Appealing the decision on the adjustment of the customs value of the goods

The import business has its own challenges, one of the key aspects of which is the clearance of goods at optimal prices. However, often in legal relations with customs authorities, disputes may arise regarding the determination of the customs value of goods or commercial vehicles. In this context, the role of a customs attorney becomes especially important.

In Ukraine, in recent years, the number of administrative cases related to the appeal of decisions regarding the determination of the value of goods has increased significantly. As a rule, disputes arise due to the fact that the declarant and the customs authority determine the value of the goods using different methods. However, the authority of customs to determine the value of goods is limited, and the choice of the appropriate method (procedure, conditions, legal grounds) is clearly regulated by law.

What documents confirm the customs value

Documents confirming the customs value include a foreign trade contract, an invoice, bank payment documents, the seller’s commercial offer, a certificate from the chamber of commerce and industry of the seller’s country about the average statistical value of the required goods, insurance documents if they contain information about the value of the insured goods, etc.

If necessary, the declarant can also submit additional documents confirming the value of the goods. The deadline for submitting additional documents is 10 calendar days from the moment of receipt of the request from the customs authority.

In order to understand when the decisions of the customs authorities are illegal and can be appealed, it is worth considering several key aspects.

First, it is worth excluding the possibility of incomplete or unreliable data in the documents submitted for customs clearance. This may cause the customs authorities to use secondary methods of determining the customs value. However, it is important to understand that not every discrepancy in the documents can serve as a basis for adjusting the customs value. The decision of the customs authority must be justified and contain sufficient arguments for rejecting the value declared by the declarant.

Secondly, it is important to establish whether consultations were held between the customs authority and the declarant regarding the determination of the customs value. According to Part 4 of Article 57 of the Customs Code of Ukraine, prior to the application of secondary methods of determining the customs value, consultations must be held in order to determine the basis of the value in accordance with the established rules. These consultations should not only be a formal process, but also aimed at resolving issues and agreeing information between the parties.

Thirdly, it is important to analyze the form and content of the decision to adjust the customs value adopted by the customs body. This includes checking the compliance of the decision with the requirements of the legislation and the presence of sufficient arguments for the application of secondary methods of determining the customs value. For example, the decision should contain information about the results of consultations, the reasons for rejecting the main method and the inability to determine the customs value at the contract price for identical or similar goods.

It should be taken into account that secondary methods of determining the value of goods are used according to the principle of priority, that is, if the value cannot be determined by the first method, then the next method is used, and so on.

Terms and procedures for appealing decisions

The first way of appeal is the declarant’s appeal to the customs authority (administrative appeal). According to Part 8 of Article 55 of the Customs Code of Ukraine, the declarant has the right to submit additional documents to the customs authority within 80 days from the date of release of the goods to confirm the declared customs value. It is important to note that this application must be in writing and submitted together with the necessary documents.

The customs authority has 5 working days to consider additional documents. After that, he issues a written decision on the recognition of the declared customs value or provides a reasoned refusal to recognize the declared customs value, taking into account the submitted documents.

The inaction of the customs authority regarding the review of the complaint should be interpreted as a positive decision for the declarant, which has the effect of confirming his right to make the appropriate payments based on the value of the goods determined by him, not the customs, and the return of the corresponding funds overpaid by the declarant.

As a rule, the method of administrative appeal works quite rarely, and the declarant has to defend his rights in court.

The second way is to appeal to the administrative court at the location of the declarant or the customs authority. The term for applying to the court is six months from the moment of the decision to adjust the customs value.

Appealing decisions regarding the adjustment of the customs value of goods is a complex process that requires competence and experience in the field of customs affairs. A customs lawyer can provide qualified assistance in this case, helping to protect the client’s rights and interests in interaction with customs authorities and in the process of legal representation.

Contact us for advice and professional support in cases of appeals against decisions on determining the customs value of goods!