News Arno

Defense in three court instances of the declared customs value, confirming the right to deduct transportation expenses from the customs value when concluding agreement with a freight forwarder

Our legal team defended importer's right to deduct transportation costs from the customs value of the goods (the “TC”) while customs held that transportation costs must be stated separately in invoices for transportation services to freight forwarders by third parties (carriers) (case A40-86591/22-93-641).

Goods were imported on Incoterms-2020 EXW and FCA terms, determining the TC by the transaction value method.

On customs declaration expenses for transportation of goods to the place of their arrival in the customs territory of the Union were declared on the basis of freight forwarding agreements.

During customs inspection after the release of goods, customs identified that freight forwarders had engaged third party carriers for delivery. Invoices for transportation from the actual carriers were received with a single amount for the entire itinerary from point of loading abroad to the place of unloading in the territory of the Union.

Courts ruled that the declarant, neither due to commercial practice, nor due to the norms of the customs legislation, could have received documents of foreign carriers in such structure as would allow identifying the cost of transportation before and after goods’ entry on the territory of the Union.