Lawyers Successfully Act for Global 500 Crop Science Company in Large-Scale Customs Value Dispute

  • Dispute Resolution

Marchenko Danevych represented a Fortune 500 company engaged in the manufacturing of crop sciences products in large-scale domestic litigations and high level negotiations with the Ukrainian Customs Authority. The dispute concerned an ungrounded and arbitrary increase of customs value of all imports by the Client’s subsidiary of crop science products supplied by a related group trading company. 

This customs value dispute involved complex transfer pricing considerations and issues.

We advised the Client on strategy, merits and jurisdiction of contemplated investor-state claims against Ukraine concerning arbitrary and unreasonable increase of customs value and assessment of multimillion import VAT and customs duties by the Customs Authority. Such measures resulted in the violation by Ukraine of its obligations under the куізусешму Bilateral Investment Treaty to accord a fair and equitable treatment to the Client’s investments in the territory of Ukraine and to protect the investment against unreasonable or discriminatory measures.

We finally succeeded in convincing the Customs Authority to recognize the transactional price (under the first customs value method) for customs valuation of related-parties imports.