12.06.2018

DCV adjustment on imported rubber

Customs issues: Clearance delay/refusal Kyiv

Subject of Complaint: Kyiv Customs of the SFS (Kyiv Customs) 
Complaint in brief: In December 2017, the BOC received a complaint from “KYIVGUMA”, a leading Ukrainian manufacturer of rubber goods.  According to the Complainant, Kyiv Customs had increased the DCV of imported rubber without justification. 
In November, the company imported a batch of rubber from an Estonian supplier. In support of the price of goods for the customs authority, the importer prepared an extensive package of documents. Still, Kyiv Customs refused to accept the price specified in the contract. According to Customs, the documents did not contain all the information confirming the value of the rubber because the shipper did not specify delivery terms in accordance with Incoterms-2010 rules. In addition, the specialized expert evaluating agency, Derzhpromzovnishekspertyza, which had confirmed the value of the rubber, had not provided copies of the data and information sources. 
Disagreeing with the DCV adjustment, the importer filed a complaint with Customs and appealed to the BOC. 
Actions taken: The BOC investigator reviewed the case materials and sent a letter to the SFS in March, where he supported the company’s position. In addition, he met with SFS officials to discuss the Complainant’s case. The SFS agreed to consider importer’s additional documents and requested written confirmation of the price from the Estonian counterparty.
Result achieved: With the assistance of the Council, Kyiv Customs accepted the Complainant’s additional documents and approved the DCV of the imported rubber. For the first time, the Complainant did not have to deal with a court challenge but was able to resolve the issue over the DCV administratively. The case was closed successfully.
 

Next case:: SFS cancels taxes and penalties for UAH 630 mn, additionally charged to a machine-building plant