Adjustment of Customs Value: Possible Solutions

In importers’ practice, situations sometimes arise when the customs authorities increase the declared customs value of goods. This leads to an increase in mandatory payments (VAT, customs duties) and affects the economic indicators of the import operation. However, such an increase can be successfully challenged if proper justification is provided.

REVERA case: How we “reversed” a fourfold increase in value

• Issue: The client regularly imported identical goods. During the next shipment, the customs authority proposed increasing the value from EUR 8.3 per kg to EUR 34 per kg, referring to the method of comparison with identical (similar) goods.
• The time limit for responding to the request was extremely short, and the requirements regarding the completeness of documents were strict.

REVERA’s actions:

• Prompt formation of the legal position

We carried out legal and documentary analysis, examining the position of the customs authority.

Our conclusion: there were sufficient legal grounds for applying the method declared by the company — the transaction value of the imported goods.

• Collection of irrefutable evidence (the key to success).

We prepared a complete set of documents demonstrating the market level of prices:

1. Contracts and invoices for the current and previous shipments.
2. Documents confirming the further sale of the goods on the domestic market (including to a state-owned enterprise, which confirmed market pricing).
3. Export declaration (with translation): the value of the goods upon export from Lithuania matched the value declared upon import into Belarus.

Legal objection and technical nuances

We submitted to the customs authority a detailed, substantiated objection (9 pages) in which we not only proved the legality of the declared method but also demonstrated the economic unreasonableness of the value proposed by the customs authority.

An important argument: We pointed out that the customs authority used data outside the period of relevance established by the EAEU legislation.

Result:

The customs authority decided to release the goods in accordance with the originally declared value.

This case illustrates that a balanced professional approach, knowledge of technical nuances and thorough preparation make it possible to effectively protect business interests in dialogue with regulatory and enforcement authorities.

REVERA is ready to provide expert support on issues concerning the determination and defence of customs value.

Author: Mikhail Dzenisiuk.