LEGRANT challenged the order of the Odessa Customs Office on the alleged duties evasion

August 9, 2019 · News

LEGRANT's client, the customs broker, has concluded an agreement with its client on the provision of services on customs clearance of the car.

The vehicle was purchased at an auction in the U.S. and had a number of defects: a broken headlight, a wing, etc. While importing the car, the broker filed a customs declaration and attached a number of documents confirming its value and condition. However, the customs authorities found a number of inaccuracies, e.g. certain defects claimed by the broker were absent. Eventually, the customs corrected the value and charged the additional duties. Furthermore, the customs authorities issued an order on violation of the Article 485 of the Customs Code of Ukraine (actions aimed on illegal reduction of customs duties) in respect of the broker.

The customs authorities argued that the broker had reduced the amount of customs duties accrued having indicated non-existent defects. As a result, the broker was fined about UAH 100,000. The broker appealed to LEGRANT.

LEGRANT's lawyers have analyzed the situation and filed a claim to the court, justifying the illegality of the order by the lack of intent to commit the stipulated actions provided for by the article 485 of CC Ukraine. In addition, the value of the car was declared according to the invoice provided by the client, and therefore the absence of some damages did not affect the determination of the value.

Despite numerous objections from the customs representatives in the court session, the court adopted the position of LEGRANT and overturned the order. The appellate court subsequently upheld the decision.

The case was accompanied by LEGRANT's senior lawyer Danil Hristich and lawyer Sergey Platonov under the general guidance of managing partner Tatyana Titarenko.