Is it mandatory for the customs authority to contact the customs authorities of the EU or other member states when determining the customs value? – The decision of the European Court of Justice in a Hungarian case
In its judgment in Case C-187/21 FAWKES, the European Court of Justice concluded that the customs authority is only required to contact the customs authorities of other member states for determining the customs value if the information from those authorities is essential for establishing the correct customs value.
According to the Community Customs Code (2913/92/EEC), the customs value of imported goods is generally based on the transaction value. If the transaction value cannot be determined, the customs value can also be established based on export transactions carried out close to the relevant dates, directed towards the Union.
A Hungarian company imported various textile products from China. However, the Hungarian customs authority considered the declared transaction value to be too low and could not find sufficiently identical or similar goods. Therefore, the customs value was determined according to the free method set out in the Community Customs Code, using data from the national database, taking into account a +/- 45-day period from the date of customs clearance.
The company challenged the decision in court, claiming that the customs authorities of other member states should have obtained the necessary information for determining the customs value, and that the customs authority should have taken into account the transaction value of other goods that had been cleared through customs and were not contested by the customs authorities of other member states. The company also objected that the customs authority did not consider data beyond the +/- 45-day period.
The Supreme Court turned to the European Court of Justice to clarify whether, when determining the customs value, only national databases can be used, or if the customs authorities of other member states must also be contacted for the necessary information. It was also interested in whether transaction values from the customs declarant, but not contested by other customs authorities, can be taken into account, and how the customs value of goods exported at the "same or nearly the same time" should be interpreted, as well as whether the time interval can be limited to 45 days before and after customs clearance.
In its judgment, the European Court of Justice emphasized that the customs authorities must consider all available databases and sources of information to establish the most accurate and realistic customs value. If national databases provide sufficient data, they can be used. However, if access to a database is not immediate or free, and the data it contains is not suitable for determining the customs value, the customs authorities are not required to consider them.
The Court also pointed out that customs authorities may request supplementary data from the customs authorities of other member states if the circumstances justify it. According to the Court, customs authorities are entitled to reject transaction values that have not been contested by either the national or other member state customs authorities, if preliminary doubt is justified.
Finally, the Court confirmed that when determining the customs value of goods exported at the "same or nearly the same time," customs authorities can use the 45-day period before and after customs clearance, as long as the necessary information comes from transactions within this period.
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