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MEDT decides to drop sanctions against the company 

25.01.2019

Subject of complaint: The Ministry of Economic Development and Trade of Ukraine (MEDT) 
 
Complaint in brief: On October 17, 2018, a raw materials supplier for the cosmetic and pharmaceutical industry turned to the Council. The company was concerned about MEDT individual sanctions that might be imposed on it. According to the State Fiscal Service of Ukraine, the Complainant violated currency legislation, failing to complete customs formalities on time. As a result, the tax authority initiated a sanction imposing process, while MEDT launched a sanction procedure by sending an official warning to the Complainant. 

Disagreeing with the violations described by the government agency, the company denied allegations in a letter to MEDT in writing
In addition, the Complainant appealed to the Business Ombudsman Council. As it was established, the imported goods crossed the border of Ukraine, but its customs clearance was not completed for reasons beyond the control of the Complainant. 
 
Actions taken: The investigator collected information on the Complainant’s case. He thoroughly studied the supplier's contract with the counterparty, in which the tax authority saw alleged violations as well as the the company’s correspondence with MEDT. Having made sure the Complainant was right, the investigator wrote to the ministry and asked to take into account the Council's position regarding absence of violations on the part of the Complainant, since for currency regulation issues, the main point is the moment of imported goods crossing the border, rather than a customs declaration drawn up according to a regular procedure. 
 
Result achieved: MEDT accepted the Council’s arguments and decided to drop individual sanctions against the company. The complainant thanked the Council for "high professionalism" in reviewing the complaint, which allowed the company to continue its legal activities. The case was closed successfully.