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Customs valuation disputes

Updated: November 2026
 
Customs valuation disputes are among the most common customs disputes in Ukraine. Most often, the customs authority does not accept the price declared by the importer and determines the value using another method, usually the fallback method. As a result, import duty and VAT increase and the goods are held at customs. Since 2024, post-clearance documentary audits have been added, with additional assessments arriving after the goods have been cleared.
 
For foreign exporters, this matters directly: a customs adjustment raises the landed cost for the Ukrainian buyer and often leads to requests to revise prices or documents.
 
Legal framework
The rules on determining and controlling customs value are set out in Chapter 8 of the Customs Code of Ukraine (in Ukrainian), Articles 49–58. A new Customs Code harmonised with EU law is still at the draft stage. Its entry into force is planned no earlier than December 2027, so disputes are resolved under the current Code.
 
Customs valuation methods
The primary method is the transaction value, the price actually paid or payable for the goods (Article 58 of the Customs Code of Ukraine, in Ukrainian). Secondary methods apply in sequence and only where the value cannot be determined on the basis of the transaction value (Article 57 of the Customs Code of Ukraine, in Ukrainian):
  • transaction value of identical goods;
  • transaction value of similar goods;
  • deductive value;
  • computed value;
  • fallback method.
Moving to the next method is permitted only after the impossibility of applying the previous one has been substantiated. Breach of this sequence is the most frequent reason courts annul customs decisions.
 
How a dispute arises
The importer declares the value on the basis of the transaction value and submits the documents listed in Article 53 of the Customs Code of Ukraine (in Ukrainian): the foreign trade contract, invoice, payment and transport documents, insurance documents and specifications.
 
If the customs authority has doubts, for example where the price is lower than the data in its automated risk management system, it may request additional documents. Their exhaustive list is also set out in Article 53. The customs authority then issues a decision adjusting the customs value.
 
A comparison with a price database is not in itself a ground for adjustment. The customs authority must specify which information in the declarant’s documents is inaccurate or inconsistent.
 
The outcome of the dispute depends on the completeness and consistency of the documents. Customs authorities rely primarily on discrepancies in the description of goods, delivery terms or payment details between the contract, the invoice and the declaration.
 
Release of goods
An adjustment decision does not mean the goods will remain at customs. The importer may release them for free circulation by paying customs duties on the adjusted value or by providing a financial guarantee for the difference. Paying on the adjusted value does not forfeit the right to appeal: once the decision is annulled, the overpaid amount is refunded.
 
Challenging the decision
The decision may be challenged administratively or in court. In practice, court proceedings are considerably more effective: customs authorities often fail to prove that the declarant’s documents are inaccurate or that the primary method could not be applied.
 
A claim is filed with an administrative court, as a rule within six months of the decision. The claim seeks annulment of the customs value adjustment decision and the refusal card for the customs declaration. The amount in dispute is the difference between the duties calculated by the declarant and by the customs authority.
 
Post-clearance audits
After a pause from March 2022, the State Customs Service resumed documentary audits in May 2024. In 2025 alone, these audits resulted in more than three thousand tax assessment notices totalling around UAH 2.5 billion. Such audits cover transactions for three years, so documents on customs value should be kept and organised with a possible audit in mind. Tax assessment notices issued by customs authorities may be challenged administratively or in court.
 
Our services
  • Reviewing the importer’s customs value documents before clearance and preparing responses to customs requests.
  • Supporting the release of goods in the event of an adjustment, including against a financial guarantee.
  • Challenging customs value adjustment decisions and refusal cards administratively and in court.
  • Recovering overpaid customs duties.
  • Supporting post-clearance documentary audits and challenging tax assessment notices issued by customs authorities.