Russian Supreme Court Rules Unlawful Increase in Duty on Imported Cars

The Russian Supreme Court has deemed the adjustment towards a sharp increase in the customs value of a car purchased by a Russian woman as unlawful. This information was reported by the Supreme Court’s press service. Victoria Barabanova had signed an agency agreement to buy a used car in South Korea for $57.8 thousand. The import duty amounted to 2.6 million rubles. However, the Vladivostok customs considered the price to be underestimated since a similar car was being sold on a foreign auction site for nearly three times the price, and required an additional 2.8 million rubles in duty. The buyer contested this decision, citing the unreliability of the website’s information. The first-instance court ruled in favor of the plaintiff, but the appellate and cassation instances sided with the customs authority. The Supreme Court of Russia clarified that the specific rules regarding determining the value of goods imported for personal use are related to the fact that buyers do not engage in entrepreneurial activities and are limited in their ability to provide commercial documents. In case of disagreement with the information provided by the declarant, the burden of proof lies with the customs authority, as stated by the press service of the highest judicial authority. The Economic Disputes Judicial Panel of the Supreme Court, upon reviewing the cassation appeal, upheld the first-instance court’s decision, deeming the increase in the customs value of the car purchased by the citizen for personal use as unlawful.