Introduction: Importance of Customs Disputes for Business
Georgia, as a regional transit and logistics hub, is actively involved in international trade. Along with the growth of imports and exports, the frequency of interactions with customs authorities increases, and consequently, the number of disputes. Customs Appeals represent a legal mechanism through which businesses can defend their rights against unlawful decisions by the Customs Department. Often, incorrect classification of goods by a customs officer, artificial inflation of customs value, or imposition of baseless fines causes enormous financial losses to businesses. In this process, qualified legal and tax assistance is critically important, as customs disputes require deep knowledge not only of legislation but also of specific procedures and commodity nomenclature. Timely appeal is often the only way to release cargo and avoid unnecessary costs.
What Does Customs Appeals Service Cover?
Customs appeals service is a complex process covering all stages of a dispute—from administrative appeal to litigation. Specialists offer:
- Analysis of Customs Decisions: Checking the legal validity of import tax assessments, fine protocols, or refusals to clear goods.
- Defense of HS Code Classification: Collecting evidence and arguing that the company assigned the correct commodity code to the products.
- Appealing Customs Valuation: Disputing the use of so-called "methods" when customs refuses to accept the invoice price (Method 1) and uses backup methods to increase the value.
- Disputes Related to Certificates of Origin: Defending the right to use preferential tax regimes (e.g., EUR.1).
- Preparation of Administrative Complaint: Drafting and submitting a complaint to the Dispute Resolution Council of the Revenue Service.
- Representation at the Ministry of Finance Council: Defending interests at the second stage of the dispute at the Dispute Resolution Council under the Ministry of Finance of Georgia.
- Litigation: Preparing lawsuits and representation in common courts demanding the annulment of customs decisions.
Common Situations and Scenarios
One of the most common scenarios is the adjustment of customs value. For example, an importer brings auto parts from China and presents an invoice where the value is $10,000. The customs officer questions this price, cites their database, and determines that the value should be $15,000, thus demanding payment of more VAT and import tax. A second scenario concerns the commodity code (HS Code): a company imports vitamins, assigning a code with a 0% rate, while customs believes it is a food supplement with a 12% rate and fines the company for the difference. A third case involves cargo detention or seizure due to suspicion of intellectual property rights violation, which is also subject to appeal.
Georgian Legal Framework
Customs disputes are regulated by the Tax Code of Georgia (specifically the chapters on customs procedures and dispute resolution) and the General Administrative Code of Georgia. The Tax Code defines a two-stage appeal system within the administrative body: First stage—Revenue Service; Second stage—Dispute Resolution Council of the Ministry of Finance. Also important are the Orders of the Minister of Finance regarding goods clearance procedures and determination of customs value. Court proceedings are conducted in accordance with the Administrative Procedure Code of Georgia. Legislation grants the taxpayer the right to appeal any act that violates their legitimate interest.
Process: How is an Appeal Conducted?
The process begins with filing a complaint within 30 days of receiving the disputed act. In the first stage, the specialist prepares a substantiated complaint and submits it to the Revenue Service. The dispute hearing is attended by a company representative who presents arguments and evidence (expert conclusions, manufacturer letters, contracts). If the Revenue Service's decision is negative, the case is appealed to the Ministry of Finance Council. If the Council also does not satisfy the request, the dispute moves to court. It is important to know that filing a complaint does not automatically suspend the obligation to pay the tax, although there are legal mechanisms to suspend enforcement.
Why Choose a Specialist on Legal.ge?
Customs disputes require specific knowledge that general profile lawyers often do not possess. On Legal.ge, you will find specialists who have years of experience working in the customs system or handling customs disputes. Our platform's experts will help you choose the right strategy, obtain evidence, and effectively defend your business interests before the state. Do not leave your cargo and finances at risk—contact professionals.
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