All goods that cross the border pass through customs control. The documents provided by the importer indicate the value of the goods. On its basis, the regulatory authorities calculate duties and taxes. Of course, the FCS is interested in obtaining maximum amounts. To do this, the control structures carry out the adjustment of the customs value (CCC). This procedure is quite unpleasant. We will examine further its features.
Control and adjustment of customs value: general information
The price declared by the declarant of the imported products may be revised if the TCF division does not agree with its amount. The legislation has several methods for adjusting the customs value. The practice of applying price revisions is quite extensive. According to statistics, almost always the cost declared by the carrier is adjusted at customs.
Authorized employees during the passage of goods through the border may:
- Accept documents and arrange products.
- Adjust the customs value of the release of goods.
- Carry out an additional check.
The adoption of a decision depends on a number of factors. It must be said that there are certain price limits, which are not allowed to be underestimated. In addition, regulations provide incentives for exceeding the plan for tax revenues.
As a result of the adjustment, the customs value of the goods may be increased or decreased. The latter, of course, is extremely rare in practice. In most cases, the declarant will have to incur additional costs associated with the transportation of goods.
Grounds
In what cases is the customs value adjusted? Price review is carried out upon identification of:
- Arithmetic errors in the calculations.
- Inconsistencies between indicators in the declaration and accompanying documents.
- Errors in choosing a costing method.
- The apparent discrepancy between the declared price and the information on the cost of products of the same type available to the customs authority.
Difficulty in practice
According to the established procedure, the adjustment of the customs value must be justified. This means that during the revision it is necessary to provide documentary evidence, indicate the source of information used for the allocation.
At first glance, the adjustment of customs value is a transparent procedure and should not be accompanied by special difficulties in practice. Meanwhile, declarants often experience difficulties in independently preparing documentation. There is no possibility to centrally control information about the cost, delivery conditions, other data affecting the determination of the price of products.
As a result, often foreign trade participants file complaints with the court against decisions of the FCS.
General rules
The customs value of goods transported across the border of the Customs Union is calculated in accordance with the procedure established by the intergovernmental agreement of January 25, 2008. The procedure for determining it is based on the principles enshrined in Art. 7 of the General Agreement of 1994
The customs value is declared by the importer - declarant. The FCS authority may agree with it or amend it. If in the process of control the inspection body doubts the correctness of the documents, reveals false information, discovers other factors that complicate the decision on the further clearance of the goods, a check is appointed. It includes a request for information confirming the declared value. In addition, during the inspection, a preliminary calculation of the amount of customs duties is carried out taking into account the adjusted value.
If the declarant has not provided the proper documents or the information in them seemed doubtful to the control body, the applicant may choose: to pay the amount of security for payment of customs duties after adjusting the customs value, or to withdraw the declaration. However, the latter problem will not be solved.
Customs Value Adjustment Forms
The price review may be final or conditional. Immediately determine what the adjustment will be, it is impossible.
In the decision on the review, the control body provides a list of the necessary documentation and indicates the period for its submission. In addition, the declarant is given a preliminary calculation of the provision of customs duties.
The declarant may present the requested documents and wait for the final decision of the FCS or write consent to the adjustment with the subsequent provision of the required securities. The importer is also entitled to challenge the decision of the control body.
Negative consequences of failure
If the declarant does not agree to pay the revised cost, no one can force him to do so. In such cases, the declaration is withdrawn. However, you cannot pick up the goods from the warehouse. It will be in storage until a final decision is made by the FCS. In order to avoid these problems, participants in foreign trade agree to an adjustment and pay security fees.
The cargo can be in stock no more than 4 months. At the same time, storage will have to be paid. Often this is quite an impressive amount. In addition, often contracts stipulate liability for late deliveries, simple transport, etc. Therefore, the decision to refuse to pay security must be taken in all circumstances.
Features of KTS forms
At the final adjustment, funds are debited from the declarant’s account immediately to the budget. Under conditional CCC, money is reserved until the final decision is made by the control body. If, after presenting all the requested documents, a decision is made on the final adjustment, participants in foreign economic activity are also charged late fees. Unfortunately, not all declarants are aware of this.
Challenging the decision
If the adjustment was conditional, there is a probability of returning funds frozen by the control body after providing the required documents. Cases of unlocking funds are not uncommon in practice.
If the review was final, the declarant has 2 options: challenge the decision in a higher customs authority or sue.
The effectiveness of the first method depends on a number of factors and features of the structure considering the application. It is advisable for the declarant to contact a qualified lawyer or customs representative. In addition, it is necessary to have conclusive evidence of the correctness of the calculation. In this case, all risks should be taken into account. If the complaint is not satisfied, the applicant will lose time - at least a month (this is the time limit for consideration).
The second way is going to court. As practice shows, this option is the most effective. The courts, while satisfying the applications, point to the unproven fact of the unreliability or insufficiency of information (documents) provided by the declarants. To win a case, you need a competent lawyer.
When applying to the court, you also need to remember the timing. It takes 3-6 months to resolve the dispute. Often the case goes through the first, appeal and cassation instances. If the application is satisfied, it will take some time to return the money transferred to the budget.
Finally
Unfortunately, the fact of direct contact with the manufacturer of the product, the availability of the required documentation for the goods is not considered a reason for not adjusting the cost. The price of cargo transported across the border should cover risks. If this does not happen, a review is ensured. Accordingly, each importer should be prepared for possible problems at the customs point. Guaranteed to avoid adjustment today is impossible.
As for litigation, the authorities need to carefully study all the circumstances of a particular case. Declarants, in turn, need to have a lawyer who will help win the proceedings.