The Business Ombudsman Council received a complaint from a mirror-importing company. It reported issues with customs authorities, who consistently adjusted the customs value of mirrors to a higher rate than the company had declared. Because of this, the importer had to pay more duties and VAT. These actions were carried out regularly by customs, significantly increasing the company’s expenses. Moreover, this situation jeopardized the normal operation of the company.
The company attempted to resolve the issue with customs independently. It provided all necessary documents proving the true value of the goods, but customs continued to increase it. The complainant even went to court and won several cases against customs authorities, but with each new supply of mirrors, the same situation repeated. Due to these constant legal battles, over a million of hryvnias of the company’s funds were tied up in the judicial system.
Exhausted by this draining struggle, the company decided to turn to BOC for assistance.
After carefully examining the complaint and all documents, the Business Ombudsman Council reviewed the customs authorities’ arguments for adjusting the customs value. BOC concluded that the customs position was insufficiently substantiated, while the complainant had provided evidence supporting the declared customs value.
Furthermore, the Council noted that customs had unjustifiably used the fallback method for determining customs value. Judicial precedent in similar situations has consistently favored businesses.
Considering all these factors, the Council prepared an official letter to the State Customs Service of Ukraine, requesting to review the case with the participation of the company representatives and the Council itself. The BOC’s intervention brought more attention to the case, and the position was thoroughly conveyed to the State Customs Service.
As a result, the State Customs Service canceled the decision to adjust the customs value of goods. This means that the initial customs value declared by the complainant was recognized as correct, and additional customs charges were canceled.
