On October 2, the Chamber Customs Committee Co-Chairs Mr. Igor Dankov, EY and Ms. Oksana Drozach, PwCtook part in the meeting devoted to application of the CMU Resolution #724 “On Use of Risk Management System Benchmarks on Customs Value” with representatives of the State Fiscal Service of Ukraine Mr. Mykhaylo Ivanyuk, Head of Department of Administration of Customs Duties and Customs Tariff Regulation, Mr. Serhii Siomka, Head of Customs Control and Clearance Organization Department and Mr. Mykhailo Dmytriev, Head of Risk Analysis Department.
The event was aimed at considering reasons for adopting aforementioned Resolution above as well as vision of the business community on its implementation.
While discussing international approach on maintaining databases, Mr. Igor Dankov highlighted the World Customs Organisation Recommendations on these matters. The process should be determined in the context of the range of officials responsible for maintaining the domestic pricing base, mechanism of calculation of the benchmarks, audits of the correct application of benchmarks during the customs control including responsibility of officials for the violations, which were found, reforming the control of correctness of the customs value.
The meeting attendees also admitted a huge importance of strong knowledge of customs officers to make right decisions based on requirements of the Customs Code of Ukraine.
Representatives of the State Fiscal Service of Ukraine stressed that information on benchmarks should be applied only for risk analysis purposes. This approach was communicated directly to heads of local customs offices. Mr. Igor Dankov commented that customs inspectors should have detailed written instructions, based on WCO guidelines for using the benchmarks. Specifically, these benchmarks should not replace the customs value. During risk analysis customs officials should analyse price information and substantiate their decisions taken based on risk analysis results. It was stressed that the problem was not in introduction of benchmarks but in their incorrect use by customs officials or the lack of information on how to use them. The effective risk analysis system should facilitate customs clearance for bona fide importers and create serious difficulties for black and grey importers.
Also, there is an initiative to introduce a separate “hot line” for problematic issues related to implementation of the Resolution above. It was also recommended, in case of any difficulties to address respective requests to the heads of local customs offices who were specifically instructed to answer all questions and quickly deal with issues. If, for any reasons, the decisions cannot be taken at that level they should be escalated to the Head of Department of Administration of Customs Duties and Customs Tariff Regulation of the State Fiscal Service of Ukraine.
Thus, we would like to encourage all interested Chamber Members to share with us information regarding difficulties with application of the Resolution #724 , to be generalized and provided to the State Fiscal Service of Ukraine.
The State Fiscal Service of Ukraine representatives also informed that they prepared amendments to the Customs Code of Ukraine on customs valuation and encouraged the business community to provide its vision of provisions that should be improved to streamline the customs valuation process.
If you would like to get involved in the Chamber Customs Committee activities and participate in further meetings, please contact Oleksandr Prokhorovych, Chamber Policy Officer (Tax & Customs Issues).