The Taxology lawyers got administrative charges overturned.
Based on desktop customs audit results, the customs authority came to the conclusion that license royalty for an intellectual property item was not included in the goods’ customs commodity cost. The customs value was recalculated. The importing company was charged additional taxes. The company agreed with the desktop customs audit results and didn’t challenge the decision on additional customs duties. Based on the customs audit results, the customs authority initiated an administrative offence case in accordance with Section 2 Article 16.2 of the Administrative Violations Code (“Doubtful Declaring”) and imposed an administrative fine on the importer’s customs broker in the amount of the extra customs duties.
The Taxology experts concluded that the customs broker is innocent in this administrative violation and recommended appealing against this administrative fine in court even though the import company had agreed with the customs authority’s decision on the additional customs duties.
Based on the legal investigation results, the arbitration court agreed with the position presented by the Taxology lawyers and recognized the decision of the customs authority as illegal and canceled it. In addition, the court was presented with a draft judicial act on this case, which served as the reasoning part of the judgment for the court.
Alexei Sizov and Denis Sidorenkov were providing legal services on this case.