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Your power to winRestoration of preferential treatment
Preferential treatment is a special favourable regime of foreign economic cooperation granted by one state to another without extending it to “third countries”.
A preferential agreement is signed between two or more countries to simplify international trade between them by reducing internal tariffs. In such cases, a country sets preferential customs tariffs on the same goods for trade within the preferential trade zone and ordinary tariffs for trade with all other countries.
Since 1 January 2016, trade between Ukraine and the EU has been governed by Title IV “Trade and Trade-related Matters” of the EU–Ukraine Association Agreement, and since 1 September 2017 the Association Agreement has been in force in full.
To benefit from preferences under free trade between Ukraine and the EU, goods must originate in the EU and meet the rules of origin set out in Protocol I to the Association Agreement.
A declarant who submits an EUR.1 certificate of origin to the customs authority is entitled to the restoration of preferential treatment (free trade).
The procedure for refunding amounts paid by mistake or in excess is set out in the Customs Code of Ukraine, the Tax Code of Ukraine and Procedure No. 643 for the refund of advance payments (prepayments) and of customs payments paid by mistake and/or in excess.
The attorneys of our firm will provide detailed written advice on any questions that may arise regarding the restoration of preferential treatment, the refund of amounts paid by mistake or in excess, and other customs matters.
Tracking current case law in customs disputes and many years of experience in applying customs legislation allow us to effectively challenge unlawful actions and decisions of customs authorities in court. In addition, once a court decision becomes final, our attorneys support the process of returning to the client the funds paid as a result of the customs authority’s groundless decision.
representing the client in courts of all instances;
appealing decisions related to the restoration of the free trade regime (preferential treatment);
appealing decisions, actions or inaction of customs authorities concerning the classification of goods under the UKT ZED;
appealing decisions, actions or inaction of a customs authority to obtain a refund of customs payments paid to the budget by mistake or in excess;
drafting requests, complaints, applications and other legal documents to settle a customs dispute;
drafting requests, complaints, applications and other legal documents to settle a customs dispute;
written advice to clients on preferential treatment.
It is attorneys who can most effectively protect the client’s interests in cases of customs violations. Therefore, once proceedings in a customs violation case are opened, which happens when a customs violation report is drawn up, it is best to seek an attorney’s help, as attempts to defend yourself will most likely lead to a negative result for you.
To restore preferential treatment, the declarant must submit to the customs authority an application for the restoration of preferential treatment and the refund of funds, together with the customs declaration under which the goods were imported and an EUR.1 certificate in the prescribed form.
It is better to spend time at the stage of consultations between the customs authority and the declarant and to prepare and file an appropriate application, which the customs authority will either grant or answer with a written explanation of the reasons for refusing to restore preferential treatment; that explanation will serve as evidence when the customs authority’s unlawful actions are challenged in court.
Remember also that the customs authority’s grounds for refusing to restore preferential treatment or to refund funds paid by mistake or in excess must be justified, with reference to the provisions of current legislation.
When goods are moved across the customs border of Ukraine, the country of origin must be declared by stating in the customs declaration the name of the country of origin and the details of the certificate of origin for goods to which preferential import duty rates apply.
If the import of goods is subject to anti-dumping, countervailing or special measures, tariff benefits (tariff preferences) are not granted, or are suspended or terminated, unless otherwise provided by international treaties ratified by the Verkhovna Rada of Ukraine.
Disputes over preferential treatment are heard by customs authorities in an administrative (pre-trial) procedure and by administrative courts. A case is heard at the location of the customs authority or the official who considered the disputed matter. The jurisdiction over such cases is set by the Customs Code of Ukraine.
Under Article 301 of the Customs Code of Ukraine, customs payments paid by mistake or in excess are refunded in accordance with the Budget and Tax Codes of Ukraine and Procedure No. 643.
A mandatory condition for the refund of amounts of a monetary obligation is that the taxpayer files an application for such a refund with the customs authority within 1095 days of the date of the erroneous or excessive payment.