Advising on customs valuation and transfer pricing

The effect of new Russian transfer pricing (TP) regulations on customs valuation has been a popular topic of discussion recently. The customs valuation consequences of TP adjustments (i.e. price revisions in transactions between related parties) often cause disputes with the customs authorities. The TP mechanism should not be considered only from a corporate tax perspective, but also from a customs value perspective. We advise our clients on customs valuation issues related to TP, including justifying transfer prices to customs authorities, addressing adjustments of customs value, and much more. We also support our clients in disputes with the customs authorities on customs value adjustments, including litigation assistance.

Customs classification of goods

Customs classification is one of the most complicated customs issues. It not only requires general customs classification skills, but also often demands in-depth industry and/or product specific knowledge. Incorrect customs classification can open you up to significant customs exposures. Our customs team helps to identify the appropriate tariff code for goods, identify opportunities to save on duties using customs classifications, review the tariff codes assigned to goods by customs brokers, and apply for binding customs rulings. We as well provide support to our clients in disputes on customs classifications with the authorities.

Customs audits and compliance services

Recently, administrative penalties for breaching customs rules have increased substantially, especially for incorrectly declaring goods. In addition, the statute of limitation for violating customs rules has extended to two years. Our customs team can review your company’s import/export activities to identify customs exposures and opportunities to save customs duties.

Review of customs function

One of acknowledged ways for a company to mitigate potential customs exposures is setting effective internal customs compliance function. Our team can assist in setting up the respective customs compliance function or assess your company’s internal customs compliance controls and make recommendations on how to improve them.

Support in disputes with customs authorities

When negotiations with local customs authorities are not successful, appealing is often the only solution. Our team supports clients in appealing customs’ decisions to superior customs authorities and in court.

Country of origin

The origin of goods can present opportunities to save on duties, just as it can give rise to risk. We can assist on observing origin requirements, justifying the origin of goods (including goods produced in special economic zones in Russia) and applying for certificates of origin. Where necessary, we can also help you deal with the customs authorities on related matters.

Obtaining customs incentives

Customs law establishes a range of duty/VAT saving options. We provide advice and practical support on a wide range of duty saving options, including using beneficial customs procedures like processing customs procedures, temporary importation, free customs zone, and others.

Other services

The scope of potential customs issues is broad. Apart from those services listed above, we can also provide our clients with assistance on a variety of other customs and international trade matters. We can also help in arranging or improving a company’s activity on customs clearance of importation/exportation, including customs planning, review of foreign-trade agreements, choosing customs brokers, internal customs related procedures, and much more.