in case it was not possible to reach an appropriate agreement.
Representation of interests in litigation with customs
Finally, our lawyer provides full support of the case in court for clients, which includes:
- preparation of statements of claim, petitions and other documents (evidence base);
- representation of the client’s interests at court hearings;
- appeal against court decisions in appeal or cassation (if necessary).
To get the exact cost of a lawyer’s services and an individual action plan to resolve your specific dispute with the customs authority, we recommend that you fill out the form below.
Calculate the cost of services
1 question
Have you been denied customs clearance?
2 question
Did customs detect false data in the customs declaration — the value of the vessel is over 100 thousand UAH, the UKT foreign economic activity code, etc.?
3 question
Need help appealing a customs decision?
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