Daria Vlasenko, Candidate of Law

"WHAT IF WE DESIGNED SOMETHING WRONG OURSELVES?.. IS IT TOO LATE NOW?"

This is one of the most frequent thoughts after the release of goods. The declaration has been submitted, the goods have been released, the delivery has been completed, but there is a feeling that something is wrong somewhere in the documents or in the logic of the transaction. In practice, it is at this point that many participants in foreign economic activity choose not to check anything, hoping that if the issue has taken place, then there are no serious risks. However, it is important to remember about customs control after the release of goods, so it is better to assess your risks before receiving a request from the customs authority.

Let's look at what you need to look at first.

I. Verify the main documents of the transaction
At the first stage, it is necessary to check whether they match each other.:
• terms of the foreign trade contract,
• invoice information,
• payment documents,
• transport and shipping documents,
• information stated in the goods declaration.

Special attention should be paid to:
• product name,
• quantity,
• Terms of delivery,
• price structure,
• the payee,
• availability of additional agreements.

Even minor discrepancies between documents can later be perceived as a sign of unreliability of information.

II. Check the logic of pricing
The next question is whether it is clear from the documents exactly how the declared customs value is formed.

There are several questions that need to be answered:
• does the stated value correspond to the price actually paid or payable?
• were there discounts, bonuses, compensations, royalties, agency payments?
• are there any payments in favor of third parties?
• are additional costs included in the price?
• has the price changed after signing the contract?
The logic of forming the transaction value should be transparent and documented.

III. Collect evidence of the economic validity of the transaction
If the company has internal doubts about the transaction, this is already a sufficient signal to collect an evidence base in advance.
Depending on the situation, these may be:
• correspondence with the counterparty about the price agreement,
• price lists,
• commercial offers,
• information about the market price level,
• documents on the subsequent sale of goods.

The task here is not to "prepare for a dispute," but to close weaknesses in advance that may raise control issues.

Practical conclusion
The internal express audit of the transaction after the release of goods includes, in fact, three steps:
1. Verify the contract, invoice, payments and declaration.
2. Check whether the logic of price formation is clear.
3. Collect documents confirming the economic validity of the transaction.

It is better to identify a weak point on your own than to wait for the customs authority to identify it.