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Ilyashev & Partners Protects Interests of Foreign Machinery Company in Customs Dispute

News date: 12 February 2024

One of the largest Turkish machinery companies was successfully represented by Ilyashev & Partners Law Firm in court against the Chernivtsi Customs Office.

Chernivtsi Customs Office filed a lawsuit alleging a foreign company director violated customs regulations by presenting documents containing false information about the weight and value of goods moving across the Ukrainian customs border.

During the hearing of the case, Ilyashev & Partners Law Firm substantiated that the actions of the foreign company director did not constitute an administrative offense, arguing that the difference in price and weight of the goods described in the customs declarations was due to differences in customs formalities between the two countries – Ukraine and Turkey.

Ilyashev & Partners Law Firm presented evidence in court that the foreign company director did not intend to hide the goods, since the goods were delivered in the same volume and for the same amount as stipulated in the concluded contract. Furthermore, since the goods were delivered according to the contract, the Ukrainian budget did not lose any mandatory customs payments.

Customs failed to prove in court that the goods were delivered for a different amount, less than the contract amount, which would result in a reduction in customs duties.

The Chernivtsi City District Court accepted the well-supported position of Ilyashev & Partners’ lawyers and closed the case. The goods were returned to the owner for customs clearance.

The Chernivtsi Customs Office of the State Customs Service, disagreeing with the decision of the Court of First Instance, filed an appeal with the Court of Appeals. The Chernivtsi Oblast Court of Appeals upheld the decision of the Chernivtsi City District Court and rejected customs’ claims in full. The decision of the Chernivtsi Oblast Court of Appeals is final and is not subject to appeal.

The project was handled by Alina Borovets, Attorney at Law at Ilyashev & Partners.