If the customs authority reclassifies the goods code under the Ukrainian Classification of Goods for Foreign Economic Activity (UCG FEA code) or changes the customs value of goods it has negative consequences not only for the company, but also leads to the its officials liability. In particular, the customs authority decides in such cases that during the customs clearance of goods the Director (or other official) of the company has committed intentional actions aimed at reducing customs duties.
The Supreme Court analysed the legitimacy of such approach of the customs authority and determined the conditions under which the officials can be liable for the customs regulation’s violation. In particular, the court concluded the following:
Given the fact that the customs authority did not provide sufficient evidences to confirm the plaintiff's intent to understate customs duties by reporting inaccurate information about the goods, the Supreme Court upheld illegal and cancelled the decision of the customs authority re violation of customs rules.
How can KPMG help in customs matters?
© 2021 KPMG. KPMG refers Limited Liability Company “KPMG Ukraine” and/or Private Joint-Stock company "KPMG Audit" and/or ATTORNEYS ASSOCIATION ''KPMG LAW UKRAINE'', companies incorporated under the Laws of Ukraine, member firms of the KPMG global organization of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved.
For more detail about the structure of the KPMG global organization please visit https://home.kpmg/governance.