How a Customs Authority Decides on an Application
Article 16 of the Customs Code governs the way a customs authority adopts a decision on the application of Georgian customs legislation, submitted by a person or a group of persons. The applicant must provide the authority with any information required for the adoption of the decision. The authority, for its part, must verify whether the conditions for accepting the application into proceedings are met, without delay but no later than 30 days from receipt of the application, and, where the conditions are satisfied, notify the applicant within the same period that the application has been accepted into proceedings.
The decision itself must be adopted without delay, but no later than 120 days from the acceptance of the application into proceedings. If the authority cannot meet that deadline, it must inform the applicant before the period expires, indicate the relevant reason and set a new deadline for the decision, which may not exceed 30 days unless Georgian customs legislation provides otherwise. At the applicant's request, the deadline may also be extended for the purpose of correcting the information the applicant has submitted, and in that case the applicant must communicate the details of the correction and the time needed for it.
Entry Into Force and the Applicant's Procedural Guarantees
The decision enters into force on the day it is delivered to the applicant and remains in force indefinitely, unless Georgian customs legislation or the decision itself provides otherwise. From the date of its entry into force, execution of the decision is mandatory for the customs authority. Where a decision may negatively affect the applicant, the authority must, before adopting it, communicate its content and justification, and give the applicant the opportunity to present arguments within the period set by the authority. Such a decision must be substantiated and must indicate the right to appeal under the procedure established by the Code.
The requirement of prior communication with the applicant does not apply to the issuance of the preliminary decision provided for by the Code. Nor does it apply where the interests of protecting the state and its population, human or animal health, plant health, the environment or consumer safety so require; where the purpose of the decision is to facilitate the execution of another decision; where the interests of a criminal investigation or of customs offence proceedings might be harmed; and in other special cases defined by the legislation.
Challenging a Customs Decision: Ministry and Court
A decision adopted by a customs authority on the basis of the Code may be appealed either within the system of the Ministry of Finance of Georgia or in court. Within the Ministry's system, a customs dispute is examined under the procedure established by the Georgian Tax Code for the consideration of tax disputes, unless the Customs Code provides otherwise. At any stage of the consideration of the dispute within the Ministry's system, the complainant may apply to a court, and court proceedings are governed by the administrative procedural legislation of Georgia.
As a general rule, filing an appeal does not suspend the operation of the contested decision. Nevertheless, the customs authority or the body examining the dispute must suspend the execution of the appealed decision, fully or partially, where a substantiated suspicion exists that the decision contradicts Georgian customs legislation or that its execution would cause irreparable damage to the person concerned. In addition, an appealed decision that creates an obligation to pay import duties or a customs sanction is, as regards that payment, deemed suspended from the day the dispute begins until it ends. During the dispute, the limitation period established by the Code is suspended, while the execution of a decision of a court or of the dispute examination body by the customs authority proceeds without applying that period.
Frequently Asked Questions
Within how many days must the customs authority adopt its decision?
No later than 120 days from the acceptance of the application into proceedings. If the deadline is missed, the authority must announce the reason and a new deadline not exceeding 30 days.
Where can a customs decision be appealed?
In the system of the Ministry of Finance or in court. At any stage of the administrative consideration of the dispute, the complainant may take the matter directly to court.
Does an appeal suspend the execution of the decision?
As a general rule it does not. Yet where a substantiated suspicion of a contradiction with the legislation or of irreparable damage exists, the authority must suspend execution, and in the part concerning import duties and customs sanctions the decision is suspended for the whole duration of the dispute.
What guarantees does an applicant have against an unfavourable decision?
Where a decision may negatively affect the applicant, the authority must communicate its content and justification in advance and allow arguments to be submitted; the decision itself must be substantiated and indicate the right of appeal.
How We Help on Legal.ge
The specialists of Legal.ge help you prepare a customs application, assess whether a decision is well founded, choose the correct route of appeal and conduct the dispute both within the Ministry of Finance system and in court. Contact us: we will evaluate your situation, plan the argumentation, keep track of the statutory deadlines and help you avoid mistakes that could cost you the dispute at the procedural stage.