Customs and International Trade

Customs litigation and disputes

While conducting routine cross-border activities, our clients often face the need to resolve disputes with customs and other state authorities.

Practice shows that customs authorities may challenge a range of issues:

• Classification of goods in accordance with the Ukrainian Classifier of International Trade Goods, which drives the applicability of customs duty rates,  concessions and preferences, non-tariff regulation, restrictions and bans on movement of goods across the customs border of Ukraine
• Customs valuation of goods, which drives the level of customs charges
• Eligibility for special customs procedures and regimes
• Errors in declaring goods and preparation of shipment documents, which may give grounds for treatment as non-compliance with customs rules

We can provide the following assistance in representing our clients with customs authorities:

• Out-of-court settlement of disputes: challenging the resolutions of a customs authority on classification and customs valuation of goods
• Analysis of the customs authorities’ requests, audit reports, providing opinions on their relevance to the case
• Advice and assistance during negotiations and meetings with customs authorities
• Support and representation of the company with customs authorities during the issuance of a record of non-compliance with customs rules
• Drafting objections to audit reports, appeals and responses to the customs authorities
• Litigation (representation in court)
• Support in the process of customs audits
• Comprehensive representation of the company with state authorities of Ukraine in customs matters.

Authorised economic operator

We support our clients in the following areas in the process of applying for AEO status

• Development of a plan and roadmap for the application for AEO status
• Assessment of readiness and conformity with AEO criteria, identification of customs risks and development of recommendations
• Development/review of procedures and policies for conformity with AEO criteria
• Provision of recommendations on development of new documentation/procedures in accordance with AEO criteria, implementation, support in implementation
• Advisory support in completing self-assessment questionnaires, preparation for filing of self-assessment questionnaires
• Advisory assistance in customs assessment of conformity with AEO criteria, on-site customs authority visits and application for special simplified procedures
• Support in the process of assessment, assistance in drafting responses to written requests, involvement in meeting with customs authorities
• Support in application for special simplified procedures, preparation of reports to customs authorities

Brochure: Become the Authorised Economic Operator
Practical Guide: Authorized economic operator

Customs compliance

Managing and understanding the compliance requirements of customs authorities is a daunting mission for organisations of any size.

PwC experts can provide assistance in the following areas:

• Customs broker assessment of compliance with customs clearance requirements
• Customs advice/opinions on specific/complex issues
• Opinions on appropriate customs valuation and the classification of goods in accordance with the Ukrainian Classifier of International Trade Goods
• Analysis of the applicability of concessions and preferences in supplies of goods
• Applicability of individual customs procedures and regimes, special aspects of taxation
• Requirements for the application for permits, licences, certificates and resolutions for customs clearance and sales of goods, registration of the company with customs authorities
• Customs big data
• Customs review
• Advice on the application of Incoterms rules in cross-border trade contracts in order to mitigate risks for the company
• Delivery of training, seminars, workshops for the company’s employees on various customs, international trade and logistics matters
• Drafting cross-border sales, processing, rent, lease contracts, etc.
• Review and drafting templates of the shipping documents for supplies

Assessment of routine customs procedures and transactions

• Confirmation that the goods have been assigned an appropriate code in accordance with the Ukrainian Classifier of International Trade Goods with the appropriate customs duty rate for import declaring processes (some goods may meet the description of multiple goods codes, which may drive the declarers to declare goods at an inflated customs duty rate)
• Sample-based review of customs transactions (individual transactions in a year), in particular, we will review:
  • overall compliance in completing customs declarations;
  • approach to determining and declaring customs value, items deductible/assessable for customs valuation purposes, etc.
  • tariff classification, identification of the country of origin, applicability of customs duty rates and non-tariff regulation of specific goods
• Review of accounting treatment of selected transactions;
• Review of the procedures for retention of customs documentation and relationships with the customs broker

Integrated supply chain optimisation

In today’s challenging economic times, supply chains have been redefined and companies must place greater attention on their improvement and optimisation.

Business practices and operational costs may be significantly impacted by modern customs techniques such as:

• Proper implementation of specific customs regimes such as processing, lease, or temporary admission/export, export for repair/replacement;
• Workflow optimisations and customs broker management;
• Enjoying benefits from duty-free warehousing, electronic declaration, special simplified procedures.

We have advised both governmental and private institutions in order to:

• Identify cost saving opportunities by developing comprehensive solutions for efficient import and export operations, logistics processes and restructuring of operations;
• Improve customs operations efficiency by auditing and re-engineering business processes.

Customs and taxes:

• Advice on customs and tax legislation in Ukraine and the EU;
• Royalty and licensing fees;
• Structuring of foreign operations from the customs and tax perspectives;
• Practical assistance for the implementation of new import and export operations, including:
  • drafting foreign trade contracts and documentation,
  • receiving permits and certificates,
  • negotiating with the customs authorities if a problem occurs, and assistance during the appeal procedure.

Regulatory aspects:

• Consulting on:
  • protection and use of intellectual property rights,
  • royalty and licensing fees;
  • impact analysis of antitrust and corruption legislation,
  • analysis of corporate law, including legal presence in overseas markets;
• Trade dispute resolution - antidumping investigations
• Support of public procurement.