Violation of customs legislation
Violation of customs legislation occurs when a subject of foreign economic activity (an enterprise or individual involved in customs operations) violates the rules, requirements, norms, and procedures established by laws and regulatory acts in the field of customs activities. Such violations can take various forms and have consequences, including legal, financial, and reputational. Dextralaw provides professional legal services in customs law, assisting its clients in quickly and efficiently addressing all issues related to violations of customs legislation.
Most Common Violations of Customs Legislation
Here is a current list of the most common violations of customs legislation:
- non-declaration or false declaration of goods;
- attempts to evade the payment of customs duties;
- non-compliance with customs rules and procedures;
- use of counterfeit documents;
- illegal trafficking of contraband goods;
- non-compliance with quality and safety standards;
- violation of licensing rules;
- illegal crossing of the customs border by currency, valuables;
- violating customs rules during the transportation of people.
Disputes with Customs
Customs disputes arise when subjects of foreign economic activity and customs authorities have differences in the interpretation or application of customs norms, rules, tariffs, and procedures. Disputes can arise at various stages of the customs process, including customs clearance, classification of goods, determination of value, application of concessions and discounts, customs control, and other aspects.
Main reasons for disputes with customs:
- differences in defining the goods code according to the goods classification system, which can affect the tariff of the customs duty and other compulsory customs payments;
- discrepancies between the value of goods indicated in the customs declarations and the value determined by the customs authorities;
- differences in the application of concessions, discounts, or other customs preferences, which can affect the amount of customs payments;
- errors or deficiencies in customs declarations, documents, or permits;
- denial of concessions or services.
Types of Disputes in Customs Legal Relations
In customs legal relations, the following types of disputes typically arise:
- on the classification of goods;
- on the value of goods;
- on the application of concessions and discounts;
- on customs control;
- on the review of customs documents;
- on violations of customs rules;
- on licensing and permit procedures;
- on rules and procedures for the customs processing of individuals.
Customs Disputes on the Value of Goods
Customs disputes on the value of goods arise from differences in determining the value of goods during customs clearance. Key aspects of disputes:
- Unreliable value. Subjects of foreign economic activity and customs authorities may disagree regarding the value of goods indicated in the customs declaration.
- Valuation method. Disputes can arise regarding the choice of the valuation method of the goods’ value, such as the method of identical goods’ cost or the method of similar goods’ cost.
- Adjustments and concessions. The application of adjustments to the value, as well as attempts to include additional elements in it, can lead to disputes.
- Documentary justification. It is crucial to have reliable documents confirming the value of goods.
Customs Lawyer at Dextralaw provides:
- conducting negotiations with customs authorities;
- providing additional documentation;
- consideration in appellate bodies or even judicial review, etc.
What We Offer
Among the key services in the field of customs law for legal entities, Dextralaw specialists offer:
- consultations on moving goods across the customs border of Ukraine in the modes of export, import, temporary import, transit;
- registration and deregistration of a subject of foreign economic activity;
- preparation of documentation, contracts;
- examination of documents related to foreign economic activity;
- preparation of a package of documents for obtaining permits;
- support at all stages of customs control and clearance of goods;
- providing tax consultations to prevent unjustified demands by customs;
- appealing refusals in customs clearance; preparing a package of documents substantiating the declared customs value;
- legal support during consultations with customs on determining the customs value;
- compiling a package of documents aimed at determining the customs value in accordance with Article 55 of the Customs Code of Ukraine;
- consultations on optimizing customs payments when concluding and executing foreign economic contracts;
- challenging the actions of customs authorities regarding the determination of customs value; appealing the actions of customs in court;
- full range of services related to representation in courts;
- preparation of a statement of claim, appeals, and cassation complaints, representation at court sessions; appealing the demands / decisions of customs authorities on payments/fines;
- ensuring the refund of overpayments during the customs clearance of goods;
- accompanying the case for the recovery of losses caused by illegal actions or inaction of customs authorities;
- return of goods, vehicles that are confiscated by customs authorities and are stored during the consideration of the case of violation of customs rules;
- preparation of documents for obtaining a preliminary decision on the code of goods;
- representation during the selection of samples and conducting studies;
- retrieving seized samples for re-examination in an independent expert institution for use as evidence when appealing the actions of customs;
- preparing documents for obtaining a preliminary decision on the country of origin of the goods;
- preparation and processing of documents to obtain the status of an approved exporter;
- processing documents to obtain a certificate of origin of goods (EUR-1);
- representation during checks for the presence of a sufficient criterion for processing at the request of customs authorities of foreign countries;
- preparing documents for the inclusion of goods in the customs register of intellectual property objects for the purpose of protecting the rights of rights holders;
- preparing documents in case of suspension by customs of imported goods on suspicion of violation of intellectual property rights;
- representation during on-site and off-site inspections of subjects of foreign economic activity;
- preparation for recognizing goods as humanitarian aid; taking measures to eliminate possible abuses in foreign economic activity;
- legal support for the import and customs clearance of goods;
- legal support for operations related to freight and transportation;
- ensuring the resolution of disputes arising between contractors and state seaports.
Violations of customs legislation can arise due to insufficient awareness of the rules, attempts to reduce costs, competitive pressure, the complexity of customs procedures, and inadequate control activities.
Violations can lead to fines, confiscation of goods, loss of permits, damage to reputation, legal proceedings, and also have a negative impact on relationships with partners.
Preventing violations is possible through proper training and enhancing the qualifications of staff, accurate determination of the value of goods, adherence to customs procedures, and collaboration with customs consultants.