State Customs Service accepts declaration from medical gloves importer

Customs issues: Administrative proceedings Kyiv

Complainee: Kyiv Customs of the State Customs Service (Kyiv Customs)
Complaint in brief: The Business Ombudsman Council received a complaint from an enterprise concerning holding
the importer’s declarant accountable and imposing a fine on him of over UAH 1 mn under Article 485 of the Customs Code of Ukraine.
The point of the dispute was that the customs authority disagreed with the company’s position on application of VAT preferences to imported goods (nitrile gloves) according to the legislation adopted in response to the coronavirus pandemic.
The customs service considered it unreasonable to classify the imported goods as those necessary for taking measures aimed at preventing occurrence and spread, localization and elimination of outbreaks, epidemics and pandemics of COVID-19 acute respiratory disease caused by SARS-CoV-2. (Resolution of the Cabinet of Ministers of Ukraine No.224 dated March 20, 2020). When a report on violation of customs rules was drawn up against the declarant of the enterprise, he turned to the BOC for help.
Actions taken: The investigator of the Council drew attention of Kyiv Customs (during the case investigation) and the State Customs Service (during the appeal against the decision to prosecute) to absence of a crime, and, in particular, to the obvious lack of intent of the declarant to commit illegal actions. During the case сonsideration, positions of customs authorities diverged, the central office, agreeing with the position of the declarant and the Council, twice revoked the decisions of Kyiv Customs submitting the case for are-consideration. Finally, during the third hearing, Kyiv Customs decided to close the case due to absence of a crime.
Result achieved: Kyiv Customs upheld the BOC recommendations and closed the proceeding concerning  violation of customs rules due to absence of a crime. The case was successfully closed.

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