The customs value should be determined by the declarant in accordance with the Code, and not regulated by the internal convictions of the Customs, – EBA

16/ 06/ 2020

A draft law №3562 amending the Customs Code  was recently registered in the Verkhovna Rada. According to the document, it is planned to expand the authorities of the Customs Service in terms of the confirmation of the customs value of goods.

The draft law implies that the customs officer can adjust the customs value by setting a “fair” price at his subjective opinion, regardless of the terms of the foreign trade transaction and the contract price set and agreed by the parties (businesses) in the contract, etc. Besides, the business may require additional documents confirming the customs value established in the contact. However, the draft law does not prescribe an exhaustive list of such documents. According to the community, the list of such documents should be established by the Customs Code to ensure the stability of companies and cannot be changed regularly at the discretion of the State Customs Service of Ukraine.

Natalia Artemchuk Tax & Customs Committees Coordinator
The business is greatly concerned about the draft law as it may worsen the process for the confirmation of customs value, as the determination of customs value will be regulated not by numerical indicators of components, but by various letters, clarifications, and internal documents of Customs. The procedure becomes less clear for the business, and it may change quite often without prior notice.

According to estimates, draft law No.3562 increases the discretionary powers of customs, which in turn will increase pressure on business, which may increase the demand for “gray smuggling schemes.” Therefore, the European Business Association appeals to the Minister of Finance of Ukraine Serhii Marchenko and the Chairman of the Verkhovna Rada Committee on Taxation and Customs Policy Danylo Hetmantsev with a call to keep the customs valuation procedure within the scope of the Customs Code so that business has more stability and predictability in the customs procedures, and is sure that its operations are not dependent on changes in the customs regulation. Moreover, increasing pressure on transparent businesses is unacceptable given the economic crisis caused by anti-coronavirus restrictive measures.

At the same time, more emphasis should be placed on reforming the Customs Service and ensuring its effective and impartial work that protects and upholds the interests of transparent business. We hope the voice of business will be heard!


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