Customs Benefits and Tariff Preferences: how to appeal the non-application

Legal assistance in disputes regarding the application of customs benefits and tariff preferences

legal support under the law of the eurasian economic union

The Treaty on the Eurasian Economic Union stipulates that, in order to promote the economic development of developing and least developed countries of the EAEU, tariff preferences may be provided for goods originating from developing countries that are users of the unified system of tariff preferences of the EAEU.

The list of goods is determined by the Decision of the Council of the Eurasian Economic Commission dated January 13, 2017 No. 8 “On the list of goods originating from developing countries or from least developed countries in respect of which tariff preferences are provided when imported into the customs territory of the Eurasian Economic Union.” In relation to preferential goods imported into the customs territory of the EAEU, originating from developing countries - users of the unified system of tariff preferences of the EAEU, import customs duty rates are applied in the amount of 75 percent of the import customs duty rates of the EAEU Unified Customs Tariff.

At the same time, tariff benefits may be applied to goods imported into the customs territory of the EAEU in the form of exemption from import customs duties or a reduction in the import customs duty rate. Benefits in accordance with the EAEU Customs Code for the payment of customs duties mean:

  1. benefits for the payment of import customs duties (tariff benefits);
  2. benefits for payment of export customs duties;
  3. tax benefits;
  4. benefits for payment of customs duties (exemption from payment of customs duties).

Tariff benefits cannot be individual in nature and are applied regardless of the country of origin of the goods. Tariff benefits are provided in accordance with the Protocol on Unified Customs Tariff Regulation (Appendix No. 6 to the Treaty on the Eurasian Economic Union).

Customs benefits and tariff preferences are provided subject to the conditions established by regulatory documents; on the territory of the EAEU, the conditions and procedure for applying the unified system of tariff preferences are determined by the Decision of the Council of the Eurasian Economic Commission dated 06.04.2016 No. 47 “On approval of the Regulations on the conditions and procedure for applying the unified system of tariff preferences of the Eurasian economic union”.

The grounds for refusal to provide tariff preferences are established by Section VII of the Decision of the Council of the Eurasian Economic Commission dated June 14, 2018 No. 60 “On approval of the Rules for determining the origin of goods from developing and least developed countries”, according to which the customs authorities of the member states refuse to provide tariff preferences in relation to goods imported from the user country, in the following cases:

  1. the origin of the goods is considered unconfirmed;
  2. the stipulated conditions for the provision of tariff preferences are not met.

Despite the possible refusal of tariff preferences, the goods can still be released into free circulation, but in this case the foreign trade participant will have to pay the full amount of import customs duty.

Restoration of tariff preferences

The decision of the Council of the Eurasian Economic Commission dated February 22, 2019 No. 64 “On establishing cases and conditions for the restoration of tariff preferences” established cases when tariff preferences are restored in relation to those imported into the customs territory of the EAEU:

  1. when declaring goods at customs, the declarant did not declare tariff preferences;
  2. during the customs declaration of goods, the declarant declared tariff preferences, but based on the results of customs control before the release of goods by customs authorities, non-compliance with the conditions for granting tariff preferences was revealed;
  3. the release of goods was carried out by the customs authority using tariff preferences, but based on the results of customs control after the release of goods by the customs authorities, non-compliance with the conditions for granting tariff preferences in relation to such goods was revealed.

At the same time, tariff preferences are restored based on the results of customs control if the following conditions are met:

  1. the conditions for granting tariff preferences have been met in relation to goods;
  2. to the customs authority that released the goods, the declarant of such goods submitted:

– a reasoned request to make changes (additions) to the information stated in the declaration of goods;

– adjustment of the declaration of goods;

– certificate of origin of the goods;

– other documents confirming compliance with the conditions for the provision of tariff preferences;

  1. the appeal is registered by the customs authority no later than 12 months from the date of registration of the declaration for goods, and if the rules for determining the origin of imported goods determine a different period - no later than the last day of the period determined by such rules.

It is also important to note that tariff preferences are not restored if the customs authorities, based on the results of customs control, reveal that the certificate of origin of goods presented during the customs declaration of goods (and if this is provided for by the rules for determining the origin of imported goods – a document of origin of goods) is not genuine (falsified, forged).

Receiving customs benefits and tariff preferences allows participants in foreign economic activity to carry out trade activities on more favorable terms, however, customs authorities do not always provide such benefits and preferences, and therefore participants in foreign economic activity resort to such a method of protecting their rights and legitimate interests as appealing a refusal to providing preferences.

In accordance with Article 286 of the EAEU Labor Code, a decision, action (inaction) of customs authorities and their officials can be appealed to the customs authorities and (or) to court.

Appeal against refusal to provide preferences

Participants in foreign economic activity try to obtain established benefits and preferences, and refusal to receive them can significantly affect business activities in the foreign economic sphere. Often, the refusal of the customs authority to provide tariff preferences is associated, for example, with the following aspects:

  1. errors when issuing a certificate (additions, corrections, blots, etc.)
  2. there is no confirmation of the certificate being issued;
  3. other formal features.

Often, it can be quite difficult to independently understand all the intricacies of obtaining customs benefits, tariff preferences, restore the possibility of providing preferences to participants in foreign trade activities, or appeal the decision of the customs authority, and qualified lawyers who are able to competently and in accordance with current national and international legislation are involved in resolving such issues protect the interests of entrepreneurs.

Legal services

  1. Consulting on the application of customs benefits and tariff preferences
  2. Preparation of documents for appealing refusal to provide preferences
  3. Representation of interests in customs and judicial authorities in resolving disputes regarding the application of customs benefits and tariff preferences

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02.
Preliminary analysis and
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Conclusion of legal services agreement
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On each stage we inform you about results
06.
We provide the result and prepared documents
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