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Kyiv Customs agrees that imported goods qualify for zero tax rate

12.09.2017

Subject of complaint: Kyiv Customs of SFS (Kyiv Customs)

Complaint in brief: On August 4, 2017, a company turned to the BOC with a complaint against the Kyiv Customs office. The Complainant had been importing goods to Ukraine at the zero tax rate for many years, but in March Customs decided to change the product’s import code, which increased duty on the goods to 6.5%.

The Complainant tried independently to convince the SFS that the decision was unsubstantiated, but without success.

Actions taken: On August 11, the BOC investigator organized a meeting with Kyiv Customs. During the meeting, the two sides thoroughly studied all the evidence in the case, including lab test results that failed to provide a clear answer about the customs classification of the products. As a result, Kyiv Customs acknowledged that the chemical formula and physical properties confirmed by the manufacturer should be decisive in determining the classification. The parties agreed that the Complainant would prepare additional documents to prove the chemical and physical properties of the imported goods. The Complainant provided experts at Kyiv Customs with the formula for the food supplements, which proved that they did belong to the zero tax group. 

Result achieved: On August 29, the Complainant reported that the company’s goods had been set at the zero tax rate. This allowed the company to save UAH 1,2 mn.