How to Appeal Customs Classification?

Legal representation in litigation cases of customs classification of goods

legal support under the law of the eurasian economic union

Customs classification of goods is a prerequisite for conducting foreign trade and is carried out during customs declaration and in other cases when, in accordance with international treaties and acts on customs regulation, the product code is declared to the customs authority in accordance with the Commodity Nomenclature of Foreign Economic Activity.

Classification of goods is necessary for applying customs tariff regulation measures, determining export customs duties, prohibitions and restrictions, measures to protect the domestic market, and maintaining customs statistics. Further actions on customs regulation depend on the correct classification of goods: customs duties, taxation of goods, etc. Incorrect classification leads to adverse consequences for a participant in foreign economic activity, for example, additional customs duties and prosecution.

If an incorrect classification of goods is detected during their customs declaration, the customs authority carries out the classification of goods both before and after their release, this is provided for in Article 20 of the EAEU Customs Code.

Considering that the declarant carries out the classification of goods independently and the classification of goods does not always coincide with the classification determined by the customs authority, controversial issues arise between participants in foreign economic activity and customs authorities. Disputes between declarants and customs authorities include:

  1. challenging decisions on the classification of goods (or preliminary decisions on the classification of goods) of customs authorities;
  2. challenging the demands of customs authorities to pay customs duties;
  3. challenging a decision to refuse the release of goods;
  4. decisions of customs on bringing to administrative liability for non-declaration or false declaration of goods.

In 2019, the Federal Customs Service conducted an analysis of judicial practice in cases of challenging decisions of customs authorities on the classification of goods and identified two reasons why decisions of customs authorities are considered unlawful:

  1. insufficient validity of the customs expert’s conclusions;
  2. incompleteness of the customs expert’s conclusions.

Appeal against the customs classification

Article 285 of the Federal Law No. 289-FZ dated 03.08.2018 “On customs regulation in the Russian Federation and on amendments to certain legislative acts of the Russian Federation” (hereinafter referred to as “Law No. 289-FZ”, “Law on Customs Regulation”) stipulates that any person has the right to appeal a decision, action (inaction) of a customs authority and its official, if such a decision, action (inaction), in the opinion of this person, violated his rights, freedoms or legitimate interests, created obstacles for him to realize them or illegally entrusted him any duty. The decision, action (inaction) of customs authorities and their officials may be appealed to the customs authorities and (or) to the court.

When filing a complaint with the customs authorities, the complaint is considered by a higher customs authority. Order of the Federal Customs Service of Russia dated December 29, 2020 No. 1163 “On approval of the Procedure for actions of customs officials when considering complaints against decisions, actions (inaction) of customs authorities and their officials” defines the procedure for actions by a customs officer when considering complaints.

In accordance with Article 289 of the Law on Customs Regulation, a complaint can be filed within 3 months:

  1. from the day when the person became aware or should have become aware of the violation of his rights, freedoms or legitimate interests, the creation of obstacles to their implementation, or the illegal imposition of any obligation on him;
  2. from the date of expiration of the period for the customs authority to make a decision or perform an action established by international treaties and acts in the field of customs regulation, the legislation of the Russian Federation on customs regulation.

If the deadline for appealing an action (inaction) is missed, the specified period can be restored at the request of the applicant if the customs authority recognizes the reason for such omission as valid.

The complaint is submitted to the customs authority in writing and must be signed by the applicant or his representative.

  1. name of the customs authority whose decision, action (inaction) is being appealed;
  2. last name, first name, patronymic (if any), place of residence of the individual or name of the legal entity filing the complaint, taxpayer identification number, his location;
  3. the essence of the appealed decision, action (inaction);
  4. the grounds on which the person filing the complaint believes that his rights have been violated.

The customs authority refuses to consider the complaint on the merits in whole or in part if any of the following grounds exist:

  1. there is a decision made by the customs authority or a higher customs authority on the same subject of the complaint;
  2. the established deadlines for appeal were not met and the applicant did not file a petition to restore the deadline for appeal, or the customs authority rejected such a petition;
  3. the decision, action (inaction) of the customs authority and (or) circumstances to be established by the customs authority in connection with the consideration of the complaint are the subject of consideration by the court;
  4. the complaint was filed by a person whose rights, freedoms or legitimate interests were not affected by the appealed decision, action (inaction);
  5. there is no subject of appeal (the fact that the customs authority made a decision or committed an action (inaction) was not confirmed);
  6. failure by the applicant to comply with the established requirements for the form and content of the complaint;
  7. the applicant has not submitted the required documents confirming the authority of the person filing the complaint.

At the same time, the applicant can withdraw the complaint at any time before a decision is made on the merits by the customs authority considering the complaint. At the same time, withdrawal of the complaint prevents the re-submission of a complaint about the same subject to the customs authority.

A complaint against a decision made by the federal executive body exercising control and supervision functions in the field of customs affairs, as well as against an action (inaction) committed, is filed with the court. Appealing decisions, actions (inaction) of the customs authority in court is regulated by the procedural legislation of the Russian Federation.

It is important to note that appealing decisions on the classification of goods to the customs authority is carried out in a shorter period of time than court proceedings, despite the fact that often a legal dispute can be considered in several instances.

Legal services

  1. Consulting on the classification of goods according to the EAEU Commodity Nomenclature for Foreign Economic Activity
  2. Preparation of the necessary documents to support the classification of goods according to the Commodity Nomenclature of Foreign Economic Activity
  3. Appealing the decision of the customs on the classification
  4. Representation in litigation cases on appealing the classification decisions
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