Mykolayiv Customs stops adjusting customs value of imported fish

Customs issues: Valuation

Subject of the complaint: Mykolayiv Customs of the State Fiscal Service (Mykolayiv Customs)
Complaint in brief: On November 14, 2017, a distributor of fish and seafood turned to the BOC. According to the Complainant, Mykolayiv Customs had unreasonably increased the customs value of the goods they were importing.
In September, the company had imported a batch of herring directly from a Norwegian supplier. To confirm the price of the goods for the customs authority, the importer prepared an exhaustive package of documents. According to law, the first method for determining the customs value of goods is through the sale and purchase contract, which was enclosed with the goods. Prices are supposed to be determined using other methods only when it is impossible to determine it through a contract. Nevertheless, Mykolayiv Customs did not recognize the price specified in the contract. Instead, it suggested another value, higher by nearly 10%, which Customs had calculated based on similar contracts, but without taking into account seasonal price fluctuations for herring.
Disagreeing with the value adjustment, the importer filed a complaint with the customs authority, but it was rejected. 
Actions taken: The Council’s investigator thoroughly examined the case materials and then participated in the review of the company’s complaint at the SFS and supported its position.
Result achieved: With the assistance of the Council, the SFS adopted Complainant’s additional documents and agreed his declared customs value of the goods. This saved the company nearly UAH 900 000.

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