Delays with customs clearance of goods became more frequent, – EBA

04/ 09/ 2020

In the period between September 1 and 3, 2020, businesses began to complain about delays in customs clearance of goods due to the control of the customs value. Based on the information of EBA member companies, only within this period more than 150 trucks, which carry goods and raw materials for the business, were suspended at the Galician and Kyiv customs posts due to the delays in customs clearance. According to the information received, such delays are related to the control of the customs value of goods and verification of information on the customs value of the declared goods at the level of the relevant department of the central office of the State Customs Service of Ukraine. Thus, after the declarant submits a complete package of documents for the customs value control, officials of regional customs unreasonably require additional documents on royalties, transfer pricing, etc. to verify the customs value. Later this package of documents is sent to the relevant department of the State Customs Service of Ukraine for further verification. However, no decision on the recognition of the customs value or its adjustment is made for more than 2 days because the regional customs officials lack information on the results of the document inspection made by officials of the central office. Given such circumstances, as of September 4, the goods are still in the customs control zone of the respective customs posts. This situation disrupts further production activities of businesses. Besides, such circumstances contradict the principles on the terms of customs clearance, defined by Article 255 of the Customs Code of Ukraine. It should be noted that in case of further delays in customs clearance of such goods, some companies will have to suspend production capacity for an indefinite period, which will cause significant damage to the property interests and reputation of these enterprises. And, consequently, it will negatively affect the income of companies and their capacity to pay taxes to the budget. Therefore, the European Business Association appeals to Andriy Pavlovsky, Acting Head of the State Customs Service, with a request to resolve this situation so that transparent companies can continue working. Besides, the business proposes to hold a joint meeting shortly to establish a constructive dialogue and end the blocking of business activities. Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.

In the period between September 1 and 3, 2020, businesses began to complain about delays in customs clearance of goods due to the control of the customs value.

Based on the information of EBA member companies, only within this period more than 150 trucks, which carry goods and raw materials for the business, were suspended at the Galician and Kyiv customs posts due to the delays in customs clearance.

According to the information received, such delays are related to the control of the customs value of goods and verification of information on the customs value of the declared goods at the level of the relevant department of the central office of the State Customs Service of Ukraine.

Thus, after the declarant submits a complete package of documents for the customs value control, officials of regional customs unreasonably require additional documents on royalties, transfer pricing, etc. to verify the customs value. Later this package of documents is sent to the relevant department of the State Customs Service of Ukraine for further verification. However, no decision on the recognition of the customs value or its adjustment is made for more than 2 days because the regional customs officials lack information on the results of the document inspection made by officials of the central office.

Given such circumstances, as of September 4, the goods are still in the customs control zone of the respective customs posts. This situation disrupts further production activities of businesses. Besides, such circumstances contradict the principles on the terms of customs clearance, defined by Article 255 of the Customs Code of Ukraine.

It should be noted that in case of further delays in customs clearance of such goods, some companies will have to suspend production capacity for an indefinite period, which will cause significant damage to the property interests and reputation of these enterprises. And, consequently, it will negatively affect the income of companies and their capacity to pay taxes to the budget.

Therefore, the European Business Association appeals to Andriy Pavlovsky, Acting Head of the State Customs Service, with a request to resolve this situation so that transparent companies can continue working. Besides, the business proposes to hold a joint meeting shortly to establish a constructive dialogue and end the blocking of business activities.

Be the first to learn about the latest EBA news with our Telegram-channel – EBAUkraine.