Preliminary Customs Classification Decision
Legal support for obtaining a preliminary decision on customs classification
International trade and increasing trade turnover allow consumers to obtain all the goods they need, and suppliers to satisfy consumer demand. At the same time, a large number of different goods, crossing state borders, undergo customs clearance associated with the classification of goods, on which all further customs procedures depend.
Paragraph 1 of Article 14 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”) establishes, that for the classification of goods for the purpose of applying customs tariff regulation measures, export customs duties, prohibitions and restrictions, measures to protect the domestic market, and maintaining customs statistics in the Russian Federation, the unified Commodity Nomenclature for Foreign Economic Activity of the Eurasian Economic Union (hereinafter referred to as the “TN FEA”) is used. The commodity nomenclature of foreign economic activity is used for the purpose of taxation of goods transported across the customs border of the EAEU.
Article 20 of the Customs Code of the EAEU determines that the declarant and other persons classify goods in accordance with the Commodity Nomenclature of Foreign Economic Activity during customs declaration and in other cases when, in accordance with international treaties and acts in the field of customs regulation, the product code is declared to the customs authority. At the same time, at the request of persons, customs authorities can classify goods before their customs declaration by making preliminary decisions on classification (hereinafter referred to as “PCD”) of goods in accordance with the Commodity Nomenclature of Foreign Economic Activity and decisions on the classification of goods transported across the customs border of the EAEU unassembled or disassembled, including incomplete or unfinished form. The list of goods in unassembled or disassembled form, including incomplete or unfinished form, in respect of which customs authorities make decisions on the classification of goods for the purpose of customs declaration, is determined by the Decision of the Board of the Eurasian Economic Commission dated 04/03/2018 No. 45 “On approval of the list of goods, in respect of which customs authorities make decisions on the classification of goods transported across the customs border of the Eurasian Economic Union in unassembled or disassembled form, including incomplete or unfinished form.”
Obtaining a preliminary classification decision
A preliminary decision on the classification of goods is made by the customs authorities determined by the legislation of the Member States on customs regulation of the Member State in which the goods will be released when they are placed under the customs procedure, with the exception of the customs procedure of customs transit. PCD is accepted for each product name, including a specific brand, model, article number and modification.
The form of the preliminary decision on the classification of goods, the procedure for filling it out and making changes (additions) to such a preliminary decision on the classification of goods was approved by the Decision of the Board of the Eurasian Economic Commission dated April 17, 2018 No. 58 “On approval of the form of the preliminary decision on the classification of goods, the procedure for filling it out and making it changes (additions) to such a preliminary decision”.
The PCD is accepted by the customs authority on the basis of a person’s application submitted in the form of an electronic document or a document on paper. An application for a preliminary decision on the classification of goods must contain the full commercial name, trade name (trademark), basic technical and commercial characteristics of the goods and other information that allows the goods to be unambiguously classified. If necessary, samples and (or) samples of goods, photographs, drawings, drawings, product passports and other documents necessary to make a preliminary decision on the classification of goods are submitted. If the information provided by the applicant is not enough to make a preliminary decision on the classification of goods, the customs authority, no later than 30 calendar days from the date of registration with the customs authority of the application for a preliminary decision on the classification of goods, sends the applicant a request for the need to provide additional information. The form of notification of the need to provide additional information is defined in Order of the Federal Customs Service of Russia dated 02/07/2019 No. 205 “On approval of forms and procedures for filling out paper documents used when making a preliminary decision on the classification of goods in accordance with the unified Commodity Nomenclature of Foreign Economic Activity of the Eurasian Economic Union, upon revocation of such a decision and termination of its validity, as well as forms of notification of the need to provide additional information”.
Article 25 of the EAEU Customs Code establishes that a preliminary decision on the classification of goods is made no later than 90 calendar days from the date of registration by the customs authority of an application for a preliminary decision on the classification of goods. At the same time, a preliminary decision on the classification of goods is made within 60 calendar days from the date of registration by the authorized customs authority of the application for a preliminary decision on the classification of goods.
The PCD in accordance with the EAEU Customs Code of the goods is valid for 3 years from the date of its adoption, unless the legislation of the Member States on customs regulation establishes a longer validity period for the preliminary decision on the classification of goods. In Russia, in accordance with the Law on Customs Regulation, a preliminary decision on the classification of goods is valid for 5 years from the date of its adoption.
The authorized customs authority refuses to make a preliminary decision on the classification of goods in the following cases:
- if the applicant was previously issued a preliminary decision for the same product that is indicated (described) in the application for a preliminary decision, except if the previously issued preliminary decision expires within sixty days from the date of registration of the application for a preliminary decision;
- if additional information requested by the authorized customs authority is not provided within the prescribed period or is not provided in full;
- if the application for a preliminary decision on the classification of goods, the documents attached to it, and the additional information provided, requested by the authorized customs authority, contains conflicting information.
If the PCD is lost by the person who received it, that person is issued a duplicate of such a preliminary decision on the classification of the goods.
Among other things, a preliminary classification decision can be revoked by the authorized customs authority and comes into force from the day such a decision is made.
Despite the procedure for obtaining a PCD established by law, participants in foreign economic activity often turn to the judicial authorities due to disagreement with the decision made by the customs authority. The reason for going to court may be, for example, a refusal to receive a PCD.
Interaction with customs authorities requires special attention and scrupulous paperwork from participants in foreign economic activity. Compliance of the documents drawn up with the current legislation allows you to avoid undesirable consequences in the form of additional customs duties in case of incorrect classification of goods. A thorough study of the issue of customs clearance can be achieved with the help of qualified lawyers who have not only theoretical knowledge, but practical experience in interacting with customs authorities.
Legal services
- Consulting services on obtaining a customs classification decision
- Preparation of documents required to obtain a preliminary classification decision
- Legal support of the process of obtaining a classification decision
- Interaction with customs authorities upon receipt of a customs classification decision
- Challenging the decision of the customs authority to refuse to obtain a preliminary classification decision
