Our advocate bureau’s client exported metal products abroad and, during customs declaration, reported an incorrect value for the goods. Two years after the declaration, the customs value of the goods was adjusted, and the client was charged penalties in the amount of 5.5 million rubles for late payment of customs duties. Following the decision on the adjustment, the customs authorities refunded the previously underpaid duties to the client and re-collected the duties in full. When calculating the penalties, the customs authority based the calculation on the full amount of customs duties assessed after the value adjustment, accruing penalties for the entire period.
Our advocate bureau filed a claim with the Arbitration Court of Saint Petersburg and the Leningrad Region to protect the client’s rights. In the statement of claim, it was argued that penalties should not be imposed on the portion of customs duties originally paid into the budget and subsequently refunded to the client by customs authorities, as there was no late payment on those amounts. The court agreed with our arguments and granted the claim to recover excessively collected penalties from the customs authority in the amount of 3.5 million rubles. The appellate court upheld the decision of the lower court, making some adjustments to the calculation of the amounts to be refunded. The customs authority did not appeal to higher judicial instances.
